One of southwest biggest factors was that because they did not pay there personal as much as the other majors they were more profitable. Because of this they had more cash on hand and were able to hedge fuel at a greater amount then those that were strapped for cash. When Jet fuel started to skyrocket they were locked in a great price and the other majors were suffering. Southwest still has a great business model that the other are now trying to follow.
Here's an article back in 2005 when prices were starting to get out of hand with Jet fuel.
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Hedges also cost money, like any insurance. Some cash-strapped carriers, like Delta Air Lines, have sold their hedges to raise money. Other U.S. carriers, including Continental Airlines, Northwest Airlines and US Airways Group, are opting to forgo hedges and pay market prices for fuel this year. Profitable, low-cost carrier Southwest Airlines still hedges aggressively, however.
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Someone needs to step in and get these prices down or its going to choke the US down to 3rd world status..
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I have seen the enemy and it it us!