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From The Chairman: Fuel Prices
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<blockquote data-quote="FedExRookie" data-source="post: 1509437" data-attributes="member: 44400"><p>The fuel surcharge lags behind a few months, not sure how long off the top of my head, and I don't feel like searching. </p><p></p><p>When fuel prices go back up, that small profit will be offset by the delay to raise the fuel surcharge. Will it balance out, most likely not, the profit may be even smaller or be a loss overall, depending on how fast fuel prices swing back up.</p><p></p><p>Do you have a link to that particular WSJ article you are referencing? </p><p></p><p>As for options, I am not sure on what hedges they have on fuel. I know SouthWest is eating money due to hedging, since the fuel has dropped.</p></blockquote><p></p>
[QUOTE="FedExRookie, post: 1509437, member: 44400"] The fuel surcharge lags behind a few months, not sure how long off the top of my head, and I don't feel like searching. When fuel prices go back up, that small profit will be offset by the delay to raise the fuel surcharge. Will it balance out, most likely not, the profit may be even smaller or be a loss overall, depending on how fast fuel prices swing back up. Do you have a link to that particular WSJ article you are referencing? As for options, I am not sure on what hedges they have on fuel. I know SouthWest is eating money due to hedging, since the fuel has dropped. [/QUOTE]
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