AirTran posts quarterly loss

[Mongolikecandy]

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=PR&Date=20100421&ID=11432657&Symbol=AAI

I know I am not the sharpest tool in the shed, but with record revenues and load factors, how in Hades did they lose money for the quarter?

 

[Capt. Kramer]

Mismanagement of resources.

 

[Brazilgun]

Management 101 -
After few quarters of profit, give yourselves a raise and justify it to shareholders by showing record profits, then manipulate the books to show a loss before inking a new labor contract. More leverage with "we are losing money. We need you to take one for the team to secure your job and avoid furloughs."
After the contract is signed, amazingly enough they will post a profit.
It's all about playing with the books for their advantage.

 

[Mongolikecandy]

Management 101 -
After few quarters of profit, give yourselves a raise and justify it to shareholders by showing record profits, then manipulate the books to show a loss before inking a new labor contract. More leverage with "we are losing money. We need you to take one for the team to secure your job and avoid furloughs."
After the contract is signed, amazingly enough they will post a profit.
It's all about playing with the books for their advantage.

That was my initial thought but I didn't know if I was looking too much into it. I look forward to the earnings call when Bob has to talk about the status of negotiations.

 

[Mike man]

...more than a 50 percent increase in fuel expenses...

Is the business plan based on $35/barrel ?

A 50% increase in fuel expenses seems extremely high, in fact it seems astronomically high...especially since they made $4million on fuel hedges.

 

[relief tube]

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=PR&Date=20100421&ID=11432657&Symbol=AAI

I know I am not the sharpest tool in the shed, but with record revenues and load factors, how in Hades did they lose money for the quarter?

compensating their pilots lavishly.......wait. oh you said Airtran.

 

[FDJ2]

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=PR&Date=20100421&ID=11432657&Symbol=AAI

I know I am not the sharpest tool in the shed, but with record revenues and load factors, how in Hades did they lose money for the quarter?

You're correct that revenue was up approx. $63M, unfortunately fuel costs rose approx. $68M and MX approx. $13M, which pretty much accounts for the loss for the quarter.

Q1 is typically a weak quarter for the industry, I suspect things will get better this summer.

 

[Lear70]

I look forward to the earnings call when Bob has to talk about the status of negotiations.

You'll be waiting a while. They screened the questions during the call before allowing them to be asked. Not one, single questions about negotiations or pilot contracts / strike vote threatening 2nd or 3rd quarter performance.

 

[Mongolikecandy]

You'll be waiting a while. They screened the questions during the call before allowing them to be asked. Not one, single questions about negotiations or pilot contracts / strike vote threatening 2nd or 3rd quarter performance.

I listened to the entire thing. That was an hour I won't get back. I didn't realize they screened the questions. Goes to show how naive I am. Oh well.

I voted yes.

 

[ATLboeing]

You'll be waiting a while. They screened the questions during the call before allowing them to be asked. Not one, single questions about negotiations or pilot contracts / strike vote threatening 2nd or 3rd quarter performance.

Will he be fielding the tough questions at the shareholders meeting next month?

Nice of them to place the blame on "snow storms". I think the one guy's avitar on here correctly shows where management's heads have been regarding that 12 million dollar loss....couldn't possibly be piss poor management, planning, scheduling, pilot staffing, pilots unwilling to do favors, yada yada yada...