Southwest Airlines Fuel Hedging

by Carrie Thompson on July 12, 2008

by Carrie Thompson | July 12th, 2008  

So, Southwest Airlines is in WAY better shape than the other large U.S. airlines these days because for years they’ve done something called fuel hedging. That’s why Southwest is actually expanding service later this year, while all of the legacy airlines are severely cutting back on service. Most people who pay attention to this sort of thing have at least heard the term “fuel hedging,” but not everyone has a good understanding of what that means. This YouTube video does a stellar job of breaking it down for you.

Honestly, I very seldom fly Southwest myself, though I find the company good for business when they pull stunts like ticketing passengers for cell phone use (totally justified) or enforcing a non-existant dress code. For me, I just can’t tolerate the Cattle Call boarding process, although I understand it has been somewhat revamped. The Southwest boarding area in my home airport (LIT) looks like a parking lot with the poles with different numbers all over the place.

Anyway, enjoy the video! You never know when a question about fuel hedging will come up in a trivia game.

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