whatkindoffreshhell
Veteran
WN has locked in more than 70% of its jet fuel requirements for this year at price equivalent of $51 per barrel. The airline values its current portfolio of hedges at $2.8 billion!
So of course the wiseass investment bankers suggest WN sell the hedges, distribute the funds to shareholders and raise fares to deal with higher fuel costs.
And Gary Kelly replies "only if we want to go bankrupt!"
WN has fuel hedges at $63 barrel extending to 2012.
And only LH is interested in how WN accomplished this feat!
Fascinating study done by Prof David Carter of OSU (written in 2004) that is publicly available.
(all the above details available in today's WSJ article by George Anders)
One of the reasons given by Dr.Carter regarding the reason other airlines haven't been so good at hedging is because of frequent management shuffles and thus weak decision-makers.
WN is exercising a strength that is available to them by hard work and courage. Nobody is touting WN as a 'consolidation' candidate to achieve profits, eh?
So of course the wiseass investment bankers suggest WN sell the hedges, distribute the funds to shareholders and raise fares to deal with higher fuel costs.
And Gary Kelly replies "only if we want to go bankrupt!"
WN has fuel hedges at $63 barrel extending to 2012.
And only LH is interested in how WN accomplished this feat!
Fascinating study done by Prof David Carter of OSU (written in 2004) that is publicly available.
(all the above details available in today's WSJ article by George Anders)
One of the reasons given by Dr.Carter regarding the reason other airlines haven't been so good at hedging is because of frequent management shuffles and thus weak decision-makers.
WN is exercising a strength that is available to them by hard work and courage. Nobody is touting WN as a 'consolidation' candidate to achieve profits, eh?
