Pivotal Airline Faceoff Today

[jimntx]

Jim, I don't believe your evil oil companies have much to do about kerosene futures or future prices. This is done in the futures market on wall street.

[post="188851"][/post]​

First off, I worked for one of the 3 largest oil companies for many years. I know how they operate.

Second, who do you think are some of the major players in the futures markets? If you think the oil companies are not in there working the numbers (By proxy, of course) to their advantage, I have a nice bridge you might be interested in.

 

[Justme]

I have a nice bridge you might be interested in.

[post="188973"][/post]​

Jim,

Is it the Brooklyn Bridge in Waco? How much?

jm

 

[FWAAA]

I disagree. WN would be dumb to hedge fuel when prices are this high. Hedging, as I understand it, means you buy fuel at today's prices with deliveries scheduled in the future. Only way WN would hedge is if they realistically expected fuel to continue to increase substantially. Hedging is always a risk, as if the price is lower on the delivery date than on the date in which you paid for the fuel, you lose. Otherwise, you win.

As someone else pointed out, speculators are losing their shirts with the hedging agreements already in place. Expect it to be harder in the future to hedge ... at least until world political situation stabilizes some (Iraq and elsewhere).

[post="188881"][/post]​

Looks like I was right. Maybe it's dumb, but WN just keeps on hedging. From today's 3Q2004 earnings release:

The Company is over 80 percent hedged for fourth quarter 2004 with prices capped below $24 per barrel; over 80 percent in 2005 at $25 per barrel; 60 percent in 2006 at $31 per barrel; and over 40 percent at $30 per barrel in 2007. Excluding fuel, CASM for third quarter 2004 was 6.34 cents, which was flat with the year ago quarter.

http://biz.yahoo.com/prnews/041014/dath005_1.html

 

[UseYourHead]

Yea,

Lets fall on our sword to save the rest of the industry...you've got to kidding. If you don't like it quit, there are a majority who can be honest and appreciate this for what it is.

The days of feather-bedding are over, if you want to work on the other hand, there is a place for all of us in time....

Here's a "cogent" idea.

Shut this Mess down. Before it totally ruins the rest of the industry.

[post="188710"][/post]​

 

[bobcat]

Majority? Appreciate what?