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AirTran sets Q1 traffic records

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At fuel prices what they are today, I don't think a 90% load factor would make money. Time to buckel down and try to last for the long haul... Nobody has a business plan for $100+ oil....
I think we're probably breaking even at these oil prices. Over 40% of our fuel is hedged between $2.80-$2.90/gallon for the first half of the year.
 
if a legacy airline folds we may see some reregulation. people hate jobs to vanish, especially in an election year. if the fed can justify bear stears' bailout due to economic effect, the airlines are no different.


Boy is that an interesting thought, but I wonder if the size matters?? Ya, skybus, ATA, Aloha, but at what size would they open their eyes?? American, I guess obviously, so what's the size?? Scary idea. Probably right on.
 
PCL.... You obviously haven't seen the company's projected earnings for 08.. $24 million loss for Q1. And a $22 million loss for 08. We "broke even" in Q1 of last year, now we are paying twice as much for fuel. And that doesn't include interest that has to be paid for AAI's debt. Losing $25 million a year probably equates to somewhere around 40-50 million in burned cash... But that really is a wild guess.. Remember, AAI didn't get out of debt with bankruptcy like many of the legacy's did. AAI owes interest on there debt, so they NEED to be making money....................... Citation... For once I actually agree with you. I would lean towards AMR filing ch 11, because they didn't dump there dept in bankruptcy earlier.. But, I think the Legacy's won't start to faulter again until fuel stays at $100+ for a year or more. For once I'm really glad AAI didn't buy MEH, because AAI is going to need all the extra cash they can get for a while. AAI, JB, and especially FRNT could all be hurting in the future because of high debt. My guess would be that FRNT would be the next to go, followed by one of the privately held company's like Spirit or MEH, then AAI or JB.... Unfortunatly, I think VA has enough cash from Branson to last through the long haul. What I do know is that its gonna get ugly...
 
gt1900,

Branson is a pretty smart guy. How long would he be willing to hemmorage cash? He's closed mainline Virgin stores that lost money. Maybe they're next.
 
PCL.... You obviously haven't seen the company's projected earnings for 08.. $24 million loss for Q1. And a $22 million loss for 08.
Oh, I've seen it, I just don't believe it. They're playing the classic expectations game: talk incessantly about how poorly things are going, then when things don't go so bad, the share price makes a big leap on the "unexpected" news. Hundreds of companies do it every quarter. It's just part of the Wall Street game nowadays. I think we'll tread water or lose a few million, but nothing like the $22 million that they're claiming. Time will tell.
 
Alright.... You maybe right. That is what happend in Q1 of 2007.. But I don't see how AAI can make a profit with the price of fuel what it is. Common sense tells me that...... Especially not in Q1. We will know on the 24th....
 
Like I said, I don't think there will be a profit. Probably somewhere between $-9 million and $0. I just don't see a $24 million loss happening.
 

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