AirTran Reports Loss

[Critter717]

ORLANDO, Fla., Oct. 26 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc., (NYSE: AAI), the parent of AirTran Airways, Inc., today reported year-to-date net income of $18.8 million or $0.20 per diluted share compared to $7.7 million or $0.09 per diluted share in 2005. For the third quarter 2006, AirTran Airways reported a net loss of $4.3 million or $0.05 per diluted share, which compares to net income of approximately $1.0 million or $0.01 per diluted share in the year earlier period.
Included in the third quarter results is a non-cash, net of tax charge of $1.5 million or $0.02 per share, to record additional free ticket liability related to the Company's highly successful 2005 Wendy's promotion. This amount will be recognized as future revenue when the tickets are used.
AirTran Airways continued to set third quarter records with passenger revenue of $467.2 million and total customers of over 5.1 million. Commenting on the quarter Joe Leonard, AirTran Airways' chairman and chief executive officer said, 'Given the impact of increased security concerns and changes to regulations regarding carry-on items that occurred we began to see a slow down in the end of August. However, as we stated in our September traffic release we have begun to see a return to more normal booking levels in mid-November.'
For the third quarter AirTran Airways' average fare rose to $90.94 or an 11.0 percent increase compared to the third quarter 2005 average fare of $81.96. Bob Fornaro, AirTran Airways' president and chief operating officer said, 'The pricing environment has allowed us to off-set a 23 percent increase in year-over-year jet fuel prices. We are hopeful that the current fuel outlook for the fourth quarter remains favorable.'
AirTran Airways' non-fuel unit cost performance continued to improve at 6.04 cents per available seat mile, reflecting a 4 percent reduction compared to 2005. Commenting on the quarter Stan Gadek, senior vice president of finance and chief financial officer, said, 'Our new 737-700s continue to improve the overall efficiency of our operation. From higher utilization to lower fuel burn, the 737 is an integral part of our strategy to achieve industry leading non-fuel costs.'
Highlights of AirTran Airways' accomplishments and service enhancements during the third quarter and to date include:
* Announced service to Stewart International Airport in Newburgh, N.Y., and new seasonal service to Daytona Beach, Fla., which will begin January 11, 2007. * Announced expansion to many Florida cities including: Detroit to/from Fort Lauderdale, Fort Myers, and Tampa; as well as Dayton and Milwaukee to/from Tampa. Winter service to Florida has been increased to accommodate customers in Chicago, Detroit, Indianapolis, Akron/Canton, Flint, Bloomington, Moline/Quad Cities and Milwaukee. Also announced additional Florida service from White Plains, N.Y. to Fort. Lauderdale, Fort Myers and Tampa. All new service will begin this winter. * Launched nonstop service between Gulfport-Biloxi International Airport and Fort Lauderdale-Hollywood International Airport. * Received delivery of four Boeing 737-700 aircraft during the quarter. * The receipt of the prestigious Tony Jannus Aviation Award by our chairman and chief executive officer, Joe Leonard for his achievements in aviation.

 

[BLUE BAYOU]

No one wants to come out and say it, but it is difficult to compete against bankrupt carriers who charge rediculous fares while they're "protected", AKA DELTA

 

[ponder]

Wait, you just said it!

 

[Ty Webb]

AirTran typically makes most of the money for the year in the 4th and 2nd quarters, due to it's heavy emphasis on north-south traffic. First and third quarters are often a wash.


.

 

[curtaindriver]

That's indicative of the whole industry.

CD

 

[MRYFLYER]

AirTran typically makes most of the money for the year in the 4th and 2nd quarters, due to it's heavy emphasis on north-south traffic. First and third quarters are often a wash.


.

A loss is a wash? I though breaking even was a wash? As to those cheap fares who started the fare war? Was it not AAI that had the catering trucks with "if this truck is not parked at your plane you are paying too much"?

How will this impact the contract talks?

 

[relief tube]

Here's another one of their conceited slogans (dont quote me):

"Every airline uses the same gas, so why do the others charge more?"

Well I guess because the others actually like turning a damn profit. $90 avg fare and you guys charge jumpseaters, might as well just call it "RyanAirAmerica."

 

[USARET]

A loss is a wash? I though breaking even was a wash? As to those cheap fares who started the fare war? Was it not AAI that had the catering trucks with "if this truck is not parked at your plane you are paying too much"?

How will this impact the contract talks?

AAI is still going to be well in the black for the year, so from the pilot's perspective this quarterly earnings report means nothing as it relates to contract negotiations.

 

[relief tube]

No one wants to come out and say it, but it is difficult to compete against bankrupt carriers who charge rediculous fares while they're "protected", AKA DELTA

They're just doing their best to compete against your ridiculous $39 shuttle fares or you $31 one way Halloween "Jetboo" fares. Because that's really rational.

On top of that they have to compete with trash dumster searchers looking for used Wendy's cups so they can fly for free on Airtran.

This isn't a legacy problem, this is trying to deal with LCC BS.

 

[walden]

Somebody might have a little chip on their shoulder....