Interesting Fuel Hedge Numbers...

[Mr.B]

For the second quarter of 2010:

* United has capped 72% of expected fuel consumption at $76 per barrel
* Delta has capped about 50% of expected fuel consumption at about $76 per barrel
* Southwest has a relatively complicated hedge position, with 44% hedged up to $100 per barrel, 17% hedged between $100 and $120 per barrel, and 35% hedged above $120 per barrel
* American has capped 39% of expected fuel consumption at $95 per barrel
* Continental has capped 31% of expected fuel consumption at $83 per barrel
* US Airways is completely unhedged in the second quarter

For the remainder of the year 2010 (including 2Q10):

* United has capped 54% of expected fuel consumption at $79 per barrel
* Southwest’s hedge portfolio for the remainder of the year is similar to its second quarter position, with 44% hedged up to $100 per barrel, 17% hedged between $100 and $120 per barrel, and 36% hedged above $120 per barrel
* Delta has capped about 43% of expected fuel consumption at about $79 per barrel
* American has capped 34% of expected fuel consumption at $93 per barrel
* Continental has capped 24% of expected fuel consumption hedged at about $87 per barrel
* US Airways is completely unhedged in full year 2010

 

[CoolSidePillow]

I have no idea what any of that means

People
In
Lack
Of
Total
Sanity

 

[get2flyin]

I think it means USAir is in big, big trouble.

 

[ultrarunner]

I think it means USAir is in big, big trouble.

Yep, it means that USAir has absolutely ZERO extra cash-on-hand, as it takes a cash position in order to hedge.

Interesting.

 

[Jon Rivoli]

Oil closed at $71.61 today and has been trending down. Hedges can bite you in the butt if the price goes the wrong way. Airways may do better than the rest.

 

[timmay]

Oil closed at $71.61 today and has been trending down. Hedges can bite you in the butt if the price goes the wrong way. Airways may do better than the rest.

Yeah I was thinking WN appears to be in a bad position.That would be ironic considering how well they have fared in the past with hedging.

 

[clickclickboom]

Yes but if you look at the gains wn took on hedges over the last few years they lost nearly every penny paying the piper when oil dumped last year...

 

[N1atEcon]

Yes but if you look at the gains wn took on hedges over the last few years they lost nearly every penny paying the piper when oil dumped last year...

Not a true statement but keep wishing.

Since 1998, it has saved $3.5 billion over what it would have spent if it had paid the industry's average price for jet fuel.

 

[GuppyWN]

Not a true statement but keep wishing.

Since 1998, it has saved $3.5 billion over what it would have spent if it had paid the industry's average price for jet fuel.

I want to believe you but I'd like to see a source for your statement. We love over 1 BILLION last year on bad hedges.

Gup

 

[JetMonkey]

6 more weeks and the year is half over. US Airways gambled by not hedging and so far it has payed off for them. Not because they don't have the cash, (1.6 Billion unrestricted). In fact hedging goes by the company's credit more than anything (the people putting up the hedge price expects you to be around later), and Airways credit rating has been moving upward the past year.