Southwest Airlines stock drops 14% in a month due to fuel hedging strategy shift amid rising oil prices

Southwest Airlines' stock fell 14% over the past month, underperforming other major U.S. carriers and the airline sector fund. The decline is mainly due to Southwest discontinuing its fuel hedging program, leaving it fully exposed to rising crude oil prices, which have surged above $86 per barrel. Despite strong operational results and revenue growth, the lack of fuel hedging increases risk as fuel costs rise, pressuring earnings guidance. Investors should watch upcoming fuel cost reports and the airline's next earnings update for signs of recovery or further challenges.