Fuel hedging for the war

[banger]

I know the price of fuel has been rising and will go higher when a war starts. Anyone know if jetBlue and SWA has a fuel hedging deal? I know Delta does and UAL tried to. Thanks.

 

[Bally]

"85% of SWA's fuel needs ae hedged for the 1st quarter of 2003 at oil prices equivalent to $23 a barrel. Oil traded in January for around $33 a barrel. In the second quarter, SWA has hedges in place for 87% of its fuel needs and is hedged for 75% for the second half of 2003."

Gary Kelly
SWA CFO

 

[General Lee]

I believe Delta's hedging is as follows:

1. 65% of their fuel is hedged at 77 cents a gallon (I don't know what that is per barrel) thru March

2. Then 65% of their fuel is hedged at 75 cents a gallon thru June

3. Then 50% of their fuel is hedged after that at I beleive 75 cents through the rest of 2003.

Let's hope fuel prices go down after the war, which will likely happen. United is unable to hedge at all---which means they are paying up to $1.20 per gallon currently. I am sure that is adding to the reported $10 million a day loss they are having. Now the majors (including Delta) have added a $10 surcharge per leg----which should help a little. Let's hope for a quick war indeed.

Bye Bye---General Lee