Subject: Re: Delta a Weschler pick?
I was turning that over in my mind for the past few weeks and was considering investing in Delta but I had not yet done so simply because despite the phrase, it is really hard to get over my aversion to investing in airlines. I don't think I will invest in Delta because I am smart enough to figure out the implications of investing in a credit card company that owns and operates airplanes, but I wouldn't be surprised if people smarter than me could get comfortable with it.

That's how all of the major airlines work. They make most of their money selling frequent flier miles to banks. They fly airplanes at a slight profit or maybe break even in order to create demand for their frequent flier miles.

Delta's market cap is $46 billion. Its frequent flier program is valued at $31 billion.


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