Southwest Sells Aircraft, Modifies Fuel Hedges - NBC 5 Dallas-Fort Worth

Southwest Sells Aircraft, Modifies Fuel Hedges

    processing...

    NEWSLETTERS

    Southwest Sells Aircraft, Modifies Fuel Hedges
    Getty Images
    Southwest Airlines is joining the big guys and heading to LGA.

    Southwest Airlines is selling five aircraft for $175 million and has agreed to lease the planes back from the buyer for 12 years.

      The Dallas-based airline also modified its fuel hedge portfolio to limit its exposure from falling oil prices.
     
    The disclosures were made in a Securities and Exchange Commission filing this week.
     
    The company says it entered into a two-part sale and leaseback transaction with an unidentified third party aircraft lessor for the sale and leaseback of Boeing 737s.
     
    Southwest also modified its fuel hedge portfolio -- minimizing fuel hedging losses related to further oil price declines.
     
    The airline estimates its 2009 economic fuel costs per gallon, excluding fuel taxes, to be around $1.80, resulting in an estimated savings of approximately $1.4 billion. That compares to the 2009 fuel price guidance provided by the company in July.