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ATA faces cash crunch

mad691

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ATA Q2 Net Loss Doubles, Seeking More Cash

Through a U.S. Securities Exchange Commission (SEC) filing, ATA Airlines has reported a second quarter net loss more than double that of 2004, at $54.8 million. The company also revealed that it will need more funding in order to continue operations through the end of the year.

ATA's second quarter operating loss was up nearly 39 percent at $14.6 million. For the half-year, ATA's net loss was up more than three fold from $90.0 million to $417.5 million, while its operating loss was up nearly 75 percent at $57.3 million.

Second quarter revenue was down nearly 31 percent at $270.9 million while operating expenses were down nearly 29 percent at $285.5 million. On a per mile basis, revenue was up 10.5 percent at 8.13 cents while costs were up 13.2 percent to 8.56 cents. Yield improved 23.2 percent to 12.68 cents.

ATA's jet traffic in revenue passenger miles for the second quarter was down 43.0 percent on capacity that was down 36.3 percent for a deteriorated load factor of just 64.1 percent.

In its SEC filing, ATA warned that it will need $50 million in additional funding.

"Based on its current financial projections, the company believes that it will require a capital infusion," said ATA in its filing. "The company has retained advisors to assist in raising the necessary capital and is seeking $100 million in financing in the expectation of emergence from Chapter 11. The company believes up to $50 million in additional funds will be required to provide the liquidity necessary to continue as a going concern through the end of 2005."

ATA says the funds could come from additional debtor-in-possession financing, deferred debt payments, improved working capital, assets sales or operating cash flow improvements.
 

Remington

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Hummmmm, lets see where that cash will come from.......
Pilots maby? Wierd how this report comes out right before the disHonorable Judge Lorch decides on ATA's 1113 filing.
 

HalinTexas

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the disHonorable Judge Lorch

Wait a minute. Don't impune the judge here. He's done nothing but follow the law.

Our CASM a year ago was under $0.07, now it's $0.0865 after concessions, furloughes, more concessions? Me thinks me smells managment malfeasance.
 

Jetjockey

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Actually CASM will rise after a large furlough of the wokforce. Junior pilots with lower salaries are the first to go. Now your existing workforce for has become more expensive per ASM. That is exactly why is important to keep a growth rate. New employees are cheaper, and that dilutes the more expensive senior employees.
 

Capt.LongThrust

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Propaganda.
 

njcapt

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Capt.LongThrust said:
Propaganda.

... and the proverbial 'One Time Charges Against Earnings'. Its amazing what gets charged to a company in bankruptcy. Gotta cry poor before you go in front of the Judge, you know.
 

Capt.LongThrust

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NJ,

You are a freak.
 

737 Pylt

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enough
HalinTexas said:
Wait a minute. Don't impune the judge here. He's done nothing but follow the law.

Our CASM a year ago was under $0.07, now it's $0.0865 after concessions, furloughes, more concessions? Me thinks me smells managment malfeasance.

Yeah, we know how honest management can be! LOL!
737
 

Noam

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I'm just happy that ATA will be giving Mr. Mikelsons more money if when he retires this year he signs a three year no compete clause.

If the company didn't give him that additional money he may try to start up another carrier that would compete with ATA. Somebody with Mr. Mikelsons high ethical standards and vast intelligence could do great damage to a company like ATA. Oh wait, he already did!
 
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