Is Fuel Hedging Cheating?

[Tejas-Jet]

We are all waiting for the fuel hedging to end so that SWA has to raise fares, which will put SWA ticket prices a lot closer to the rest of the industry prices. When this happens we all will have the same basic costs (labor/fuel)

Really???? Well, I know of one legacy pilot group that is in negotiations with their management for a new (combined) contract and they have already said that they are....

#1. Tired of giving
#2. Saved the airline while in BK
#3. Want their fair share since management has been given and has cashed
in stock options that were not made available to the pilots.

You really think costs will stay the same with the legacy carriers? Especially after they are out from under the clutches of BK? And once the profits start showing up?

I can see some "Summers of Love" already on the horizon.

TEjas

 

[cactuspilot]

If your not cheating, your not trying...

 

[SWA GUY]

Rubbin' is racin'

 

[ferlo]

Wrong. Over 100mil this quarter with no hedges.

You're probably right. I haven't heard about last Q

 

[Gorilla]

There are a few scattered programs that let average Joe motorist "hedge" gasoline in a crude way. It's very simple. Let's say gas is selling from CITGO for $2.80. You say "I want 1,000 gallons." You may get a slight per-gallon cut due to the bulk buy, so let's say you pay CITGO $2,650 for the 1,000 gallons. You are handed a coded ATM-like card, and that card is used to "pay" for the gasoline until the 1,000 gallons are used up.

If gasoline prices dip, you are a bit screwed, but the value of the card will pretty much always be gallons remaining X current gas price.