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.
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