Southwest hedges 50% of fuel

Eleanor Steed
By Eleanor Steed September 21, 2016 14:38

Southwest hedges 50% of fuel

Southwest Airlines CEO Gary Kelly has said that the carrier is continuing with its fuel heading strategy of hedging 50% of its fuel needs by the start of the year.

“We’ve had very successful hedging over 25 years,” Kelly said. “We like to have protection if [prices rise]. If prices go down, we will be fine.”

As of July 18, Southwest disclosed that the fair market value of its fuel hedges for the second half of 2016 was a net liability of $545 million. Net liability for the 2017 and 2018 hedge portfolios was $510 million.

Eleanor Steed
By Eleanor Steed September 21, 2016 14:38