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Some of Southwest's profit comes from fuel price speculation, which could backfire on them much more quickly and easily than their core business: http://en.wik
by drags 15y ago
Some of Southwest's profit comes from fuel price speculation, which could backfire on them much more quickly and easily than their core business:
http://en.wikipedia.org/wiki/Southwest_Airlines#Risk_management http://en.wikipedia.org/wiki/Southwest_Airlines#Risk_managem...
- joahua 15y agoFrom what I understand fuel contract hedging is a pretty standard part of airline business. Obviously hedging has potential to go the other way but it's unlikely to erode profit unless competitors are able to significantly compete on price and steal customers...