You have to remember that long-run profits matter, not short-run. Most companies lose money when new, and many mature businesses waver in and out of profitability, especially when the nature of their business is cyclical. Airlines haven't been extremely profitable in the long-run compared to other industries, but their financial performance in recent times isn't indicative of an inability for them to profit.

Hedges are a form of insurance, and like all insurance, are losing proposition for the buyers on balance. Those who are *lucky* or or willing to lose the premium to protect against the possibility of greater losses may be acting rationally, but it is not logical to view hedging as anything more than a bet with the odds out of your favor in terms of expected return. WN happened to get the lucky end of the stick during a very bad period, but that doesn't mean they will continue to do so. In recent months, their bets have put them behind the pack instead of ahead.