People keep talking about how oil is $40 barrel and yet the airlines have not reneged on their punitive fees. However, what you have to understand is that just because oil is $40/barrel and fares are still high doesn't mean the airline is making money. I know AS typically tries to hedge about 50% of their fuel needs for a quarter. If AS hedged 50% of fuel at $100/barrel for Q4, they are are now losing money by the fistful on fuel hedges. Keep in mind I say IF because I don't know the exact details beyond what was reported in past financial statements. But I do know there were huge losses reported by AS and WN during the third quarter due to the decline in value of their fuel hedges. It's likely this will be repeated in the fourth quarter, only it will be much worse, because I don't think anybody expected fuel prices to drop as much or as quickly as they did. The airlines that DON'T hedge fuel will be the ones that lucked out during this quarter.