Yesterday, I mentioned that Southwest Airlines is a profitable company amidst the troubled sector. One of its keys to success was the fuel hedging practice undertook in the early 90s.
Now, where everyone is paying $ 125 a barrel, Southwest is paying $ 51 a barrel, a pretty good deal.
What a good lesson that can be applied in today’s challenging times!
If you’re a supplier, why not convince customers to buy goods from you now at better prices and get delivery in the future?
As a buyer, this is also the best time to buy supplies for future delivery. Suppliers will be more than happy to give you the best prices to maintain a positive cash flow.
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