AAI: Airline Jet Fuel Play

Discussion in 'Stocks' started by Apex Capital, Oct 4, 2005.

  1. Great company with a nice market niche.
    Broke out above $12.00
    Check the chart.
  2. GTC


    AAI have pre purchased fuel for $66 (or more) per barrel for the rest of the year in anticipation the oil price will go high. Interesting the oil price is now under $66 per barrel. It will be interesting to see how it affects AAI's stock. Fundamentally they are not a good company---but technically they have recently done well as a small airlines.
  3. AAI does not purchase fuel at $66.00 per barrel.

    They purchase JET FUEL, and they do so by aggressively HEDGING their fuel consumption strategy. The more profitably and less financially strapped air-carriers like SWA and JetBlue and AAI hedge very aggressively as opposed to the larger mainstream carriers like Delta, UAL, and NWA.
  4. AirTran (AAI) is the WORST airline in the USA. if you have ever flown them, you will know what i am talking about. i flew them about 8 times (RT) back in college because i was a poor student but now that i am working, never again will i endure AirTran aka ValueJet.
  5. What are you talking about. AirTran rocks! With flights starting at $49, who cares about service.

    When will people finally realize that the purpose of an airline is to transport people fast to and from long-distances. Services and other frills are bullshit marketing attempts use to create the appearance of value. But in the end its price that trumps all.
  6. toc


    Accurate fuel hedging can add upto 16% to the value of any airline organization. Any airline should take this to stride. The real problem with airlines is the overcapacity, unions raping the balance sheets, and internal inefficiencies abound in work force.

    Warren Buffet does not like to invest in airlines as he thinks it is one of the most 'inefficiently' run industries. Many a times companies like AA and United are flying nearly full planes but still losing money on that route................got to stay away from such 'synergies of losses'.

    Since 9-11 attack airlines have lost more than they made in last 20 years, guess Federal government will not bail them out or it can't with $200B promised to New Orleans and $4B spilling away per month in Iraq. Two unforced errors a) Iraq war and b) not strenghtening the Levy's of NO 'cause funds were diverted to Iraq war.............these two have ended up costing US half trillion dollars. George Bush bankrupted 3 companies before he became Texas governor and now he is doing everything to Bankrupt USA. This is very very scary scenario.
  7. empee


    airtran has changed alot through bankruptcy, they used to suck dirty etc but now they are probably the best airline i have been on, free xm radio too boot check 'em out u will be shocked its totally different now.. i accidentally booked a trip on them (free ticket) and i was like omg but u will be totally shocked.

    new planes, etc.
  8. GTC


    Recently, AAI have been able to quickly put new flights for the routes which the other airlines' cancelled. In short terms, AAI's stock have the potential to get close to Southwest's.
  9. Yep.

    AirTran has certainly improved and picking up the cancelled routes/flights of other more financially strapped air carriers is really gonna help their bottom line going forward. This is a neat little trading stock that has a very nice uptrend established that one can buy on dips, in my opinion.
  10. Babak


    Nice call Apex :)
    #10     Oct 6, 2005