The idiot hedgemakers at LUV have gone from Heroes to Goats.....2 Billion right out the window. There is such a thing as SELLING ya know....
In Southwest Airlines' quarterly report Monday, the company says that the falling price of crude oil has reduced the value of its fuel hedging contracts by nearly $2 billion, from $2.5 billion to $550 million, during the first 15 days of October.
but...look at LUV compared to LCC
MCO-DTW round trip Best Fare Southwest $503
Usairways $258 Nov 10 nov 20 return
Southwest is the new Usair of the 90's
$245 more for seats at the comedy club
I checked those fares and LCC and DAL are cheaper than LUV with any bags fees or paying for a coke. Luv is not always cheaper than the other carriers and more customers are finding that out..........Mav
Hyperboy....Try to book that fare...There may be 10 on the whole flight... Don't check any luggage, bring your own snacks and hope you don't have to make any changes. Sounds like a great deal in a perfect world
>>>but...look at LUV compared to LCC<<<
Does that price include the fee per person for a reservation made over the phone? Or, does that include the $15 charge for checking a first bag? $25 for the second..geez! Soft drink..how much? Snack? Are you kidding? What?! Wife got sick so we have a change of plans...HOW MUCH!!??
You guys are idiots.......SWA doesnt buy the hedges to make money off them....They do it to stabilize their fuel costs......The contracts will always go up and down in value but will eventually get converted to offset rising fuel costs.....AND if you think OIL is gonna stay below 100 bucks forever you really are stupid....As soon as the economy hints at a recovery the oil prices will start rising rapidly again.
SWA doesnt buy the hedges to make money off them....
REALLY??? Well, its the only thing that has kept your "operation" in the black for the past 3 years. What are you now?? Just another airline that can't make money.
Nevermind that 24 P/E. I'm sure that won't compress at all. Right.
Its going to $7. Dump it.
They could've ceased operations for an entire quarter with what they lost on their hedges. And others would argue, "that's not what hedges are for". Well, they hedged, they made two billion dollars and the stock went absolutely nowhere. Stockholders KNEW that LUV management was too stupid to lock in those hedging gains or better still DOESN'T CARE about making money. It's all about survival, for LUV that's always just good enough. Putting the employee first, that's LUV's philosophy.