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America West Airlines has hedges in place for more than half its fuel purchases through September and is hedged at 50 percent for the fourth quarter, the airline said on Tuesday.
But in a filing with the U.S. Securities and Exchange Commission, America West said the impact of hedging, or purchasing fuel contracts in advance, would be less than 50 percent once it combines operations with US Airways
When America West and the much bigger US Airways announced their merger in May, the companies said they would create a business healthy enough to make money even with oil at $50 per barrel. Two months later with prices $10 higher, America West said the new US Airways "can be a survivor" and potentially make money IF the industry sheds capacity.
America West Airlines has hedges in place for more than half its fuel purchases through September and is hedged at 50 percent for the fourth quarter, the airline said on Tuesday.
But in a filing with the U.S. Securities and Exchange Commission, America West said the impact of hedging, or purchasing fuel contracts in advance, would be less than 50 percent once it combines operations with US Airways
When America West and the much bigger US Airways announced their merger in May, the companies said they would create a business healthy enough to make money even with oil at $50 per barrel. Two months later with prices $10 higher, America West said the new US Airways "can be a survivor" and potentially make money IF the industry sheds capacity.