AirTran Reports Fourth Quarter and Full Year 2004 Profit

[STL717]

Press Release Issued January 25, 2005 6:00:00 AM ET

AirTran Holdings Reports Fourth Quarter and Full Year 2004 Profit
- Annual Operating Revenues Exceed $1 Billion -

ORLANDO, Fla., Jan. 25 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc.,
(NYSE: AAI), the parent company of AirTran Airways, Inc., today reported net
income for the quarter ended December 31, 2004, of $1.1 million, or $0.01 per
diluted share, versus net income of $21.7 million, or $0.24 per diluted share
in the year-earlier quarter. Net income for the full year 2004 was $12.3
million or $0.14 per diluted share.
AirTran Airways' non-fuel operating cost per available seat mile (CASM)
fell 6.8 percent to 6.00 cents for the fourth quarter of 2004 compared to 6.44
cents for the year-earlier quarter. Year over year non-fuel CASM decreased
2.3 percent to 6.35 cents.
"We are pleased to report net income for the fourth quarter and full year
2004," said Joe Leonard, AirTran Airways chairman and chief executive officer.
"Our non-fuel unit costs of $0.06 represent an all-time record low for our
airline. I am proud of the effort put forth by every member of the AirTran
Airways team to deliver another quarter of profitability," Leonard said.
During the fourth quarter, AirTran Airways boarded a record 3.5 million
passengers and generated a 22.6 percent increase in revenue passenger miles on
a 23.4 percent increase in capacity or available seat miles. Load factor
declined slightly, 0.5 points to 69.3 percent.
"Our Company was beset by four hurricanes heading into the quarter which
hurt our bookings in October," commented Robert L. Fornaro, AirTran Airways
president and chief operating officer. "However, November and December were
strong enough to offset the earlier weakness allowing us to end the quarter
with healthy load factors. I'm grateful for the hard work and effort of each
and every AirTran Airways Crew Member."
Commenting on the fourth quarter, Stan Gadek, AirTran Airways senior vice
president and chief financial officer, said, "Fourth quarter 2004 and 2003 net
income contain net credit and tax adjustments of $0.8 million and $5.7
million, respectively. Excluding these adjustments net income for the two
periods would be $0.3 million and $16.0 million." He added, "We are beginning
to see the long-term beneficial effects on costs and productivity from our new
Boeing 737-700s and expect the favorable trend to continue."

Recapping the year of 2004, AirTran Airways:
* Added the Boeing 737-700 series aircraft to its fleet
* Took delivery of six Boeing 717 aircraft and eight Boeing 737 aircraft
* Enhanced service to Fort Lauderdale/Hollywood, Dallas/Fort Worth, Los
Angeles, Boston, Akron-Canton, Pittsburgh, Newport News/Williamsburg,
Tampa, LaGuardia, Las Vegas and Baltimore/Washington
* Opened a new aircraft hangar at Hartsfield-Jackson Atlanta
International Airport
* Opened a new Metro Atlanta call center in Carrollton, Ga.
* Named Best Low-Fare airline by Entrepreneur Magazine for 2004
* Opened a new pilot training center in Atlanta
* Became the first airline to install XM Satellite Radio on a commercial
aircraft
* Signed professional football player Michael Vick as an endorser for the
airline
* Secured financing for all 2005 aircraft deliveries
* Ended the year with $342.3 million of cash and investments

Highlights for the quarter include:
* Initiated new service to Sarasota/Bradenton International Airport
* Enhanced service to Newport News/Williamsburg, Tampa and Chicago Midway
* Took delivery of two Boeing 717 aircraft and three Boeing 737 aircraft
bringing our fleet to 87 aircraft
* Reached milestone of hiring of our 1,000th pilot
* Ratified contract with the Transport Workers Union and the
International Brotherhood of Teamsters -- covering dispatchers,
mechanics and related personnel
* Named G. Peter D'Aloia, Senior Vice President and Chief Financial
Officer of American Standard Companies Inc., to the Board of Directors

AirTran Holdings, Inc., will conduct a conference call to discuss
quarterly results today at 10:00 a.m. Eastern. A live broadcast of the
conference call will be available via the internet at http://www.airtran.com.
AirTran Airways, one of America's largest low-fare airlines with 6,000
friendly, professional Crew Members, operates over 500 daily flights to more
than 40 destinations. The airline's hub is at Hartsfield-Jackson Atlanta
International Airport, where it is the second largest carrier. AirTran Airways
recently added the fuel-efficient Boeing 737-700 aircraft to create America's
youngest all-Boeing fleet. The airline is also the first carrier to install XM
Satellite Radio on a commercial aircraft. For reservations or more
information, visit http://www.airtran.com (America Online Keyword: AirTran).

Editor's note: Statements regarding the Company's operational and
financial success, business model, expectation about future success, improved
operational performance and our ability to maintain or improve our low costs
are forward-looking statements and are not historical facts. Instead, they are
estimates or projections involving numerous risks or uncertainties, including
but not limited to, consumer demand and acceptance of services offered by the
Company, the Company's ability to maintain current cost levels, fare levels
and actions by competitors, regulatory matters and general economic
conditions. Additional information concerning factors that could cause actual
results to differ materially from those in the forward-looking statements is
contained from time to time in the Company's SEC filings, including but not
limited to the Company's annual report on Form 10-K for the year ended
December 31, 2003. The Company disclaims any obligation or duty to update or
correct any of its forward-looking statements.

 

[STL717]

The press release

http://www.prnewswire.com/cgi-bin/micro_stories.pl?ACCT=932993&TICK=AAI&STORY=/www/story/01-25-2005/0002901536&EDATE=Jan+25,+2005

 

[Steeler Fan]

Great news. Thanks for the info STL.

One thing that I've heard from others here is that if you look around, things are getting better here all the time. Hopefully, we can keep it going.

 

[wood pecker]

Any luck or information concerning the online application? None of my friends nor I can get back into the system without getting the CDO error message.


Thanks again

 

[BID]

How much, if any, is fuel fuel hedged at AirTran?

 

[TZFO]

Did that 4Q profit of 1.1mil include the 3.5miil we gave you?

 

[mad691]

Actually it was a wash due to to all the lawyer fees, and processing fee's. pretty much breakeven with the break up fee of 3.5 million.

 

[habubuaza]

Congratulations to you guys at Airtran. I flew Delta yesterday (company travel department takes care of that) and I will say that their service has really taken a nose dive. Still a decent airline but not like before. Anyway I believe that Delta's new fare structure has one goal and one goal only. To put Airtran out of business. So I think there is going to be a major turf battle coming up at ATL. Good luck.
You guys are going to need it. Once again congratulations on your financial performance.

 

[Flying Freddie]

I have a few friends at AirTran. They say the company is asking for give backs on the next contract "because everyone else is". Any comments? No flame just curious.

Nice going on keeping it in the black!

 

[FLB717]

Lets see, DAL lost over 2 BILLION, (yes I know it was in the 3-4 hundred million in real losses, but the mark down in assets hurts the ability to take loans on those remaining assets). It's growing capacity in markets they have more than 80% share of, and the lower fare rates affect 10% of the available seats in the system. So while they are trying hard, the changes will hurt them more than us in the big picture. If anything it push's DAL closer to CH11, unless that is the goal. That will put presure on us as well as USAir. But every bit of growth we do away fom ATL (most is) limits our risk from DAL.

Yeah they (AAI) want a 12% reduction in costs. Everyone ( MGT of all airlines)wants to have a race to the bottom, a game we are NOT interested in playing just for the heck of it. We are in Section 6 now, would you reason they would ask for any thing less. Bob and Joe have yet to take cuts so I guess they don't walk the talk.

 

[atldc9]

They are asking, but I don't think we will be giving. The ATA money was actually more of a benefit, something around $800,000 after all the fees were washed. Looking at it that way, we actually had an operating loss of about $500,000.

Fuel hedging benefits were around $38 million net benefit from hedging for the full year. Another $5.8 million saved from the fuel savings program.

Hedges going forward are pretty slim, 40% @ $0.95 for the 1st quarter, 24% the second, and 14 for the 3rd and 4th.

A pretty good quarter relative to the industry. Relative to any other business, pretty rotten.

 

[FL717]

Always one in the crowd...

Did that 4Q profit of 1.1mil include the 3.5miil we gave you?

Actually I think Southwest "gave" it to us, because I don't believe "you" have any money.

 

[TZFO]

Oh. My fault. I did not know SWA would pay the break-up fee. That's a good deal for us then. More money for corporate retention bonuses. Did SWA also pay the UAL-USair break up fee a few years ago?

 

[DonVerita]

I was at the last union meeting. It is common knowledge that management wants 12% in cost reductions through whatever avenue gets them there...not necessarily from pilot wages. Our negotiating team made it very clear to all in attendance that we WILL NOT participate in the race to the bottom that so many other airlines have been dragged into. Nor will we give concessions. It was pointed out that further efficiencies could be had (aka 12%) by cleaning up certain aspects of the current operation.

I am very happy to see that by management reporting $1 Billion in annual revenue, there can be no doubt that we are now officially a MAJOR airline. While that has no effect on the price of rice down in the bayou, it does foster a broader more global way of thinking and of inclusion.

 

[75M]

Originally posted by TZFO

Did SWA also pay the UAL-USair break up fee a few years ago?

Dude, what's your problem?

 

[TAZ MAN]

I am very happy to see that by management reporting $1 Billion in annual revenue, there can be no doubt that we are now officially a MAJOR airline. While that has no effect on the price of rice down in the bayou, it does foster a broader more global way of thinking and of inclusion.

I think I just threw up a little in my mouth.

 

[DonVerita]

I think I just threw up a little in my mouth.

Isn't your C-152 due for an oil change or something. Go back to playing Microsoft Simulator.

 

[TAZ MAN]

Isn't your C-152 due for an oil change or something. Go back to playing Microsoft Simulator.

Hit a sore spot huh. Hope it didn't hurt too bad. My apologies.

 

[STL717]

I was at the last union meeting. It is common knowledge that management wants 12% in cost reductions through whatever avenue gets them there...not necessarily from pilot wages. Our negotiating team made it very clear to all in attendance that we WILL NOT participate in the race to the bottom that so many other airlines have been dragged into. Nor will we give concessions. It was pointed out that further efficiencies could be had (aka 12%) by cleaning up certain aspects of the current operation.

Preferential Bidding will increase productivity greatly!!!! I've seen it happen.

 

[iflyfred]

I am very happy to see that by management reporting $1 Billion in annual revenue, there can be no doubt that we are now officially a MAJOR airline. While that has no effect on the price of rice down in the bayou, it does foster a broader more global way of thinking and of inclusion.

I think I just threw up a little in my mouth.