Exactly this. Fuel costs for airlines aren&#x27;t reflected in the oil price today, but of the oil price covered by their hedging contracts. Hedging, as you obviously know is a tactic that has the goal of making fuel prices &#x27;flat.&#x27; Gary Kelly architected Southwest&#x27;s fuel hedging strategy and pioneered the practice in airlines; it was the reason Southwest was profitable during the $120 per barrel era. You can bet airlines are loading up now on futures contracts.<p>My point is that fuel surcharges and costs today don&#x27;t reflect the price paid at the pump.