DALLAS (AP) -- Southwest Airlines is selling five aircraft for $175 million and has agreed to lease the planes back from the buyer for 12 years.
The Dallas-based airline also modified its fuel hedge portfolio to limit its exposure from falling oil prices.
The disclosures were made in a Securities and Exchange Commission filing this week.
The company says it entered into a two-part sale and leaseback transaction with an unidentified third party aircraft lessor for the sale and leaseback of Boeing 737s.
Southwest also modified its fuel hedge portfolio -- minimizing fuel hedging losses related to further oil price declines.
The airline estimates its 2009 economic fuel costs per gallon, excluding fuel taxes, to be around $1.80, resulting in an estimated savings of approximately $1.4 billion. That compares to the 2009 fuel price guidance provided by the company in July.
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