ATA posts LOSS

[ataopsdave]

ATA just poseted a 10.5 million loss for the quarter.

 

[ATA737CAPT]

actually, it's a 26 million dollar loss.

 

[ataopsdave]

sorry i apologize

 

[737 Pylt]

Loss is a Loss

Either way, this is some serious sh1t!

If a discount carrier like ATA can not make any money, then this industry is in some seriously bad trouble. Problem is every time one carrier tries to raise its fares (like AA recently) others are reluctant to follow suit.
737
things that make you go hmmmmm........................

 

[N905TW]

We have been told lately how bad things are, and I honestly expected worse than this... although this is certainly bad enough!!!

I sure hope that our seemingly rudderless ship finds its direction before all the cash is gone, this IS the summer travel season after all, where we are supposed to be making the money..... There is so much potential here, if we could just get our #$@#! together....

The company losing $$ in the busy summer quarters... this looks so familiar.. where have I seen this before.....

 

[H25BCPTN]

NWA is putting a hurt to ATA.

 

[TWA Dude]

NWA is a "legacy" carrier, ATA should be putting the hurt on them! Good luck, guys.

 

[ATA737CAPT]

NWA has not even started to compete with ATA. Their service increses out of IND don't start until Oct. With their costs compared to ours and the fact that the people if Indy are pretty loyal to ATA, I don't see them as a problem.

 

[FarginDooshbahg]

NWA is putting a hurt to ATA.

Caution. Genius at work.

 

[H25BCPTN]

Sorry I must have gotten bad information from Indy ground when I asked about the extra NWA airplanes on the ground. Indy said they have seen more flights with more flights on the way.


Must be a touchy area for you guys.

 

[ATA73Pilot]

Under current operating assumptions and absent any changes to existing aircraft lease obligations, the Company does not expect to have sufficient cash to meet its cash obligations in the first quarter of 2005.

As of September 30, 2004, the Company is required to meet an earnings before interest, taxes, depreciation, amortization and aircraft rent ("EBITDAR") to fixed charges ratio covenant under its secured term loan, which is partially guaranteed by the Air Transportation Stabilization Board ("ATSB"), and its mortgage note payable agreements. In addition, certain of the Company's other loan agreements have cross-default provisions that may be triggered if the Company fails to meet this ratio. These covenants were negotiated based on future projections that did not anticipate an on-going weak revenue environment and increasing fuel costs.

Based on current financial projections, the Company is uncertain of its ability to satisfy this covenant. If the Company is unable to meet this financial covenant, it would be in default under these agreements, and the lenders would have the right to accelerate the maturity date of the loan and exercise other remedies against the Company.

The Company intends to discuss its financial position with the ATSB and other lenders to seek to obtain any necessary waivers of these covenants. However, the Company can provide no assurances as to its success in obtaining a waiver or revision of these covenants. In addition, the Company cannot provide assurance that it will not be required to make pre-payments under the loans in order to revise the covenants, which could negatively impact the Company's cash outlook.

The Company has not identified alternate sources of funding to meet cash requirements should an acceleration of the maturity date occur due to the current economic and capital environment.

.....

 

[mt2]

Where's the beef?

Oh come on now JEF, the Company has identified additional sources of funding and it is US. Again.

mt2

 

[njcapt]

Not from this irritated First Officer.

The concession stand is CLOSED.

 

[N905TW]

http://www.theindychannel.com/money/3658655/detail.html

TheIndyChannel.com -- ATA Warns Of Possible Cash Shortage In '05

Indy-Based Company Reports $26M Second-Quarter Loss

POSTED: 8:53 PM EST August 16, 2004
UPDATED: 8:55 PM EST August 16, 2004



INDIANAPOLIS -- Indianapolis-based ATA Airlines on Monday reported a
$26 million loss for 2004's second quarter and warned it might not
have enough cash to meet its obligations early next year.

The airline said that although its number of customers has risen
over the last year, other factors -- including aggressive airline
price wars, fewer military charter flights, and a 27.8 percent jump
in the cost of jet fuel -- have overcome the revenue increase.

In a filing with the Securities and Exchange Commission, ATA said it
expects to meet its cash obligations in 2004, but it might have
trouble doing so in 2005's first quarter.

"Under current operating assumptions and absent any changes to
existing aircraft lease obligations, the company does not expect to
have sufficient cash to meet its cash obligations in the first
quarter of 2005," the filing said.

ATA, which previously said it doesn't expect to turn a profit in
2004, recently has taken steps to cut costs. This summer, it
eliminated 320 jobs and ordered all its departments to cut expenses
by 10 percent.

The airline employs more than 7,000 people. More than 3,000 of them
are in Indianapolis, RTV6 reported.

"ATA Airlines is dealing with many of the same challenges currently
affecting other airlines, including record fuel costs and an anemic
revenue environment," ATA said Monday in a news release. "Management
and employees are working diligently to return the company to
profitability."

Monday's filing with the SEC also warned that ATA might not meet the
cash balance requirements of a federally backed loan granted in
2002. If it does not do so by Sept. 30, the government and other
lenders could declare the company to be in default.

"The company is uncertain of its ability to satisfy this covenant,"
the filing said.

The airline has said it hopes an expanded schedule and the
introduction of business class seating will lead it to profitability
next year.

 

[Jeff Helgeson]

Choppin' up the furniture in the summer make for a very cold winter!

We have been told lately how bad things are, and I honestly expected worse than this... although this is certainly bad enough!!!

I sure hope that our seemingly rudderless ship finds its direction before all the cash is gone, this IS the summer travel season after all, where we are supposed to be making the money..... There is so much potential here, if we could just get our #$@#! together....

The company losing $$ in the busy summer quarters... this looks so familiar.. where have I seen this before.....

Ah yes, the good ole days. I miss them, I wish you the best of luck!

 

[ATA73Pilot]

ATA's cash flow problems have been compounded because the bank that processes the airline's MasterCard and Visa payments has started holding onto the entire amount charged by a passenger until the flight takes place, according to the company's filing. Previously, the company would receive a portion of the ticket purchase in advance.

This change, ATA estimates, will cut the company's cash balance by $20 million.

 

[AA717driver]

Ditto. Too many of my ex-TWA homies over there that shouldn't have to go through this again.

TC
IND

 

[TriJet]

I sure hope that our seemingly rudderless ship finds its direction before all the cash is gone

errr....same goes for the rest of 'em.

 

[ATA73Pilot]

A bankruptcy would be a huge blow to George Mikelsons, ATA's Latvian founder, who still holds a majority of the airline and whose equity could be worthless in the event of a filing.

To avert this, he is focusing on revenue improvements, such as launching business class seating this month, and considering moving into transatlantic markets. - FT.com

 

[350DRIVER]

A bankruptcy would be a huge blow to George Mikelsons, ATA's Latvian founder, who still holds a majority of the airline and whose equity could be worthless in the event of a filing.

To avert this, he is focusing on revenue improvements, such as launching business class seating this month, and considering moving into transatlantic markets. - FT.com

I just wonder how successful he could/will be if he launches into what seems to be an already oversaturated transatlantic market?. I don't think this is the answer to his "domestic" problems that he is currently being faced with.

Best of luck to all you guys over there.

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