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AirTran Reports Record 1Q Net Income of $28.7 Million

CrewDog97

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AirTran Airways, Inc., today reported record net income of $28.7 million or $0.21 per diluted share for the first quarter along with record operating income of $47.7 million. The Company also posted revenues of $542.0 million and achieved the highest first quarter load factor in Company history at 76.3 percent.
The combination of lower fuel prices, low costs, and quality service coupled with fleet and route network adjustments has resulted in the Company posting its best first quarter earnings in history. Total fuel costs for the quarter were down 50.5 percent year-over-year on a 7.2 percent reduction in capacity as measured by available seat miles (ASMs).
"Our ability to report a profit today is rooted in the difficult decisions we made last year. AirTran Airways was among the first airlines to react to the changing economic environment and we are among the first to show signs of recovery," said Bob Fornaro, AirTran Airways' chairman, president and chief executive officer. "Our Crew Members deserve much of the credit as they continue to provide a high-quality product to our customers seeking real value and we are pleased to have been recognized, for the second consecutive year, as first in quality among major carriers in 2008."
During the first quarter, AirTran Airways expanded service in several markets that represented opportunities for significant traffic. Flights in Milwaukee have increased more than 50 percent year over year and more than 30 scheduled daily departures are planned for the Summer schedule. Additional flights and new cities were also added to the Orlando route network and AirTran Airways now has more than 60 peak day departures to 36 destinations and is the second largest carrier to America's top vacation destination.
"AirTran Airways' ability to be nimble and responsive to changing market conditions is a tremendous competitive advantage. Increasing flights to and from Milwaukee and Orlando while redesigning our Atlanta hub schedule to make the network more efficient and productive are the latest examples of this capability," said Kevin Healy, senior vice president of marketing and planning for AirTran Airways.
While the Company expanded to new markets and continued to offer high-value, friendly service, AirTran Airways remained sharply focused on remaining the lowest cost producer among major airlines.
"While the weakening economy has begun to pressure prices throughout the airline sector, our industry leading, low-cost structure has allowed us to offset this challenge," said Arne Haak, senior vice president of finance, treasurer and chief financial officer for AirTran Airways. "We are committed to maintaining our low cost advantage and expect to remain profitable every quarter this year despite the current economic environment."
Other highlights of AirTran Airways' accomplishments in the first quarter and to date include:
-- Ranked #1 among all low-cost carriers for the second consecutive year
in the Airline Quality Rating (www.aqr.aero). This is the fifth
consecutive year AirTran ranked third or higher for quality among all
U.S. carriers in this prestigious rating.
-- Chosen as Travelzoo's Best Provider of Domestic Air Fare Deals in
2009.
-- Announced service commencing in five new cities (Atlantic City, N.J.,
Allentown, Pa., Charleston, W.Va., Asheville, N.C., and Knoxville,
Tenn.) and 14 new routes.
-- Partnered with the Milwaukee Brewers by establishing the AirTran
Airways Landing Zone at Miller Park and by signing Milwaukee Brewers
slugger Ryan Braun as the latest celebrity endorser.

-- Consolidated support operations including: customer service, inflight,
recruiting, marketing and sales in AirTran's new Atlanta Corporate
Center.
 

dalad

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Great job AAI! I bought 5,000 shares in my IRA yesterday before the close but sold them when it eased up over a buck. Now you guys need a payraise.
 

PinnacleDude

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Congratulations to the Trannies! Hard to say you don't deserve or the company can't afford pilot raises....
 

j41driver

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You already have with your payrates.

Thanks....you think I don't know I'm woefully underpaid?

My comment was a sarcastic response to Mgmt's continued request for approx 12% concessions from us while reporting profits.
 

gt1900

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Yep... I think managment was stupid not to give us a contract before ALA and SWA signed TA's (and there is rumor both will get voted down). With every increase in FO wages at other company's I want just a little more then the chity TA we were offered. Im thinking $100 an hour for 5th year FO is about right. Second year at $70+ seems good as well. Capt. toping out at $180+ in 12 years and not the chity 15 years our wonderful Pres AP tried to shove down our throats. THEN they can add 3% per year for COL.
 

firstthird

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how many of the 169 (is that correct?) furloughed guys are taking/have taken recall? did it really save Airtran any money by furloughing for 6 months? in the opinion of Airtran pilots, was it just management playing games during negotiations? thanks. we're having some of these 'furlough' discussions as SWA and I'm interested in how it all went down in Atlanta.
 

maxblast72

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Copied over from another thread:

"Thanks for your concern, but when the decision was made to reduce Airtran's total monthly block hours (and furlough), Airtran was burning through alot of cash. As soon as fuel prices went back below $2/gallon and Airtran became profitable again, everyone was offered a recall due to the fact that we were adding thousands of block hours back into the summer 2009 schedule.

What do you want a CEO to do? Keep flying unprofitable flights or to try to reduce the bleeding?"

Just my take, but I don't think it was game playing. Our union president even said we were very close to filing bankrupcty last July (when our weekly fuel bill went to over $30 million a week). We went from almost bankrupt to having a record First Quarter profit in 6 months due to $1.50/gallon Jet A. There are not many companies in the US anouncing this month that they had record Q1 profits. Airtran's business model does well in a weak revenue environment with low Jet A prices.
 

Lear70

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Well, since the next 3-5 years look like it will continue that trend, we should be great for the short-term, giving our management time to work out a long-term plan for when fuel comes back up in price.

Either way, no reason they can't reward the pilots with a contract that represents our contribution to the success of the organization.
 

ATLboeing

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Set your sights higher than that.


Yep. I don't think that even gets them back to where they were before they took cuts. The only problem is the "realistic" side of me sees that we'd have to get something like a 50% pay raise just to get our FO's to that point. How likely is that? It's gonna take a cooling off period and the willingness to walk...
 

Lear70

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Methinks it'll take an actual strike, probably at least a week to a month in duration, with this particular management team, with the AAI Board of Director's canning a few key people before anything meaningful is accomplished.

Better start padding that strike fund now.
 

relief tube

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Thanks....you think I don't know I'm woefully underpaid?

merge with jetblue and figure the payrate by adding the two payrates together.....then and only then will this industry recover from the QOL arse-kicking that it's suffered the past 10 years.
 
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