AirTran seeks to reassure investors it has cash

[Eagle757shark]

AirTran seeks to reassure investors it has cash

Fri Apr 11, 2008 6:39pm EDT
WASHINGTON, April 11 (Reuters) - AirTran Airways, a unit of AirTran Holdings (AAI.N: Quote, Profile, Research), said Friday its liquidity has improved, boosting the company's cash and investments holdings to $358 million on March 31, 2008, compared with $326 million at the end of 2007.
"We have ample balance sheet strength to support our operation," AirTran Airways chief executive Bob Fornaro said in a statement.
The company expects its liquidity to strengthen further in the second quarter of 2008.
AirTran issued the statement after its shares fell sharply Friday on news of Frontier Airlines Holdings Inc's (FRNT.O: Quote, Profile, Research) bankruptcy filing and continuing maintenance problems at other airlines that have grounded thousands of flights in recent days. AirTran ended trading on the New York Stock Exchange down 34.5 percent at $4.13 per share. (Reporting by Julie Vorman; Editing by Andre Grenon)

 

[Eagle757shark]

One thing that AirTran has in its favor is Aircraft orders. Since AirTran purchased their 737s at a great rate, turning around and selling those airplanes will help AirTran raise cash. In the short term while fuel is at an all time high, those airplane orders may be a blessing. AirTran was able to go from $326 million in cash at the end of 2007 to $358 million in cash at the end of the 1st quarter. Now that it looks like the Delta and Northwest merger will happen really soon, AirTran will be able to see how the consolidation dance shakes up and who their potential dance partner may be. The key for all airlines is to hunker down and live to dance another day. Right now AirTran has a way to raise cash, selling new aircraft that they have ordered.

 

[D-Bo]

One thing that AirTran has in its favor is Aircraft orders. Since AirTran purchased their 737s at a great rate, turning around and selling those airplanes will help AirTran raise cash. In the short term while fuel is at an all time high, those airplane orders may be a blessing.

It's been said more than once before that the large 737 order is what helped AAI get into this mess in the first place.

 

[CatfishVT9]

Sooooooo.........ordering airplanes caused the dollar devaluation, stock market fall, stupid loan practices and F-in oil speculators to push oil to $110 a barrel?????????????

I must be missing something.

 

[c9skytrain]

D-Bo, Who said that before? Got a link showing such a statement? I'm just curious.

 

[D-Bo]

Sooooooo.........ordering airplanes caused the dollar devaluation, stock market fall, stupid loan practices and F-in oil speculators to push oil to $110 a barrel?????????????

I must be missing something.

Having too many airplanes and not enough routes where they can make money is what you're missing.

 

[D-Bo]

D-Bo, Who said that before? Got a link showing such a statement? I'm just curious.

Bethune in 04.

 

[Ty Webb]

Bethune in 04.

Looks like this Village has a new Idiot. All Hail D-Bo . . . . flightinfo's newest tool. Thank god you're not on our seniority list. . . . . doom and gloom- you're management's wet dream. A bona fide "Useful Idiot".

AirTran has been profitable every year since 2000. We make most of our money in the 2nd and 4th quarters, which means we will be improving our cash position for the next three months, and six months later, we'll be rebuilding whatever we lose in the 3rd quarter (if anything).

We'll be s#!tt1ng in tall cotton . . . You, on the other hand, will still be an Idiot.

 

[Eagle757shark]

Having too many airplanes and not enough routes where they can make money is what you're missing.

AirTran is nimble and can make adjustments according to the economy pretty well. The airline has been doing that over the last 8 years. When AirTran purchased their 737's, the market was pretty dead back in 2003. They were able to get them at a premium price. In today's market taking delivery of those aircraft and then selling them to make a profit allows AirTran to raise cash. Right now that may be turning out to be a blessing for AirTran. The airline is scheduled to take 8 airplanes this year. Everytime AirTran takes a new airplane, they have to write Boeing a check for 8 million dollars. Now if they are able to turn around and sell that aircraft on the open market at a profit, how is that a bad thing in this current economy? Every airline is trying to make adjustments in their business plan because of the high cost of fuel. This summer is going to be a tough summer for all business'. I believe the talked about consolidation will kick-off here real soon. Then hang-on because it is going to be one HELL of a RIDE!

 

[D-Bo]

Looks like this Village has a new Idiot. All Hail D-Bo . . . . flightinfo's newest tool. Thank god you're not on our seniority list. . . . . doom and gloom- you're management's wet dream. A bona fide "Useful Idiot".

AirTran has been profitable every year since 2000. We make most of our money in the 2nd and 4th quarters, which means we will be improving our cash position for the next three months, and six months later, we'll be rebuilding whatever we lose in the 3rd quarter (if anything).

We'll be s#!tt1ng in tall cotton . . . You, on the other hand, will still be an Idiot.

You're confusing doom and gloom with the truth. try your best to talk sh*t. But while you're at it, prove me wrong. Fact is back in 01 and 02 many of the LCCs smelled blood in the water. They thought the legacies were going out of business and thought they'd put themselves in a position to pick up the scraps. When that didn't happen many of them had to find somewhere to make money with all these new jets. That's when business got tougher.

F9 sees it now. B6 sees it now. You can fly only so many flights out of JFK, DEN, and ATL and make money consistently with large airlines matching the price in this economy...or keep cash on hand at a high level.

So, in the mean time, dispute my point or STFU. And trust me. You'll be better off if you lose the emotional attachment to your airline. All they do is pay you. They aren't your family. And they aren't above F'n you over or getting into a bad position cash or business wise.

 

[D-Bo]

AirTran has been profitable every year since 2000.

Nice. So I guess that all but guarantees future success? D head. Look, I wish you guys the best but you seem to be another one of those pipe smokers that thinks his airline is immune to all of this sh*t. You're not. Trust me.

 

[D-Bo]

I believe the talked about consolidation will kick-off here real soon. Then hang-on because it is going to be one HELL of a RIDE!

We agree there. This era in our industry will be talked about for decades. Nothing nice.

 

[PCL_128]

Having too many airplanes and not enough routes where they can make money is what you're missing.

Our RASM is up 7% in the first quarter. Advanced bookings through the fall are even higher than last year's record numbers. We're doing just fine, but thanks for your concern.

 

[D-Bo]

Our RASM is up 7% in the first quarter. Advanced bookings through the fall are even higher than last year's record numbers. We're doing just fine, but thanks for your concern.

I'm not into all these figures. Not management. I'm just a pilot. You sorta sound like the F9 guy pumping up because traffic was up. But since you brought it up, what's your yield per seat mile compared to what it was a few years ago? I guarantee that's not up 7% if anything at all. These days, RASM and load factor are useless numbers. What's at the bottom of the balance sheet and cash balance is what matters.
Again, good luck. The whole industry needs it.

 

[Wesb737fo]

D-bo,

No offense, but I think everyone is getting tired of being told their airline is going out of business. Yes we all read the papers. Yes we all know that unless you are at SWA, FDX, or UPS, the world is very uncertain.

Our friend Ty seems to wear his emotions on his sleeve at times, but your post had a hint of " I'm junior at a legacy and I hope all the LCC's go away (excluding SWA, hope all you want, but that's the 800-lb gorilla).

 

[PCL_128]

I'm not into all these figures. Not management. I'm just a pilot.

If you don't understand simple financial figures, then maybe debating the viability of a business isn't up your alley.

You sorta sound like the F9 guy pumping up because traffic was up. But since you brought it up, what's your yield per seat mile compared to what it was a few years ago? I guarantee that's not up 7% if anything at all. These days, RASM and load factor are useless numbers. What's at the bottom of the balance sheet and cash balance is what matters.
Again, good luck. The whole industry needs it.

We don't have figures for the yields at this point. We have hints of our financial performance, though. RASM is up 7% for the quarter. CASM excluding fuel is up 0.5%. Cash on hand has increased by about $30 million during the first quarter. These numbers don't point to any sort of financial meltdown, no matter how much you're salivating at the idea.

 

[curtis46]

D-bo why don't you tell us for whom you fly.unless you're with SW you're the one who should STFU.

 

[PCL_128]

Based on past posts, it would appear that he works for Yo-nited. Hate to break it to you, D-bo, but your company will probably be in Chapter 7 long before we see Chapter 11.

 

[Colonel Savage]

So I guess that all but guarantees future success?...but you seem to be another one of those pipe smokers that thinks his airline is immune to all of this sh*t.

No, no one has said any of those things. You're making @hit up in order to be a pain. What has been said it that it is too soon to be writing AAI off as a BK case...big difference!

 

[Colonel Savage]

Based on past posts, it would appear that he works for Yo-nited.

No wonder he's insecure.

 

[RIDETHELIGHTING]

Man Bo you are one whiney b!tch.

 

[D-Bo]

D-bo,

No offense, but I think everyone is getting tired of being told their airline is going out of business. Yes we all read the papers. Yes we all know that unless you are at SWA, FDX, or UPS, the world is very uncertain.

Our friend Ty seems to wear his emotions on his sleeve at times, but your post had a hint of " I'm junior at a legacy and I hope all the LCC's go away (excluding SWA, hope all you want, but that's the 800-lb gorilla).

You couldn't be further from the truth. I've been furloughed before. I know how it is. Just too many folks look at these airlines like their favorite football or basketball team. Everything I say about these other airlines applies to my own.

 

[D-Bo]

Based on past posts, it would appear that he works for Yo-nited.

I shouldn't be surprised you'd resort to that. Good job.

 

[D-Bo]

No wonder he's insecure.

Not at all. What would give you that idea. Here you guys are trying your best to make it personal. I said I wish you guys the best. I honestly mean it. So why all the sh*t talking? I'm talking about airlines and this industry. So why try to get personal with me? If that's your thing go for it. It's not mine.

 

[D-Bo]

No, no one has said any of those things. You're making @hit up in order to be a pain. What has been said it that it is too soon to be writing AAI off as a BK case...big difference!

I wouldn't make that up for the heck of it. Discount it though. It was said though. I won't bring it up again.

 

[D-Bo]

Based on past posts, it would appear that he works for Yo-nited. Hate to break it to you, D-bo, but your company will probably be in Chapter 7 long before we see Chapter 11.

I hope that made you feel better. Go back and read my 285 post and try to find one before this thread where I mentioned Airtran. Got nothing against you guys. Been through what all of you are going through now. I managed because I didn't try to sugarcoat what a debacle the airline that furloughed me was and what this industry was to all of us pilots. I realized we are all just blue collar workers and when it comes down to it, all airline management will try to treat us as such.

Gotta say though, I am disappointed you made it personal. I really am trying to give you good advice. One of my good friends works at Airtran. I don't have a single thing against Airtran. Looks like you have a problem with more than just UAL though. That's regretful.

 

[D-Bo]

Man Bo you are one whiney b!tch.

Whiney? Point out where I complained.

 

[D-Bo]

Based on past posts, it would appear that he works for Yo-nited. Hate to break it to you, D-bo, but your company will probably be in Chapter 7 long before we see Chapter 11.

And for the C7 thing, maybe you'll be right. I almost hope you're right. I don't give a F about UAL. I'm not under the allusion they give a F about me. There are a lot of folks out there that hope UAL goes C7 though. Despite what you may think, I've never wished that on any other airline like it appears you do.

 

[PCL_128]

And for the C7 thing, maybe you'll be right. I almost hope you're right. I don't give a F about UAL. I'm not under the allusion they give a F about me. There are a lot of folks out there that hope UAL goes C7 though. Despite what you may think, I've never wished that on any other airline like it appears you do.

My best friend is a junior UAL pilot possibly looking at a furlough, and many other friends are there also. I have no ill will towards UAL at all, and I really do hope they survive. However, I do think it's true that UAL will be in bankruptcy long before we are. But let's be honest here: go back and read some of your posts and do an honest assessment about whether they sound vindictive towards AirTran. I think it's obvious that they appear quite hostile. Maybe that wasn't your intent, but it sure seemed that way.

 

[jehtplane]

D-bo,

No offense, but I think everyone is getting tired of being told their airline is going out of business. Yes we all read the papers. Yes we all know that unless you are at SWA, FDX, or UPS, the world is very uncertain.

Our friend Ty seems to wear his emotions on his sleeve at times, but your post had a hint of " I'm junior at a legacy and I hope all the LCC's go away (excluding SWA, hope all you want, but that's the 800-lb gorilla).

I second that. D-never had a boner get a life