Boyd – Capacity Reductions With A Sense of Urgency

[learob]

here you go

According to 24/7 Wall St., here's what Southwest’s fuel hedges look like for the coming years:

"2007 is 95% hedged at $50/barrel;
2008 is 65% hedged at $49/barrel;
2009 is over 50% hedged at $51/barrel;
2010 is over 25% hedged at $63/barrel;
2010 is over is 15% hedged at $64/barrel;
2012 is 15% hedged at $63/barrel."

 

[ackattacker]

I may be wrong about this, but aren't these hedges for a specific quantity of fuel per year? So those percentage numbers only apply to current rate of use. Hence any expansion due to the legacy carriers shrinking would be at market fuel rates, no competitive advantage.

 

[Ex737Driver]

Well since we have at least 3-4 years of hedges at close to $51 dollars a barrel, I highly doubt the playing field is going to have the same competitors as today or at least the size they are in 3-4 years if oil stays at $120+. We should count our blessings and hope for the best.

Ain't that the truth. It's going to get ugly and soon, for everyone.

 

[zman]

SWA is kinda like a track star sprinting in a field of runners being chased by a bear. You don't even have to be first, just faster than the weakest. There are plenty to run out of steam long before LUV.

That is probably one of the best things that I have read on this board. Also if you look closely you can almost see which one is going to get gobbled up next!!!