crxpilot
Waaasssuuuupppppp!!!!!
- Joined
- Nov 26, 2001
- Posts
- 719
Uh, What? How is that so?
You obviously do not understand ALK's fuel situation.
"Alaska Air Group bought “call options” giving it the opportunity to buy fuel at a set price. While these require higher upfront payments, they didn’t obligate the airline to buy the fuel at the hedged prices.
Other airlines, including United and Southwest, have used another form of hedging called “swaps” or “collars,” that commits them to buy fuel at certain rates. "
http://www.bizjournals.com/seattle/stories/2009/01/26/story10.html
According to Forbes Alaska is paying for higher fuel prices:
"
Alaska and Horizon combined have agreements in place to buy half of their fuel supply this year at an average price equal to $76 per gallon of crude oil. The benchmark price for crude was around $51 Wednesday.
Alaska locked in the prices when oil was much more costly"
http://www.forbes.com/feeds/ap/2009/04/08/ap6271015.html