BLUE BAYOU
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DOW JONES NEWSWIRES
AirTran Holdings Inc.'s (AAI) AirTran Airways will defer the delivery of 18 Boeing Co. (BA) 737-700 aircraft, becoming the latest carrier to scale back plans for growth as fuel prices continue to rise.
The discount carrier will defer the aircraft delivery, originally scheduled for 2009 through 2011, to 2013 through 2014.
"As we stated during our first-quarter earnings call, as a result of continuing record high fuel costs, we are reducing planned growth for September 2008 through at least 2009, from 10% to no more than flat," Chief Executive Bob Fornaro said. "This transaction will accomplish a substantial portion of that plan."
Earlier this week, JetBlue Airways Corp. (JBLU), in a bid to preserve liquidity and slow its capacity growth, said it would defer deliveries of 21 Airbus jetliners for as long as five years, reducing the number of new A320s it will take into its fleet to 11 between next year and 2011.
At the end of April, AirTran closed a public offering of debt and equity securities in a move to improve its financial flexibility and combat record-high fuel costs after reporting it swung to a first-quarter loss of $34.8 million.
The airline currently operates 54 Boeing 737-700 series aircraft as well as 87 Boeing 717-200 aircraft.
Shares traded recently at $2.98, down 1.97%
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; [email protected]
(END) Dow Jones Newswires
05-30-08 1337ET
Copyright (c) 2008 Dow Jones & Company, Inc.
AirTran Holdings Inc.'s (AAI) AirTran Airways will defer the delivery of 18 Boeing Co. (BA) 737-700 aircraft, becoming the latest carrier to scale back plans for growth as fuel prices continue to rise.
The discount carrier will defer the aircraft delivery, originally scheduled for 2009 through 2011, to 2013 through 2014.
"As we stated during our first-quarter earnings call, as a result of continuing record high fuel costs, we are reducing planned growth for September 2008 through at least 2009, from 10% to no more than flat," Chief Executive Bob Fornaro said. "This transaction will accomplish a substantial portion of that plan."
Earlier this week, JetBlue Airways Corp. (JBLU), in a bid to preserve liquidity and slow its capacity growth, said it would defer deliveries of 21 Airbus jetliners for as long as five years, reducing the number of new A320s it will take into its fleet to 11 between next year and 2011.
At the end of April, AirTran closed a public offering of debt and equity securities in a move to improve its financial flexibility and combat record-high fuel costs after reporting it swung to a first-quarter loss of $34.8 million.
The airline currently operates 54 Boeing 737-700 series aircraft as well as 87 Boeing 717-200 aircraft.
Shares traded recently at $2.98, down 1.97%
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; [email protected]
(END) Dow Jones Newswires
05-30-08 1337ET
Copyright (c) 2008 Dow Jones & Company, Inc.
