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USAirways Has Hedged 41% Of Fuel For 2nd Quarter

KarlB737 From United States, joined Mar 2004, 2377 posts, RR: 11
Posted (3 years 4 months 1 week 3 days 9 hours ago) and read 791 times:

Courtesy: Associated Press

USAirways Has Hedged 41% Of Fuel For 2nd Quarter

http://biz.yahoo.com/ap/060707/us_airways_hedging.html?.v=1

5 replies: All unread, jump to last

Leftshoe From Germany, joined Mar 2004, 22 posts, RR: 0
Reply 1, posted (3 years 4 months 1 week 3 days 8 hours ago) and read 701 times:

In the article it is mentioned that Southwest hedged the majority of its fuel at an (in my eyes) unbelievable 36$/barrel oil. If that's true, kudos to WN!!!

How's the hedging policy at other airlines?

For non-market insiders it's quite difficult to make something out of the article and to assess whether 41% is an adequate rate.

Boeing 747-311 From United States, joined Mar 2001, 794 posts, RR: 0
Reply 2, posted (3 years 4 months 1 week 3 days 8 hours ago) and read 694 times:

It says there that SOuthwest has hedged its fuel for 70 percent fo its fuel at 36 dollars per barrel is that true am i reading this right? becuase that would make them spending haldf of what other airlines are paying

Come fly with US

B6767200 From , joined Dec 1969, posts, RR:
Reply 3, posted (3 years 4 months 1 week 3 days 8 hours ago) and read 630 times:

Quoting Leftshoe (Reply 1):
In the article it is mentioned that Southwest hedged the majority of its fuel at an (in my eyes) unbelievable 36$/barrel oil. If that's true, kudos to WN!!!

How's the hedging policy at other airlines?

For non-market insiders it's quite difficult to make something out of the article and to assess whether 41% is an adequate rate.

Fuel hedging can be very expensive, in order to hedge you have to pay up front and in full!

Does anyone know of the loop hole for fuel if bought in Oakland, California? I remember reading something along the terms that you can fill your plane up anywhere in California and get a tax break if the fuel is bought in Oakland, I know United and jetBlue have received tax breaks in association with this. Any information will be appreciated.

A342 From Germany, joined Jul 2005, 3827 posts, RR: 1
Reply 4, posted (3 years 4 months 1 week 3 days 6 hours ago) and read 531 times:

Quoting Boeing 747-311 (Reply 2):
It says there that SOuthwest has hedged its fuel for 70 percent fo its fuel at 36 dollars per barrel

I wonder when they made those contracts...

But would it have been possible to make a contract, which is valid for an unlimlited time, when oil was at 10$ or so ? Now that would have been a bummer.

Exceptions confirm the rule.

Aloha73G From United States, joined Jul 2003, 2133 posts, RR: 6
Reply 5, posted (3 years 4 months 1 week 3 days 6 hours ago) and read 499 times:

Quoting KarlB737 (Thread starter):

USAirways Has Hedged 41% Of Fuel For 2nd Quarter

......at $67.37

Not too exciting, especially compared to Southwest.

As far as the Oakland thing, I ahve no idea about that, but I do know that Hawaiian has bought fuel in Singapore and shipped it to Hawai'i saying it was cheaper to do it that way.

When the price is sky high, you have to get creative!!!

-Aloha!

Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!

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