Southwest Airlines hedges oil supply

Southwest Airlines, the most profitable US airline, has locked in prices for 80% of its jet-fuel costs through the end of next year - more than any of its rivals.

Other carriers may have lost their chance to hedge prices. Surging oil prices are forcing airlines to decide whether to buy jet fuel months in advance, when prices are at a 14-year high, or hold off and wait for lower prices.

Higher fuel costs contributed to a combined $3.99 billion (€3.28bn) loss in the first-half for the 10 largest US carriers this year.