AirTran Expects Profit every Quarter this year

Eagle757shark

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ATLANTA (AP) - AirTran Airways expects to be profitable in every quarter this year, despite the weak economy and how it has impacted revenue, Chief Executive Robert Fornaro said Monday.
"I think that will be a rarity among carriers," Fornaro said at the Raymond James Institutional Investors Conference, which was webcast on the Internet.
Fornaro said that unit revenue is currently being hit more than previously expected, but he noted AirTran expects to have a strong April because of the Easter holiday.
He reiterated that the airline will cut capacity about 4 percent this year, capacity will be flat next year and the airline, a unit of Orlando, Fla.-based AirTran Holdings Inc., expects to grow in 2011.
Fornaro said AirTran has been able to maintain a low-cost advantage over competitors even though it has been shrinking.
He also predicted that global carriers will take more of the brunt of the recession than AirTran.
Fornaro said AirTran believes it can grow in Midwest Airlines' home base of Milwaukee without Midwest under its wing. He also cited the weak economy and how it has affected Midwest.
"We're very glad we were unsuccessful with that purchase," Fornaro said. He added, "The opportunity to expand in Milwaukee will be a very good one for us. We didn't have to buy that company. The opportunity is out there because of the poor economy."
AirTran made a hostile takeover bid of $78 million for Midwest in June 2005. AirTran raised its offer several times, topping out with an offer worth an estimated $445 million when it was made in August 2007. Each time, its offer was rejected.
Midwest ultimately agreed to be sold to private equity firm TPG Capital for about $450 million.
Fornaro said Monday that AirTran expects its Milwaukee service to soon account for roughly 10 percent of its overall capacity.
 

tubelcane

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Well I certainly hope we can make money with full airplanes, oil below $50 a barrel and near bottom of the industry cost structures! If we don't make money this year, and a hell of a lot of it we need regime change in Orlando!
 

maxblast72

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Total RASM guidance (including ancillary fees like bag fees) now down 2-3.5% for Q1 and an all in hedge included $1.60-$1.65/gallon for the Jet A. Will be a really good year for Airtran as people continue to look for value services during economically slow times. Very similar to 2002-2003 for Airtran Airways except the growth will be a little slower due to tougher revenue environment.

The only bad news for pilots is we are only projecting to end 2011 with 139-143 airplanes in the fleet (vs the current 136). That means late 2004 new hires will probably be the most junior CAs on the property at the end of 2011 (we will have FOs on 8th year pay scale as we go into 2012).
 

Lear70

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Hey, you've GOT to be kidding me! Really? 8th year F/O's? No way.

I mean, Allen, Klaus, and Kolski all said we'd be Captains in 4 years, right? No reason to worry about pay raises for the F/O's and Scope issues, right?

Nothing to see here, pay no attention to the man behind the curtain.... :rolleyes:
 

Murphy

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And one BoD member trumpeted that three year upgrade time as a reason to vote for the TAs and now he signed up for a Leave Of Absence. Guess the grass was greener at some place other than AirTran. We all remember well that letter of endorsement for the TA.
 

turbodriver

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At least your furloughs were out for what, 4 months?

Another negotiating ploy I assume.....
 

hairball1173

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I think its such a moving target that no body knows. I don't even want to tell what was said to me in new hire class and then BAMB!!!!! Oil hits 147 and on 4/7 they cancel all new hires classes etc. Upgrad, reserve, all a moving target.
 

Lear70

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The classic line was "All of you are going to come back one time for recurrent as F/O's, then the next time we see you, you'll be upgrading to Captain".

Were they still spewing this stuff just a year ago? :puke:
 

maxblast72

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At least your furloughs were out for what, 4 months?

Another negotiating ploy I assume.....
Furloughs out 5-7 months depending on seniority. Actually not a negotiating ploy here at Airtran. We were burning alot of cash last July as Jet A went over $4/gallon (when the furlough decision was made). At Airtran, fuel peaked at over 50% of our operating cost which is the highest in the industry. Having the most sensitive to fuel price business model in the industry, we struggled in 2008 but turned the corner quickly in 2009 and are now predicting a profit every quarter this year.
 

Colonel Savage

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What percentage of your total fuel requirement is currently hedged @ $40/bbl?
 

tubelcane

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I heard we are hedged at $60 per barrel going forward. Not sure how far forward or if this is even true. My source said Fornaro personally told him this.
 

Colonel Savage

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I heard we are hedged at $60 per barrel going forward. Not sure how far forward or if this is even true. My source said Fornaro personally told him this.
OK, Thanks...
 

maxblast72

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35% hedged for 2009. If oil at $40/barrel, we pay $51/barrel for 35% of our fuel. If oil at $60, we pay $66 and if oil at $80, we pay $71. These numbers are off Fornaro's powerpoint presentation this week. It looks like benefit kicks in around $70/barrel (on 35%).

Other good news is crack spread has come down to $6/barrel in March 2009 after averaging $25/barrel for 2008.
 

scarlet

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Dont worry ALPA will be here and we will have unity and a contract in 6 months, because ALPA and all their resources that was used at Midex,TWA,UAL,Comair,ASA,Mesa,Spirit,Eagle(15yrs).

Alpa=Please do not look at our past to judge our future. Our mgt team has never dealt with ALPA before!
 

Lear70

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Poor Scarlet, always on the outside of the group looking in.

When the majority disagree with you, the majority of the time, I submit that it might be time for a little self-examination of yourself? Your goals? Your priorities?

85%+ of the pilot group (my prediction on ALPA vote outcome) can't be all wrong, my friend. Just a thought...
 

Lear70

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high % of herd mentality will get alpo elected.

RV
Or it *could* be the high % of people fed up with the repeated abuse from management and the NPA seemingly unable to rally the pilot group to begin the "hard fight" that needs to happen.

I've said it once and I'll say it again. Without a strike, or at least the very REAL threat of one, including the funds to accomplish it, the will of the pilot group to accomplish it, the preparation of union leadership for it, then finally, when ready, being released into self-help and the clock starting, management will do NOTHING towards getting a REAL contract with REAL improvements and not trading away 2 things we need for every 1 thing we get back.

Something has to change, and the anti-ALPA crowd has yet to provide a clear, concise plan for accomplishing the above goals, or even that they are INTERESTED in doing anything but bending over and taking whatever the company gives.

THAT'S why the ALPA merger is going to be ratified. The big question is, will the new MEC be aggressive, proactive, and as openly-communicative as they have in the last week and, even more, moving forward? If they won't, it'll be the same old "recall after 1 year" thing we've already had. If they will, all this angst will have been worth it.
 

Smarta$$

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Dont worry ALPA will be here and we will have unity and a contract in 6 months, because ALPA and all their resources that was used at Midex,TWA,UAL,Comair,ASA,Mesa,Spirit,Eagle(15yrs).

Alpa=Please do not look at our past to judge our future. Our mgt team has never dealt with ALPA before!
Said the Gojet scum.
 

Eagle757shark

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high % of herd mentality will get alpo elected.

RV
So twepilot and Scarlet what do you suggest? What ideas do you have? What is your involvement? The NPA is broken and has become ineffective. The herd sees that and is tired of it! ALPA is not perfect, but I believe it has the chance to be better than what we have currently.
 

Clyde Frog

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No reply, as expected.
 
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