AAI Reports Loss

[roughneck]

This is from the SWA earnings release.

Excluding special items in both periods, operating income was $110 million for first quarter 2011, compared to $102 million for first quarter 2010.

This is from today's AirTran release.

we reported a first quarter 2011 operating loss of $36.7 million compared to operating income of $3.0 million for the three months ended March 31, 2010

If you want to really look at the strengths of each company, the strength of the network, the brand value, and the overall "worth" of a company you look at how they do operationally. These numbers are where the real story is.

AirTran is a good company and has had a decent run but the future was not bright. All ancillary revenue pipelines had played out and the competition had chocked off any future growth. There wasn't money in the bank for planes and oil isn't going down soon. SWA was and is the White Knight in the AirTran story.

Lets work this out and get on with SWA's domination of the World.

 

[SWA/CA]

AirTran is a good company and has had a decent run but the future was not bright. All ancillary revenue pipelines had played out and the competition had choked off any future growth. There wasn't money in the bank for planes and oil isn't going down soon. SWA was and is the White Knight in the AirTran story.

Lets work this out and get on with SWA's domination of the World.

True dat!

 

[Luv2BFlyin]

WN's gain would have been higher had to not been for costs related to acquiring AirTran.

AirTran's loss might not have been as bad had labor costs not been higher due to the new pilot labor agreement.

Not getting excited just pointing out the obvious.

Over 7M of AT's loss was due to the merger as well.

 

[LeeRoyJenkins]

Over 7M of AT's loss was due to the merger as well.

Which still would have not made AAI profitable had they not had that 7 Million in Acquisition related costs.

 

[Luv2BFlyin]

Which still would have not made AAI profitable had they not had that 7 Million in Acquisition related costs.

Didn't say it would, you chose to add the merger caveat as an excuse for lack of better profit for WN.

 

[LeeRoyJenkins]

Didn't say it would, you chose to add the merger caveat as an excuse for lack of better profit for WN.

You mean the acquisition?

 

[Lear70]

You mean the acquisition?

Touche...

 

[GuppyWN]

What's an $8.8 million loss between friends?


Gup

 

[Ty Webb]

You guys crack me up. AirTran's route structure is primarily north-south. We are typically profitable Q2 and Q4 and have minor losses in Q1 &Q3.

You guys who are surprised by this are just revealing your own lack of knowledge of who you're merging with.

What's even stupider is that you expect this to mean something in sli negotation or arbitration.

 

[GuppyWN]

At least one of us is laughing!

Gup