Delta: Remember What Gordon Gekko Said

Following a strong fourth-quarter earnings report, shares of Delta Air Lines (NYSE: DAL) are surging almost 7% on what is already double the average daily volume. Making today's gains all the more impressive is the fact that shares of Delta were up about 15% year-to-date heading into Wednesday.That's nice, but it still pays to remember Gordon Gekko's initial reluctance when Bud Fox pitched the idea of taking over Blue Star Airlines. Basically, Gekko said bigger investors than he had been burned by airlines and if the fictitious example doesn't work then consider the fact that even Warren Buffett was lucky to barely eke out a profit a long time ago in U.S. Air (NYSE: LCC).In other words and no pun intended, but airline stocks come with baggage and that baggage makes them risky plays for anyone other than short-term traders. Delta, the largest U.S. carrier, was able to boost fourth-quarter profits despite rising fuel prices by raising fares and reducing the number of flights offered. In a way, that's turning commercial air travel into a commodity and then artificially creating demand by trimming supply. The gambit worked, for one quarter at least, but pesky labor and fuel costs aren't going anywhere anytime soon. In fact, the fuel price ...

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