Air Wisconsin {United Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	269M	256.1M	5%	1.4B	1.3B	8%
UP | UP ASM (miles)	330M	316.9M	4.2%	1.9B	1.8B	7%
UP | DN Load Factor	81.5%	80.8%	0.7 points	74%	74.8%	(0.8 points)
UP | UP Passengers Enplaned	658,365	627,445	4.9%	3.6M	3.3M	6.8%

Analysis: Air Wisconsin in June posted its slowest capacity growth rate in 2005 as measured by available seat miles (ASMs). At the same time the carrier's traffic growth in June, measured by revenue passenger miles (RPMs), was slightly better than April's 3.5 percent growth rate - the slowest growth rate in 2005 for that key index. For the first time since January, Air Wisconsin had the first positive growth in load factor.

American Eagle (Unit of AMR [AMR]) {American Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	732.8M	569.5M	28.7%	3.7B	2.9B	27.9%
UP | UP ASM (miles)	973.1M	786.6M	23.7%	5.4B	5.4B	23.8%
UP | UP Load Factor	74.3%	72.4%	2.9 points	68.9%	66.7%	2.2 points
UP | UP Passengers Enplaned	1.8M	1.5M	15.4%	9.8M	8.4M	16.4%

Analysis: In its June-over-June traffic report, American Eagle fell back into the growth pattern it set for much of 2004 and the early months of 2005. May remains the carrier's high point for the year on all key traffic indexes. In a filing with the U.S. Securities and Exchange Commission (SEC), AMR estimates that both American Eagle and its American Connection partners flew 3.2 million ASMs in the second quarter and the carriers are expected to fly 12.9 million ASMs in 2005. These same carriers flew 2.3 million RPMs in the second quarter and should fly 8.9 million RPMs this year.

Atlantic Southeast Airlines (Unit of Delta Air Lines [DAL]) {Delta Air Lines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	529.5M	422.3M	25.4%	2.8B	2.1B	30%
UP | UP ASM (miles)	692.1M	558.2M	24%	3.9B	3.2B	20.5%
UP | UP Load Factor	74.8%	74.3 %	0.5 points	71.1%	64.7%	6.4 points

Analysis: While Atlantic Southeast (ASA) has maintained a consistent capacity growth rate in the month-over-month traffic reports, the Delta unit in June had its slowest growth in traffic for the year. Its fractionally better load factor in June-over-June is in sharp contrast to the double-digit improvement posted in the May report. Ray Neidl, an analyst with Calyon Securities, continues to predict a fall bankruptcy filing for Delta due to high fuel prices - unless it sells ASA and Comair.

Comair (Unit of Delta Air Lines [DAL]) {Delta Air Lines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
DN | DN RPM (miles)	544M	580.6M	(6.3%)	3.01B	3.09B	(2.6 %)
DN | DN ASM (miles)	760.4M	779.7M	(2.5%)	4.5B	4.6B	(2.7%)
DN | DN Load Factor	71.7%	75.3 %	(3.6 points)	68.5%	68.7%	(0.2 points)

Analysis: In June, Comair had its largest drop in traffic growth since the weather-and-computer-induced meltdown in December. The 2.5 percent fall in capacity in June was the second lowest mark for the year - exceeded only by the 4.5 percent decline recorded in February.

Delta Connection code-share carriers {Chautauqua Airlines, SkyWest Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
DN | UP RPM (miles)	349M	356M	(2%)	1.9B	1.2B	56.5%
DN | DN ASM (miles)	459M	461.2 M	(0.5%)	2.7B	2.7B	(1.5%)
DN | DN Load Factor	69.2%	82.5%	(13.3 points)	71.4%	74.9%	(3.5 points)

Analysis: Delta is giving its code-share partners less flying to do this year compared to last June. Chautauqua and SkyWest together flew 24.5 percent of the regional RPMs compared to 26.1 percent last June. The two carriers provided 23.8 percent of the regional capacity in June compared to 25.6 percent last June.

ExpressJet [XJT]) {Continental Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	806.2M	680.3M	18.5%	4.1B	3.4B	21.8%
UP | UP ASM (miles)	1B	883.3M	19%	5.7B	5B	15.3%
DN | UP Load Factor	76.7%	77%	(0.3 points)	72.8%	68.9%	3.9 points
UP | UP Block Hours	71,696	63,091	13.6%	398,728	353,156	12.9%

Analysis: ExpressJet's near 14 percent growth in block hours is on target, according to estimates prepared by James Parker of Raymond James. ExpressJet accepted delivery in June of two additional ERJ 145XRs, which brings the carrier's fleet to 256 regional jets.

Horizon Air (Unit of Alaska Air Group [ALK]) {Alaska Air, Frontier Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	221.3M	199.1M	11.1%	1.1B	984.6M	17.7%
UP | UP ASM (miles)	290.4M	272.8M	6.4%	1.6B	1.4B	9.9%
UP | UP Load Factor	76.2%	73%	3.2 points	71%	66.3%	4.7 points
UP | UP Passengers Enplaned	576,400	533,600	8%	3.1M	2.7M	14.8%

Analysis: Horizon Air posted its lowest growth rate of 2005 in RPMs in its June-over-June traffic report. In an SEC filing after it released the June traffic report, Alaska Air Group predicts that capacity for the year will grow by 6.9 percent - a rate considerably slower than the current rate of 9.9 percent. Horizon will not be adding any additional aircraft during the remaining months of 2005.

Jazz (Unit of Air Canada [ACE]) {Air Canada}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	214M	156M	37.2%	1B	820M	22.7%
UP | UP ASM (miles)	285M	230M	23.9%	1.4B	1.3B	4.7%
UP | UP Load Factor	75.1%	67.8%	7.3 points	71.6%	61.1%	10.5 points

Analysis: In June, Jazz doubled its capacity growth over what it posted in May as it put two new CRJ 705s into service. The carrier has ordered 15 of these 75-seat Bombardier RJs. The 37 percent growth in traffic was the largest month-over-month gain in 2005.

Mesaba Aviation (Unit of MAIR Holdings [MAIR]) {Northwest Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
DN | UP RPM (miles)	177.3M	183.6M	(3.5%)	990.2M	855.3M	15.8%
DN | UP ASM (miles)	248.8M	252.9M	(1.6%)	1.5B	1.3B	11.3%
DN | UP Load Factor	71.3%	72.6%	(1.3 points)	65%	62.5%	2.5 points
UP | UP Passengers Enplaned	529,290	512,812	3.2%	2.8M	2.5M	11.8%

Analysis: Now that fallout of Mesaba's near-strike in January 2004 is fully flushed from the month-over-month traffic reports, the carrier is in a no growth mode. It reported its first traffic and capacity decline in 2005. The carrier is gearing up for the arrival for its first CRJ 200s later this year.

Mesa Air Group [MESA]) {America West Airlines, United Airlines, US Airways}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	585.1M	523.4M	11.8%	3B	2.4B	24.6%
UP | UP ASM (miles)	787.2M	679M	15.9%	4.3B	3.5B	22.4%
DN | UP Load Factor	74.3%	77%	(2.8 points)	71.3%	70.1%	1.3 points
UP | UP Passengers Enplaned	1.2M	1M	17.6%	6.5M	4.9M	31.1%

Analysis: In its most recently completed fiscal quarter, capacity grew by 24 percent at Mesa, which is 2 percent more than what had been projected by analyst James Parker. Mesa has not announced when it will shift 59 RJs from US Airways to United and Delta.

Midwest Connect (Unit of Midwest Air Group [MEH]) {Midwest Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	21.4M	17.9M	19.5%	116M	93M	24.7%
UP | UP ASM (miles)	31.7M	30.1M	5.3%	189.7M	174M	9%
UP | UP Load Factor	67.7%	59.6%	8.1 points	61.2%	53.5%	7.7 points
UP | UP O&D Passengers	73,246	58,058	26.2%	397,411	320,733	23.9%

Analysis: While Midwest Connect improved its load factor by 8.1 points, its revenue yield was down 0.6 percent compared to last June. Its financial performance was better than its sister carrier, Midwest Airlines, which recorded a 2.7 percent decline in yield.

Pinnacle Airlines [PNCL] {Northwest Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	393.2M	270M	45.6%	1.9B	1.2B	53.7%
UP | UP ASM (miles)	504.8M	345.5M	46.1%	2.7B	1.8B	53.3%
DN | DN Load Factor	77.9%	78.2%	(0.3 points)	68.7%	68.5%	(0.2 points)
UP | UP Block Hours	38,000	26,541	43.2%	210,444	140,435	49.9%
UP | UP Passengers Enplaned	749,756	596,214	25.8%	3.7M	2.8M	32.7%

Analysis: Even as Pinnacle accepted three more CRJ 200s in June, it recorded its slowest growth rate in 2005 as both traffic and capacity growth fell below 50 percent for the first time this year. However, Pinnacle was still the second fast growing regional carrier. Only US Airways Express grew faster.

Republic Airways [RJET] {American Airlines, Delta Air Lines, United Airlines, US Airways}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	391.4M	271.9M	43.9%	2B	1.4B	47.2%
UP | UP ASM (miles)	536.6M	376.4M	42.6%	3B	2.1B	37.6%
UP | UP Load Factor	72.9%	72.2%	0.7 points	69.4%	64.9%	4.5 points
UP | UP Passengers Enplaned	803,362	615,109	30.6%	4.3M	3.1M	41.3%

Analysis: In June, Shuttle America began flying Embraer 170s as part of Republic's United Express code-share partnership. Acquired by Republic in May, Shuttle America will continue to fly its Saab 340s until the end of the year. Chautauqua, another Republic unit, will continue to fly the 70-seat RJs until these planes and pilots are all transferred to Shuttle America.

SkyWest Airlines [SKYW] {Continental Airlines, Delta Air Lines, United Airlines}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	685.8M	473.7M	44.8%	3.5B	2.4B	44.4%
UP | UP ASM (miles)	869.4M	610.7M	42.4%	4.7B	3.4B	39.3%
UP | UP Load Factor	78.9%	77.6%	1.3 points	74.3%	71.7%	2.6 points
UP | UP Passengers Enplaned	1.4M	1.1M	26.8%	7.8M	6M	30.3%

Analysis: June marked the end of the code-share agreement SkyWest had with Continental Airlines as the regional carrier completed a three-month transition in handing over the Embraer 120 routes to Colgan Air. In June, SkyWest accepted four new CRJ 700s, which it began flying as part of its United Express contract.

US Airways Express (Unit of US Airways [UAIRQ]) {MidAtlantic Airlines, Piedmont Airlines, PSA}
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP | UP RPM (miles)	341.7M	183.2M	86.4%	1.7B	786.7M	118.3%
UP | UP ASM (miles)	488.4M	271.1M	80.1%	2.7B	1.3B	101.4%
UP | UP Load Factor	70%	67.5%	2.4 points	63.1%	58.2%	4.9 points
UP | UP Passengers Enplaned	898,451	656,407	36.9%	4.6M	3.1M	46.5%
UP | UP Average Trip (miles)	380.4	279.2	36.2%	369.7	248.1	49%

Analysis: For the first time in 2005, US Airways Express did not post triple-digit traffic growth. However, while the three company-owned regional units collectively increased their traffic by 86 percent, the RPMs at the mainline dropped by 0.1 percent. In June, US Airways agreed to sell MidAtlantic to Republic Airways. The deal includes all of the Embraer 170s that MidAtlantic have been flying. The planes will still be part of the US Airways Express fleet.

Independence Air [FLYI]
June Trend | Year-To-Date Trend	June 2005	June 2004	Percent Change	Year-To-Date 2005	Year-To-Date 2004	Percent Change
UP RPM (miles)	332.2M	898.5M	1.4B	311.7M	254.6M	255.9M
UP ASM (miles)	436M	1.2B	2.2B	427.4M	371M	361.8M
UP Load Factor	76.2%	72.6%	67.1%	72.9%	68.9%	70.7%
UP Passengers Enplaned	436,079	1.5M	2.8M	535,262	507,986	515,611

Analysis: Although Independence Air posted a 76.2 percent load factor - 6.2 points higher than predicted - analyst James Parker still believes the carrier will run out of cash in the third quarter and file for Chapter 11 protection. The higher occupancy rates are being driven in part by fare sales that don't cover higher fuel prices. To keep filling the planes, Independence Air has extended a cut-rate ticket sale from Independence Day weekend to the end of September.

( ) Indicates corporate affiliation. { } indicates code-share partnerships.

Sources: Company reports, Calyon Securities, Raymond James