ANOTHER UGLY DATA POINT

For the second consecutive month, the number of enplaned/deplaned passengers at McCarran Airport declined more than 15%. This isn’t exactly a silver lining, but our model predicts Strip revenue to decline by “only” 13%, assuming normal hold percentages. January’s Strip revenue fell 15%. Despite strong table play, February 2008 was hurt by a low slot hold percentage and a slightly bad luck on the tables. Traffic through California should be significantly less bad than the visitation via McCarran due in part to lower gas prices. The first chart provides the monthly McCarran trends. The second details our projections for the key February metrics.