Southwest Used A Ship To Send Jet Fuel From Texas To California As Prices Rose

According to CNBC, Southwest Airlines hired a ship this spring to move jet fuel from Texas to California as West Coast prices climbed and supply concerns increased, marking a first for the Dallas-based carrier. CFO Tom Doxey said the shipment brought about a week's supply to the West Coast when supply was most constrained and at risk. Southwest said the vessel left Houston, passed through the Panama Canal and arrived in Los Angeles on May 28 with about 12.6 million gallons aboard. The airline said it used a Jones Act waiver for the shipment, and President Donald Trump waived that requirement in March as fuel prices soared after the start of the Iran war and shipping snarls emerged in the Strait of Hormuz. Southwest also said its fuel expenses were up nearly $900 million in the second quarter from a year earlier. United Airlines said last week that it is using the latest available fuel prices for its quarterly estimates because of volatility, and its July 15 report said jet fuel increased $575 million, or a $1.12 hit to adjusted earnings, for the third quarter alone.