I've been slowly buying AAI the last couple of days and bought a lot this morning. I actually own more AAI than LCC at this point.
The reason is the charts. While investors are rightfully rewarding LCC for its vastly improved financial results, they're totally dissing AAI. This is wrong: the same reason LCC is doing well -- huge increases in East Coast RASMs -- is the reason why AAI is doing well.
First of all, anything Leonard told me (even to my face) I wouldn't believe. That guy doesn't know the first thing about how to run an airline. I would rank Neeleman above him as a real airline CEO. (For the record I think Neeleman is a HELL of a startup airline CEO, but he lacks the foresight to keep one running beyond 5-7 years). To answer your question, Joe Leonard didn't tell me a thing. You can go ahead and dismiss me now since I won't tell you how I know this info, I don't care. The truth is that I am right and one day you will all see it.
AAI simply corrected to where it should have been in the first place given their results of late.
Price to sales of AAI and LCC are now equal.
AAI forward PE still shows some downside against peer group.
AAI has an image problem still and no brand loyalty. Their product is simply "OK" but customers would leap to the nearest competitor in a heartbeat for a lower or equal fare. OK product goes nowhere these days where you either need to the cheapest or have a great product.
It just does not appear they have a plan to speak of despite reacting to everyone else.