Alaska Airlines and Horizon Air 2014 Annual Report Download - page 139
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The following table summarizes our projected fleet count by year, as of February 11, 2015:
Aircraft
Actual Fleet Count Expected Fleet Activity(a)
Dec 31,
2013
Dec 31,
2014
2015
Changes
Dec 31,
2015
2016 - 2017
Changes
Dec 31,
2017
B737 Freighters & Combis 6 6 – 6 (3) 3
B737 Passenger Aircraft(b) 125 131 10 141 9 150
Total Mainline Fleet 131 137 10 147 6 153
Q400 51 51 1 52 2 54
E-175(c) ––55 27
CRJ700(c) 88–8 –8
Total Regional Fleet 59 59 6 65 4 69
Total 190 196 16 212 10 222
(a) The expected fleet counts at December 31, 2015, 2016, and 2017 are subject to change.
(b) 2015 changes include the expected delivery of 11 Boeing 737-900ER aircraft offset by the
scheduled return of one 737-400 aircraft to the lessor.
(c) Aircraft are operated under capacity purchase agreements with a third party.
For future firm orders and option exercises, we may finance the aircraft through internally generated
cash, long-term debt, or lease arrangements.
Future Fuel Hedge Positions
All of our future oil positions are call options, which are designed to effectively cap the cost of the crude
oil component of our jet fuel purchases. With call options, we are hedged against volatile crude oil price
increases; and, during a period of decline in crude oil prices, we only forfeit cash previously paid for
hedge premiums. Our crude oil positions are as follows:
Approximate % of
Expected Fuel
Requirements
Weighted-
Average Crude
Oil Price per
Barrel
Average
Premium Cost
per Barrel
First Quarter 2015 50% $105 $4
Second Quarter 2015 50% $97 $3
Third Quarter 2015 40% $98 $3
Fourth Quarter 2015 30% $94 $3
Full Year 2015 42% $99 $3
First Quarter 2016 20% $88 $3
Second Quarter 2016 10% $73 $4
Full Year 2016 7% $83 $3
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