....NOT!
AirTran Airways has joined the long list of airlines that have begun the year losing money. Record fuel prices wiped out gains from increased revenue. Planes were filled to record levels, but it wasn't enough to offset a $139.3 million fuel bill, up 63 percent from the same period a year ago. Orlando-based AirTran lost $8.8 million, or 10 cents a share, in the first quarter, excluding a $4.2 million one-time gain from an accounting correction. During the first three months of 2005, it lost $8 million, or 9 cents a share. "Our first quarter is our weakest one of the year, by far," said Bob Fornaro, president and chief operating officer. "We actually got a capacity growth of 24 percent and a revenue growth of 38 percent, which is very, very hard to do. So we think our growth plan is steady and on track." Planes were 70.8 percent full, a first-quarter record, but they needed to be 72.1 percent full for the airline to break even, AirTran said. Nearly all airlines reporting financial results in recent days have said they lost money in the first quarter. Discount carriers such as AirTran often have been able to avoid losses because of their cost structures. However, the impact of oil selling for around $70 a barrel has made it difficult for any to show a profit.
AirTran Airways has joined the long list of airlines that have begun the year losing money. Record fuel prices wiped out gains from increased revenue. Planes were filled to record levels, but it wasn't enough to offset a $139.3 million fuel bill, up 63 percent from the same period a year ago. Orlando-based AirTran lost $8.8 million, or 10 cents a share, in the first quarter, excluding a $4.2 million one-time gain from an accounting correction. During the first three months of 2005, it lost $8 million, or 9 cents a share. "Our first quarter is our weakest one of the year, by far," said Bob Fornaro, president and chief operating officer. "We actually got a capacity growth of 24 percent and a revenue growth of 38 percent, which is very, very hard to do. So we think our growth plan is steady and on track." Planes were 70.8 percent full, a first-quarter record, but they needed to be 72.1 percent full for the airline to break even, AirTran said. Nearly all airlines reporting financial results in recent days have said they lost money in the first quarter. Discount carriers such as AirTran often have been able to avoid losses because of their cost structures. However, the impact of oil selling for around $70 a barrel has made it difficult for any to show a profit.
