Southwest Reports Net Loss Due to Fuel Hedges
10-16-2008, 08:18 AM
#21
Works Every Weekend
Joined APC: Dec 2007
Position: 737 ATL
Posts: 3,506
Originally Posted by sailingfun
Any fuel you have hedged above 75 a barrel is now underwater and a liability.
Oil is trading at $69 this morning and still headed down.
The legendary Southwest advantage over all other airlines is evaporating fast.
SWA allegedly has huge hedge positions far into the future. Way more than other companies. That seemed like pure genius up until a month ago. If the collapse of oil prices continues, it could quickly become a serious problem.
The key going forward will be identifying the bottom. You can bet there's a lot of CEOs out there right now trying to figure that out. They all want to be the next genius.
10-16-2008, 08:19 AM
#22
Gets Weekends Off
Joined APC: Mar 2008
Posts: 712
Originally Posted by ewrbasedpilot
Regardless, it still says "LOSS", not "PROFIT". If they had shown a "PROFIT", I'm sure they'd have said so, especially so as not to ruin their perfect run of profitable quarters, don't you think?
10-16-2008, 08:50 AM
#27
Gets Weekends Off
Joined APC: Mar 2008
Posts: 712
What is amazing is not only the jealousy, but these are the same whiners on other posts that tell guys working for the Virgin America's of the world that they are bringing wages down. Here at SWA you have industry leading wages bringing up the quality of life of all pilots. People like EWR and waterboarder should be embarrassed to call themselves pilots. Way to go guys, give yourselves a hand, clap, clap, clap.
10-16-2008, 08:55 AM
#28
Line Holder
Joined APC: Sep 2008
Posts: 82
I'm waiting for the all the union heads to want Gary Kelly's head on a plate. After all I'm sure they will say "Southwest loss money due to his large salary, and poor managment", just give it time that seems to be the unions answer for everything.
10-16-2008, 09:01 AM
#29
Works Every Weekend
Joined APC: Dec 2007
Position: 737 ATL
Posts: 3,506
Originally Posted by SWAjet
It's sad how many pilots have hidden jealousy against Southwest, and show enthusiasm with this loss... Just sad.
Many are tired of SWA being able to underprice the rest of the industry because of commodity speculation.
It appears those days might be over. With the oil price cut in half, the playing field just got a lot more level.
10-16-2008, 09:05 AM
#30
Works Every Weekend
Joined APC: Dec 2007
Position: 737 ATL
Posts: 3,506
Originally Posted by iahflyr
Speaking of fuel hedges, now that oil is as low as $68 per barrel, I hope every major airline who hopes to survive the next few years is buying fuel hedges right now.
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