ramper_in_las
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- Jul 13, 2004
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I was looking at all the HNL bags for ata in LAS this morning and I had a question develope. (and no it didnt hurt) Does anyone know if ATA is benefitting off of WN's fuel hedge program???
TZ and the fuel hedge
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coolflyingfool
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- Aug 20, 2002
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Not unless SW is giving ATA fuel, which I highly doubt. just my thoughts.......
corl737
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- Jun 13, 2005
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Indirectly, yes. By being able to keep their costs and fares in check through the fuel hedging program SWA is able to feed a significant amount of traffic to TZ. If SWA's fares were higher, fewer passengers would take the trips.
OP
ramper_in_las
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- Jul 13, 2004
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in las ata uses the same concourse, same fuel pumps, same fueling company, which brought up my original question.
coolflyingfool
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- Aug 20, 2002
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The same fueling company handles over half the other airlines with the same fueling equipment. They could be getting the same price also.
The hedging program has no effect on the pump price. SWA probably pays the same price (assuming the same terms) as everyone else in LAS.
The hedges simply offset the cost of fuel.
Also, Southwest does not hedge 100% of their fuel.
For 2006, 65% is hedged @ $32.00/barrel
