Ep.295 Southwest’s Quiet Edge: Hedging When It’s Uncool

Southwest’s Quiet Edge: Hedging When It’s Uncool In boom years, Southwest Airlines did something competitors mocked: they hedged fuel. By locking in prices ahead of time, they paid a small, predictable cost—and dodged massive losses when oil spiked. While rivals bled, Southwest stayed steady. That’s the power of hedging. It’s not fortune-telling. It’s risk transfer. Today’s move: ✅ List your most volatile input (ad costs, raw materials, currency). ✅ Explore simple hedges—annual v...