|Quoting TPEcanuck (Reply 1):|
Morever, Southwest, or anyone else with liquid cash on hand for that matter, may continue to be purchasing hedges against the future price of oil.
|Quoting Leelaw (Reply 4):|
Hedging is the opposite of gambling. You hedge your bets, not bet your hedges.
|Quoting ExFATboy (Reply 8):|
Supa7E7 is right in that in the long run, trying to hedge against 100% of all upside risk is a money-losing proposition. But a few years ago when WN bought their hedges, the geopolitical realities pointed to increasing fuel prices. Perhaps not as sharp of an inrease as we've actually seen, but an increase, so WN's position was not that big of a gamble.