The U.S. airline industry is extremely competitive and highly volatile. The industry is also cyclical, capital and technology intensive, heavily taxed, and heavily regulated, combining for very low profit margins for domestic airlines. Costs have been rising significantly across the industry in recent years and over the past decade, the total financial losses exceeded $50 billion. The increasing cost of fuel has been the primary source of rising costs for the industry, and its volatility makes hedging often inefficient. Fuel costs have risen over 300 percent since 2000.15 Some airlines have been unable to cope with these rising costs, as evidenced by American Airlines’ recent bankruptcy (though significantly affected by high labor costs) and United’s acquisition of Continental. Within the industry, Southwest operates as a low-cost carrier, focusing on profitable point-to-point routes and good customer service. As a result, they operate fewer long-haul routes and tend to avoid some of the more congested airports.