Update on AAI

I highlighted Airtran as one of the airlines I liked for a long term position trade. Since that time the AMEX Airline Index (XAL) has declined over 25%. AAI however has held up nicely. In the lower part of the chart I plotted AAI against the Airline Index. You can see how well it has held up. over the recent decline.

AAI is consolidating around $4.00 and now looks like a good time to open up a partial position.