Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Here is the way I see AirTran now:

They are currently profitable and they are upbeat about the way holiday bookings look. Also, the legacy carriers just raised round-trip fares and AAI may be able to follow that raise, which would give a nice bump up to earnings in the current quarter. They are fairly well hedged with regards to fuel prices. They are managing conservatively to stay profitable.
The economy remains weak and fuel prices are again spiking on pure speculation, with no connection to law of supply and demand. Maintenance costs and airport proposed higher landing and takeoff fees are a problem.

My thought is that if they can remain profitable until the economy clearly turns upward, a return to a share price of at least $7 within the next 6 months is very likely. Any thoughts?
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.