fuel hedging

Among airlines, Southwest has been famous for keeping its fares relatively low by using fuel hedging. Its accountants have kept the airline profitable by safeguarding itself against market volatility. It locked in low prices for a significant portion of its fuel needs, so when the price of oil...

Hedging fuel costs sounds confusing, but it's nothing new. Some airlines, like the budget model Southwest, have managed to claim a profit in no small part because their masters were clever enough to buy most of its fuel when it was still sensibly priced. That can work out really well if gas prices...