"WTI crude reached $104.69 per barrel as of March 30, up 56.3% from a month earlier, driven by the closure of the Strait of Hormuz following the U.S.-Iran conflict, which CNBC described as 'the biggest oil supply disruption in history.'"
"Southwest terminated its fuel hedging program in early 2025. With WTI near a 12-month high, that decision has drawn criticism from analysts and investors."
"The bearish case centers on three problems: Southwest discontinued its fuel hedging program in early 2025, leaving it fully exposed to spot prices, with jet fuel up roughly 106%."
Southwest Airlines has undergone a major operational overhaul but has seen its shares decline by 22% amid rising oil prices. WTI crude oil prices surged to $104.69 per barrel, significantly impacting jet fuel costs, which have risen 106%. The airline's decision to terminate its fuel hedging program in early 2025 has drawn criticism, as it leaves the company vulnerable to volatile fuel prices. Analysts have adjusted their price targets downward, reflecting concerns over the airline's financial outlook amidst these challenges.
Read at 24/7 Wall St.
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