FRIENDLY SKIES

More planes will have more seats full this July than any other July in history. Five major carriers just increased fares $50 each way! This is the seventh system wide increase this year and it has not slowed demand.

I hope you all appreciate the investment significance. The recent slow down in the economy was putting fear in the hearts of many an investor. Certainly the airlines need several more strong years to repair their balance sheets. A severe downturn now would tough to survive. Today's fare increases shows that the airlines see much strength ahead.

I continue to believe that AMR and CAL will trade at more than $100 per share when the market realizes how strong the international travel market has become.