Southwest Airlines' Decision to Abandon Fuel Hedging Program Becomes Expensive Amid Rising Oil Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: Barron's
Fuel Hedging Program: Southwest Airlines has recently discontinued its fuel hedging program, which is a strategy used to protect against rising fuel costs.
Timing Concerns: The decision to abandon this program is viewed as poorly timed, especially given the current volatility in fuel prices.
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Analyst Views on LUV
Wall Street analysts forecast LUV stock price to rise
14 Analyst Rating
4 Buy
9 Hold
1 Sell
Hold
Current: 37.360
Low
34.00
Averages
44.21
High
60.00
Current: 37.360
Low
34.00
Averages
44.21
High
60.00
About LUV
Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company's fare products include four categories: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select to provide customers options when choosing a fare. It also offers ancillary services, such as EarlyBird Check-In, Upgraded Boarding, and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies. Its Rapid Rewards loyalty program enables program members to earn points for every dollar spent on Southwest base fares, also including purchases paid with LUV Vouchers, gift cards, or flight credit, with no portion of the purchase price paid with Rapid Rewards points. It operates over 803 Boeing 737 aircraft in its fleet and serves 117 destinations in 42 states, the District of Columbia, the Commonwealth of Puerto Rico, and ten near-international countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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