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With airlines they seem to have a cunning charm about them. No matter how many times I get burned by them, no matter how many times I quote Warren Buffet about not investing in airlines, I can't seem to NOT keep investing in them! Unfortunately airlines are one industry I like and know. I guess hope always springs eternal in the airline investing area!

Author is long JBLU, AAI and LUV!

There may be money to be made as a trader, but as a long term buy and hold this industry is brutal. More than brutal.

I used to be long Jetblue. I figured they had lower costs and a better product, and that their better product translated into better revenues. Thus if the rest of the industry broke even they would make a tidy profit and I would make a nice gain on my investment.

I was wrong. This industry abhors a profit and every company is willing to sacrifice itself to be sure that no other company runs a profit. If your competition isn't profit motivated you just can't play the game!

As far as being long LUV, I've warned in the recent past on TMF boards that is a bad idea. Their fuel hedges, which will expire one day, are the only thing keeping them profitable. Once oil normalizes for a year or two they will be in the same boat as everybody else. Their long history of profits (amazing in this industry) will be over. Their competition has gotten leaner and meaner.
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