Virtually every semester a focus of attention is hedging in the airline industry and no firm is studied more than Southwest, so it was surprising when I heard new numbers in this piece. Staggering numbers in fact:
"While its point to point service and low-cost, low-fare contributed to the company’s past success, its intensive fuel hedging programs is also largely responsible for these past profits. In fact hedging alone saved Southwest Airlines over $3.5 billion and made up almost 83% of the company’s total profits between 1998-2008. [1] [2] "
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