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.
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.