April 4, 2018
In 2007 crude oil began the year priced at $60 per barrel. By July 11, 2008, it rose to $145.66, which was a nearly 150% increase, and a 31.6% increase in a little more than half a year. Southwest Airlines (LUV) was the only airline that hedged its largest variable cost. Southwest was paying $30 per barrel less than most of its competitors. In a little over five months later, on Dec. 26, WTI had dropped all the way down to $32.34. That’s a 77.8% decrease.