Company Overview
Major US low-cost carrier known for its point-to-point network, all-Boeing 737 fleet, and historically aggressive fuel hedging strategy.
Commodity Exposures
Price Sensitivity
Southwest historically maintained one of the most aggressive fuel hedging programs in the airline industry, at times hedging 70%+ of fuel consumption years in advance. This strategy provided substantial earnings protection during oil price spikes but also created losses when prices fell. The company has moderated its hedging approach in recent years. Southwest's all-Boeing 737 fleet provides fuel efficiency advantages that partially offset crude oil price sensitivity.
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