SWA locks in more hedges

[CRJ's suck]

Yeah but those hedges are going to run out. Just wait until that happens.

 

[bravodude]

http://biz.yahoo.com/ap/081013/southwest_earnings_preview.html?.v=1

 

[General Lee]

Hey General. ************************* off.

Gup

Wow, testy. I think you have had too many LBB layovers lately, and maybe an ELP or ISP. So sore-ee. (said with Canuk accent)


Bye Bye---General Lee

 

[gt1900]

I think they are pretty smart if they do. Every airline should have bought when it dropped into the $70's. Even if it droped down to $50 they could still make money, however, if it skyrocketed to $140 again they would look like geniouses... Again.....

 

[GuppyWN]

Yeah I get a little testy when someone wishes my company bad fortune. Especially from proven buttholes like you.

Hugs and kisses,
Gup

 

[clickclickboom]

There is nothing I would like more than to see SWA move into ATL and eat DAL's double breated lunch..

 

[JetDude]

There is nothing I would like more than to see SWA move into ATL and eat DAL's double breated lunch..

Opening a market is one thing...eating an established competitor's lunch is quite another.

 

[Daytonaflyer]

Every economist has said that oil will rise back into the mid to high $100 range within the next 5 years. This global economic downturn depressing the prices is temporary, the growing demand versus crude production problem is not. Economies will recover, and crude prices will rise again.

If this rumor about SWA is true, it makes good business sense. Sounds like the other carriers are just jealous that they don't have the cash or leverage to join in.

I think SWA may have misjudged the market with this one. Farm Bill HR 2419 was passed by the 110th US Congress by overriding the president's veto and it closed the Enron Loophole. This effectively eliminates the ability of oil speculators to artificially drive up the price of oil free from government regulation.
The bill doesn't take full effect until Sept 2009, but until then, we will continue to see oil investors withdraw from the oil market and a corresponding decrease in the price of oil as the deadline approaches. This fact, along with the traditional decline in oil prices during the winter months will lead to oil below $77/bbl.
This means that for at least half of the year, oil will be trading below the $77 mark, most likely it will be for the entire year.

 

[JumpJetter]

Dude, this is a FI RUMOR!! Whose to say that this was even done?

 

[fiel12]

Gee. If these hedges even did happen, I sure hope the guys at the SWA hedging dept. (who do this for a living) at least educated themselves by polling pilots on FI. Ya think they even considered HR 2419, or the fact oil is down below $100 now? Paleeeze.