It’s been a dismal year for the airline industry. Several airlines have filed for bankruptcy and stopped flying. The remaining airlines are raising fees (United Airlines and US Airways have matched American Airlines’ policy of charging passengers for their first checked bag), laying off workers, grounding aircraft, reducing service, and loosing money at an unbelievable rate.

Every airline is doing this except for one: Southwest Airlines.

Southwest Airlines CEO Gary Kelly visited Austin Thursday and told the Austin American-Statesman that Southwest will purchase 13 new aircraft this year, and an additional 14 next year. It also plans to add new routes to the system and expects to increase service in the coming year.

“We are expecting to take more market share. We are planning for that,” Kelly said. In addition, Southwest made $43 million in the quarter ending March 31. Compare that to Continental which lost $80 million, American Airlines which lost $328 million, and United which lost $537 million.

How do they do it?

One of the key factors to Southwest’s success has been it’s continuing ability to lock in low fuel prices in advance. Southwest has been locking in fuel prices since the 1991 Gulf War, helping to hedge against increasing prices in fuel. When fuel prices are stable, they get little benefit from the policy, but when prices rise as they have in the past few months, they come out way ahead.

According the article, Southwest has locked in 73 percent of its fuel costs at a price equivalent to $51 for a barrel of oil. The current price for a barrel of oil is $136.74. That means that Southwest is getting a 63 percent discount on almost three-quarters of its oil purchases. It’s like me buying gas for $4 a gallon, while my neighbor gets it for $1.49.

How would you like to be buying gas for $1.49 a gallon right now? That is basically what Southwest is doing.

It is not an industry secret that Southwest has been locking in fuel costs for 17 years. Other airlines have tried to do the same, but have not been as successful.

“There are others in the industry that do hedge their fuel costs,” Kelly said in the article, “but no one doe it to the extent that we do, nor have they locked in the prices that we have locked in.”

While other airlines are charging fees for almost everything, including curbside check-in, checking luggage, snacks, window or aisle seats, or making reservations over the telephone, Kelly said Southwest will not match those charges. As Southwest says on its website, “We despise fees as much as the other airlines seem to love them. So we’ll just keep taking care of you, rather than charging fees for the stuff that should come with your fare in the first place. We believe in not asking you to pull out your wallet every few minutes.”

If I were a shareholder at American, United, Continental, or any of the other major North American carriers, I’d be at the next shareholders’ meeting asking why my airline is not able to match Southwest’s amazing seventeen-year record of locking in low fuel costs. It seems to be a fair question.