http://pressroom.airtran.com/phoenix.zhtml?c=201565&p=irol-newsArticle&ID=989984&highlight=
AirTran Holdings, Inc., Reports First Quarter Net Income of $2.4 Million
Revenue for the first quarter of 2007 surged to a record $504.5 million while AirTran Airways served a record 5.1 million customers -- or a 13.2 percent increase in customers over the first quarter of 2006. AirTran also reported a nearly 6.0 percent increase in average fare, which, when combined with a 70.1 percent load factor, resulted in the record revenues.
"We are very pleased to report a profitable first quarter -- especially given the fact that the first quarter has been historically challenging for us," stated Joe Leonard, AirTran chairman and chief executive officer. "With the winter storms and the continuing high fuel prices, we are especially proud of our strong operational performance in the face of a very difficult environment. Our Crew Members once again met the challenge and continued to deliver a safe and quality product to our many customers who rely on AirTran Airways every day."
Capacity, as measured in available seat miles, increased 20.5 percent over the same period as last year and reflects the addition of 20 new Boeing 737-700s and two new Boeing 717-200s. Unit revenue, or revenue per available seat mile, was essentially flat, declining less than 0.5 percent year over year on a 5.3 percent increase in stage length.
For the third year in a row, the Airline Quality Rating report, issued by the University of Nebraska at Omaha and Wichita State University, ranked AirTran Airways second overall in quality among major airlines.
"We are running a great airline with outstanding operational performance, and it shows," commented Bob Fornaro, AirTran's president and chief operating officer. "I first want to thank our tireless and professional Crew Members, who directly contributed to the quarter's results."
"Their dedication and quality service is among the best in the industry and reflects the pride of AirTran Airways as we continue to grow our airline. Our revenue performance was better than expected and reflects a balancing of capacity in the marketplace as well as demand for our product. I am optimistic about the future," stated Fornaro.
In the area of costs, AirTran reported markedly better cost performance across the board. Non-fuel cost per available seat mile (CASM) declined 4.1 percent year-over-year; operating CASM, which includes the cost of fuel, also declined -- notching a 4.7 percent reduction. Stan Gadek, AirTran's senior vice president of finance and chief financial officer, said, "The continued reduction in both operating and non-fuel costs reflects the cost synergies that are being achieved as a result of our growth strategy utilizing the Boeing 737." Gadek went on to note, "As we move into our seasonally strong second quarter, our core financial and operating fundamentals are improving."
Highlights of AirTran Airways' accomplishments during the first quarter and to date include:
AirTran Holdings, Inc., Reports First Quarter Net Income of $2.4 Million
- Fully Diluted Earnings Per Share of $0.03 -
- Record First Quarter Revenue of $504.5 Million -
- Unit Costs Decline 4.7 Percent -
- Non-Fuel Unit Costs Decline 4.1 Percent -
- Record 5.1 Million Passengers -
Revenue for the first quarter of 2007 surged to a record $504.5 million while AirTran Airways served a record 5.1 million customers -- or a 13.2 percent increase in customers over the first quarter of 2006. AirTran also reported a nearly 6.0 percent increase in average fare, which, when combined with a 70.1 percent load factor, resulted in the record revenues.
"We are very pleased to report a profitable first quarter -- especially given the fact that the first quarter has been historically challenging for us," stated Joe Leonard, AirTran chairman and chief executive officer. "With the winter storms and the continuing high fuel prices, we are especially proud of our strong operational performance in the face of a very difficult environment. Our Crew Members once again met the challenge and continued to deliver a safe and quality product to our many customers who rely on AirTran Airways every day."
Capacity, as measured in available seat miles, increased 20.5 percent over the same period as last year and reflects the addition of 20 new Boeing 737-700s and two new Boeing 717-200s. Unit revenue, or revenue per available seat mile, was essentially flat, declining less than 0.5 percent year over year on a 5.3 percent increase in stage length.
For the third year in a row, the Airline Quality Rating report, issued by the University of Nebraska at Omaha and Wichita State University, ranked AirTran Airways second overall in quality among major airlines.
"We are running a great airline with outstanding operational performance, and it shows," commented Bob Fornaro, AirTran's president and chief operating officer. "I first want to thank our tireless and professional Crew Members, who directly contributed to the quarter's results."
"Their dedication and quality service is among the best in the industry and reflects the pride of AirTran Airways as we continue to grow our airline. Our revenue performance was better than expected and reflects a balancing of capacity in the marketplace as well as demand for our product. I am optimistic about the future," stated Fornaro.
In the area of costs, AirTran reported markedly better cost performance across the board. Non-fuel cost per available seat mile (CASM) declined 4.1 percent year-over-year; operating CASM, which includes the cost of fuel, also declined -- notching a 4.7 percent reduction. Stan Gadek, AirTran's senior vice president of finance and chief financial officer, said, "The continued reduction in both operating and non-fuel costs reflects the cost synergies that are being achieved as a result of our growth strategy utilizing the Boeing 737." Gadek went on to note, "As we move into our seasonally strong second quarter, our core financial and operating fundamentals are improving."
Highlights of AirTran Airways' accomplishments during the first quarter and to date include:
- Took delivery of five new Boeing 737-700 aircraft.
- Commenced new service to Daytona Beach, Fla.; Newburgh, N.Y. and Phoenix, Ariz., with the help of NASCAR star Matt Kenseth, New York Mets ace Tom Glavine and Indy Racing star Danica Patrick, respectively for those markets.
- Announced plans to begin service to St. Louis, Mo.; San Diego, Calif.; Charleston, S.C. and Portland, Maine.
- Launched more than 20 new nonstop routes with service expansion from a number of cities, including Orlando, Fla., Baltimore, Md., and White Plains, N.Y.
- Announced expansion of Las Vegas, Nev., service with new nonstop service between McCarran International Airport and Akron/Canton Airport in Akron, Ohio; Central Illinois Regional Airport at Bloomington- Normal, Ill.; Dayton International Airport in Dayton, Ohio; Flint/Bishop International Airport in Flint, Mich.; General Mitchell International Airport in Milwaukee, Wis.; QuadCity International Airport in Moline, Ill.; and Greater Rochester International Airport in Rochester, N.Y. These new routes will begin this summer.
- Re-branded X-Fares program as AirTran U, the airline's discounted standby fare program for college students aged 18-22 -- to engender brand preference at an early age. Started unique contest for college students to post videos on YouTube imitating the Ewe, AirTran U's friendly mascot.
- Launched a unique promotion with Andretti Green Racing and Indy Racing star Danica Patrick for the AirTran Raceway online game.
- Raised our bid for Midwest Air Group to $13.25 per share in January (raised again to $15.00 per share in early April).
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