During the earnings conference call, Siegel or maybe Baldanza said UAIR is 20% hedged for fuel currently although he didn't say at what price.
Does anybody know?
Does anybody know?
Fuel Hedge
- Thread starter Rob
- Start date
PITbull
Veteran
I thought he said 30% is hedged for 2004 and 5% for 2005.
It will be difficult for U did hedge more fuel because they have to come up with the money up front. SW is 100% hedged, but they can pay as they go along.
Mangement doesn't tell us what the hedge price is in the future, only what it was in the past. SW, I believe has hedged at .72 cents from what I read sometime ago.
It will be difficult for U did hedge more fuel because they have to come up with the money up front. SW is 100% hedged, but they can pay as they go along.
Mangement doesn't tell us what the hedge price is in the future, only what it was in the past. SW, I believe has hedged at .72 cents from what I read sometime ago.
Why don't we just 'rightsize' the fuel dpt. at U, and outsource it to WN? Saves labor costs, and get better results. 
autofixer
Veteran
I know this is ancient history, but Piedmont had a guy who just bought fuel futures, getting the best possible price. Piedmont actually took delivery of the fuel and had their own trucks to pump fuel onto their jets and of course, sell it to other companies at a profit. It is somewhat frustrating knowing that Piedmont had many of the positive traits that SWA now has and had them 15 years ago. I guess a good manager would have had the vision to keep this organ in place; however, history has shown that U management is inept no matter who they are. Just another reason I am always P.O.'ed. Ed
zonecontroller
Advanced
- Sep 3, 2002
- 176
- 0
UAIR
The cost of aviation fuel per gallon, including taxes, for the fourth quarter, was 87.74 cents (82.54 cents excluding taxes), up 4.9 percent from the same period in 2002. US Airways' fuel position is 20 percent hedged for the first quarter of 2004, 30 percent hedged for all of 2004, and 5 percent hedged for 2005.
This is from the quarterly news release.
No price per gallon was mentioned
LUV Form 10-K for SOUTHWEST AIRLINES CO
Fuel and oil expense per ASM increased 4.5 percent, primarily due to a 6.3 percent increase in the average jet fuel cost per gallon. The average cost per gallon of jet fuel in 2003 was 72.3 cents compared to 68.0 cents in 2002, excluding fuel related taxes but including the effects of hedging activities. The Company's 2003 and 2002 average jet fuel costs are net of approximately $171 million and $45 million in gains from hedging activities
The cost of aviation fuel per gallon, including taxes, for the fourth quarter, was 87.74 cents (82.54 cents excluding taxes), up 4.9 percent from the same period in 2002. US Airways' fuel position is 20 percent hedged for the first quarter of 2004, 30 percent hedged for all of 2004, and 5 percent hedged for 2005.
This is from the quarterly news release.
No price per gallon was mentioned
LUV Form 10-K for SOUTHWEST AIRLINES CO
Fuel and oil expense per ASM increased 4.5 percent, primarily due to a 6.3 percent increase in the average jet fuel cost per gallon. The average cost per gallon of jet fuel in 2003 was 72.3 cents compared to 68.0 cents in 2002, excluding fuel related taxes but including the effects of hedging activities. The Company's 2003 and 2002 average jet fuel costs are net of approximately $171 million and $45 million in gains from hedging activities
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
Also from LUV's Annual Report:
the Company has hedges in place for over 80 percent of its anticipated fuel consumption in 2004 with a combination of derivative instruments that effectively cap prices at about $24 per barrel, including approximately 82 percent of its anticipated requirements for first quarter 2004. Considering current market prices and the continued effectiveness of the Company's fuel hedges, the Company is forecasting first quarter 2004 average fuel cost per gallon to be in the 75 to 80 cent range. The majority of the Company's near term hedge positions are in the form of option contracts, which protect the Company in the event of rising jet fuel prices and allow the Company to benefit in the event of declining prices.
Jim
the Company has hedges in place for over 80 percent of its anticipated fuel consumption in 2004 with a combination of derivative instruments that effectively cap prices at about $24 per barrel, including approximately 82 percent of its anticipated requirements for first quarter 2004. Considering current market prices and the continued effectiveness of the Company's fuel hedges, the Company is forecasting first quarter 2004 average fuel cost per gallon to be in the 75 to 80 cent range. The majority of the Company's near term hedge positions are in the form of option contracts, which protect the Company in the event of rising jet fuel prices and allow the Company to benefit in the event of declining prices.
Jim
