Why southwest airlines would want to hedge fuel costs

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Reference no: EM131305283

An article in the Wall Street Journal noted: While other airlines were struggling to stay afloat, Southwest Airlines posted quarter after quarter of positive results as a result of its extensive hedging program, one of the few airlines that hedged fuel costs properly.

Briefly explain why Southwest Airlines would want to hedge fuel costs and how it would do so. Your answer should include a definition of hedging.

Reference no: EM131305283

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