What's Wrong With Airtran?

[PCL_128]

From today's 8-K filing:

Item 7.01. Regulation FD Disclosure.

AirTran Holdings is providing the following updated guidance for the first quarter 2008 for its wholly owned subsidiary AirTran Airways.

The Company anticipates that their all-in fuel cost per gallon, including taxes and into plane fees for the first quarter 2008 will be in the range of $3.00 to $3.05.

Passenger unit revenue (RASM) is expected to increase 6.0% to 6.5% year over year.

Non-fuel unit costs excluding fuel (CASM ex-fuel) is forecasted to be up 0.5% to 1.0% year over year.

The company anticipates that its effective tax rate for the first quarter will be between 35-36%.

 

[scarlet]

AA's problems=good thing for Airtran.

I have had several friends who had to buy a last minute tickets on Airtran, due to being stuck by AA.

Airtran loads the last couple of days over 90%...

 

[buxflyr]

I'm sure you'll get a highly educated response from all the wanna-be airline analysts on flightinfo, most of whom couldn't tell you the difference between a profit and profit margin.

I can't wait to read this.....

If you make a profit, you have a job. If you have a profit margin, you keep your job.

 

[CitationLover]

AA's problems=good thing for Airtran.

I have had several friends who had to buy a last minute tickets on Airtran, due to being stuck by AA.

Airtran loads the last couple of days over 90%...

It is sad....We were shuttling AA flight attendants from MCI to LGA.

Got to love the FAA making a mountain out of a molehill!

 

[flying zephyr]

First let me say that I hope that these guys are wrong! I have a lot of great friends at AirTran and toward the end I was in favor of the merger last summer. There was an article in the WSJ just about two weeks ago that said that if the economy and fuel costs did not significantly improve that Frontier would have less than six months cash on hand before being totally bankrupt. Looks like maybe that they were right about that, but the other Airline discussed was AirTran. Now I don't claim to be an expert and this was not my opinion and I wish that I could find the article to link it, but it said that Airtran is heavily debt laden and could fall below 10% cash/debt ratio, which could force AirTran to refinance debt and in the tightening credit market they would have trouble securing credit or be forced to pay higher interest on the loans.

You asked the question, and this is the only answer I have. Best of luck to all and happier skies ahead. The last six months have been rough on everyone. I'm thinking you guys force us to clean up our act here in MKE or there will be a lot more gates open in the D concourse.

 

[PCL_128]

We still have 14% of yearly revenue in cash on hand. We're safe for now. I don't think this year will be the bad year for us. But if oil stays above $100/bbl, then next year could be very dicey.