Delta Has Substantial Fuel Hedges for 2009
While many carriers have been trying to unwind their hedges (like Southwest), Delta has apparently gone with a different approach. They’re still heavily hedged for the rest of the year.
In the first quarter, Delta has 80 percent of its fuel needs hedged. That actually increases after that. Here’s the table reprinted from Delta’s fourth quarter earnings report with full details of their 2009 hedges.
| Avg Jet Fuel Equivalent* | ||||
|---|---|---|---|---|
| Percent hedged |
Cap | Floor | Fuel Price/Gal* (at today’s fwd curve) |
|
| Q1 2009 | 80% | $2.81 | $2.43 | $2.34 |
| Q2 2009 | 85% | $2.45 | $2.09 | $2.17 |
| Q3 2009 | 55% | $2.19 | $1.22 | $2.10 |
| Q4 2009 | 32% | $2.24 | $1.05 | $2.00 |
*Includes tax and transportation costs of approximately $0.17/gallon.
It’s interesting to see them bucking the trend here.
In addition to writing BNET's travel industry blog, Brett Snyder also pens the award-winning consumer travel blog, Cranky Flier. You can follow him on Twitter under the name crankyflier.
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