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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (9659)	1/15/2000 4:22:00 PM
From: Ron Bower	Respond to of 78670

"Have you considered how the margins of airlines will fare if oil sustains >$25?" Fluctuations in fuel costs effect ALL airlines. Resulting fare increases would likely mean lower passenger miles and reduced margins. However, the impact is greater on some than others. I considered this when I chose to buy MAIR. They have shown consistent earnings growth over the last six years in spite of fuel price fluctuations because they serve markets with minimal to no competition using fuel efficient planes. Far different than competing on a New York to Paris with a 747. I might be wrong, but I've taken a small position. They are reporting good fare increases in the Dec Q and IMO it will be reflected in earnings. FWIW, Ron