Southwest Airlines' fuel hedging position benefits disappearing

Premium Analysis

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".

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,515 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.