KarlB737
Topic Author
Posts: 2632
Joined: Sat Mar 20, 2004 9:51 pm

USAirways Has Hedged 41% Of Fuel For 2nd Quarter

Sat Jul 08, 2006 3:38 am

Courtesy: Associated Press

USAirways Has Hedged 41% Of Fuel For 2nd Quarter

http://biz.yahoo.com/ap/060707/us_airways_hedging.html?.v=1
 
leftshoe
Posts: 19
Joined: Tue Mar 23, 2004 12:02 am

RE: USAirways Has Hedged 41% Of Fuel For 2nd Quart

Sat Jul 08, 2006 4:31 am

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
Posts: 777
Joined: Fri Mar 30, 2001 10:29 am

RE: USAirways Has Hedged 41% Of Fuel For 2nd Quarter

Sat Jul 08, 2006 4:35 am

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
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B6767200
Posts: 69
Joined: Mon Jul 03, 2006 10:02 pm

RE: USAirways Has Hedged 41% Of Fuel For 2nd Quarter

Sat Jul 08, 2006 5:04 am

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
Posts: 4017
Joined: Sun Jul 31, 2005 11:05 pm

RE: USAirways Has Hedged 41% Of Fuel For 2nd Quarter

Sat Jul 08, 2006 6:29 am

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.
 
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aloha73g
Posts: 1845
Joined: Mon Jul 07, 2003 6:30 pm

RE: USAirways Has Hedged 41% Of Fuel For 2nd Quarter

Sat Jul 08, 2006 6:49 am

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!
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