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Author: Nuke68 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 470  
Subject: Re: strong results Date: 1/27/2010 8:44 PM
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I agree with you in that AirTran stock should be seeing growth. They look to be in a good position to take advantage of any uptick in air travel. A couple of reasons that the stock may not be increasing quickly:

1. Allegiant Airlines has moved some of their flights from a secondary airport near Orlando to Orlando Airport. This puts them in direct competition with AirTran on several of their routes. Allegiant does a great job in flying less-than-daily flights to markets and has lower costs than AirTran. Allegiant has also purchased about 13 aircraft which is a huge percentage gain in their capacity. If they put this capacity in Orlando, this could affect AirTran profits.

2. Southwest is a huge competitor in Orlando and JetBlue looks like they are starting to focus on Orlando also. All this competition in one of their major hubs with Milwaukee (another small hub) competition growing with Frontier Airlines, is probably tempering long term outlook.

3. If Delta Airlines is successful in their integration of Northwest, they may start competing more aggressively with AirTran in Atlanta.

It would be nice to see AirTran stock take off, but there are many factors that may affect them.


Author does not own AirTran but is constantly looking at it as an investment.
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