Apparently, fuel hedges include purchasing current oil contracts, buying call options and purchasing swap contracts.

Bloomberg senior analyst George Ferguson says that US airlines "hardly hedge at all." He believes that Southwest and US-based rivals are "on the right side" of this equation.

Quote:

“Most of the U.S. carriers are poised to participate in the downside movement to a good degree,” Ferguson said, estimating the oil-price decline could represent “a 20% or 25% cut to their most important cost.”

OAH, there's no assurance prices will remain low the rest of the year.

Bloomberg