DALLAS (AP) - Southwest Airlines has "very limited financing needs" and little immediate exposure to the turmoil in the financial markets, the chief financial officer said Wednesday.
Laura Wright said Southwest, which enters fuel-hedging transactions with financial-services firms as counterparties, has no exposure to bankrupt Lehman Brothers and only a small amount to brokerages that don't have a commercial banking side.
Wright said Southwest, which reported about $5.8 billion in cash and short-term investments on June 30, has enough cash set aside to cover about 85 percent of its fuel-hedging positions.
Southwest, the only major U.S. airline to remain profitable this year because of those hedges, which reduce the price it pays for fuel, has slowed growth and deferred aircraft it planned to buy in 2009.
The Dallas-based carrier has bought 26 new jets this year and has three more deliveries scheduled before year-end, but Wright said the strike at supplier Boeing Co. has put those deliveries in doubt.
Wright, speaking during a company meeting with reporters, said Southwest also has an unused $600 million line of credit and believes it could tap European bank credit markets, as it did this spring.
Southwest debt is rated "A-minus," still investment-grade, by Standard & Poor's and Fitch Ratings, and "Baa1" by Moody's.
The company has hedged against 80 percent of its fuel needs for the fourth quarter at an average price equivalent to $58 per barrel fuel, and is more than 70 percent hedged next year at $66 per barrel, Wright said.
The company reports third-quarter results on Oct. 16.
Shares of Southwest Airlines Co. fell 23 cents to $14.28 in morning trading.
No hay comentarios:
Publicar un comentario