During the first quarter, Southwest spent $300 million on jet fuel at a hedged price of $60 a

barrel (or less). At the same time, Southwest's competitors had to pay spot prices of around $120

a barrel for jet fuel. During that quarter Southwest's accountants reported a profit of $34 million.

If you were a Southwest shareholder during this period, should you be happy with these

"profits?" Hint: calculate Southwest's economic profit and discuss using terms from class.