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SWA set to triple DEN flts

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Old 05-03-2006 | 06:54 AM
  #31  
ryane946's Avatar
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Joined: Dec 2005
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From: FO, looking left
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It is very simple. Southwest pays $36 a barrel for 70% of their fuel, and all other airlines are paying about $74 a barrel right now.
Fuel is an airlines largest expense.
What happens when a companies largest expense doubles!


I owned Southwest's stock from March 2003, and I made about $1,000. But I sold mine off at the end of 2005. I know their fuel hedges are running out, and I don't want to have anything to do with Southwest once that advantage is gone.
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Old 05-03-2006 | 07:09 AM
  #32  
C152driver's Avatar
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Joined: May 2006
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From: Bug Smasher Captain, CFI
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ryana946,

Congratulations on a profitable trade.

I am perfectly clear on the ramifications of the fuel situation. Perhaps you might consider what would happen in this industry *if* Southwest were to continue the fuel hedges. Food for thought.


--Andy
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