Southwest Airlines' fuel hedging position benefits disappearing
Southwest Airlines stated the value of its fuel hedging contracts fell by nearly USD2 billion during the first 15 days of Oct-08. The value of the LCC's fuel derivative contracts has fallen from USD5.1 billion on 30-Jun-08, to USD2.5 billion on 30-Sep-08, to USD550 million on 15-Oct-08, in line with the reduction in jet fuel prices. However, CEO, Gary Kelly, emphasised that falling oil prices are a "great opportunity for us and certainly not a problem".
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