Case Study: Southwest Airlines improves fuel hedging decisions with MathWorks MATLAB

Southwest Airlines Simulates Fuel Market Movements in Hedging Strategy

Southwest Airlines worked with MathWorks to address the challenge of quickly simulating fuel-hedging scenarios based on market data. The airline had previously relied on manual Excel-based analysis to project fuel prices and trade outcomes, which took nearly a full day to prepare for executive strategy meetings.

MathWorks helped Southwest Airlines build a MATLAB-based fuel-hedging app using Database Toolbox, Financial Toolbox, and MATLAB Compiler. The solution automates fuel market data import, scenario simulation, and report generation, reducing analysis time from an all-day process to minutes, improving process efficiency, and enabling faster, more informed hedging decisions for executives.

Southwest Airlines

Luke Moran

Southwest Airlines