Thread: Fuel Prices
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  #6  
Old September 11th 05, 04:34 AM
Robert M. Gary
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BTW: Just to be clear for those not familiar with financial portfolio
development.

Southwest is actually hedging their fuel contracts by buying contracts
in more liquid (i.e. tradable) commodities such as crude, etc. So,
while they may be paying market rate at any particular airport, they
are extracting income from the increased fuel prices through their
commodities contracts. So their effective rate for fuel is less,
although the credit card receipt may not reflect it. I just wanted to
clarify that.

-Robert