FIVE AIRLINES IN OUR TOP TEN PERFORMERS

My family owns 5 airline stocks and they are all included in our top ten performers this morning. NWAC is up the biggest percent today and this stock is up 34.46% since January 31, 2005!

This morning, a Wall Street Journal article included a chart showing the highest revenue seat miles ever. More importantly the chart also showed the highest load factors ever!

Having operated a resort condominium rental business, I am well aware of the way prices are set. On many occasions, we have found demand to be so strong for certain weeks of the year that we have been able to raise our price 20% or more above what the last person paid. The next year, we raise the price on all units for that week. The airlines are about to be in the position of being able to raise fares on all future seats.

Another post this morning was about expedited security checks. In Orlando Florida, a private company has teamed with the government to offer secure "boarding passes". Regular passengers pay $79 per year for the pass which allows expedited entry. Even those who do not purchase the pass will benefit. They may be in the back of the line but the line will be shorter.

The legacy airlines have made a nice run while the general financial conditions are still bad. Should you decide to buy at current prices, be sure to split your purchases between several carriers. NWAC is our fast mover right now but the company could still face bankruptcy. DAL is still on the precipice of bankruptcy. DAL and NWAC have a sound argument for deferment of pension costs. They have not used the bankruptcy courts to drop pensions on the tax payers as did UAL and USAir.

We have not bought shares in the bankrupt carriers. It is not clear how current shareholders will do. UAL has been strong lately but is still selling for a dollar and change. After it emerges from bankruptcy, we will take a look.

We did purchase shares in AWA. If the merger goes through, we will own shares in USAir. To avoid as much litigation as possible, USAir must offer others the chance to bid. Bond holders who hoped to own the company now have the chance. I believe the patch work of investors that USAir has put together will stand-up. I believe the merger with http://www.google.com/search?oi=stock&q=stocks:AWA will go through and USAir will survive for at least another 10 years.

BULL MARKETS ARE FUN! OUR AGRESSIVE ACCOUNT IS UP 2.3% TODAY! BUY THE BULL! THE MAJOR AVERAGES HAVE NOT BROKEN THROUGH TRADING RANGES BUT THE PRESSURE IS REAL!