Old Jun 19, 10, 9:56 am
FlyerTalk Evangelist
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: OneSky Alliance Elite+ with Zirconium and oak leaf cluster, Braniff Unobtainium
Posts: 17,355
WN no longer has a significant competitive advantage with fuel hedges [ended in 2009 when the oil prices flopped to $35 per barrel]

Southwest (LUV) is flying in the completely opposite direction and has already hedged about 47% of its planned 2010 fuel purchases. Additionally it has pledged $425MM in cash as collateral on hedges it has stretching as far into the future as 2013.
Also, it's not just PDX. Go look at SEA-LAX prices while you're at it. (And no, SEA is not the same kind of captive/fortress hub as MSP. DL is not exposed to any LCC on a huge percentage of their routes out of hubs like MSP and ATL. AS is. As the Sesame Street song goes, "one of these things is not like the other...")

Crude's also $80 now (and that's historically very high). Don't you think that has just a touch to do with why airfares are higher than what they would be historically? Or is AS supposed to ignore what their cost inputs are and set fares to what they were during the worst recession in 60 years- a time where airlines were losing buckets of money?
eponymous_coward is online now