AirTran reports triple earnings

Source: Exec Digital USA

Date :10/30/2007 7:36:01 AM

AirTran Holdings, parent of low-cost carrier AirTran Airways, on Tuesday reported a third-quarter profit on increased revenue as it flew fuller planes.

AirTran reported third-quarter net income of $10.6 million, or $0.11 per diluted share, compared to a loss of $4.6 million, or $0.05 per diluted share, during the same period last year.

Included in the third-quarter 2007 results is a one-time, net of tax charge of $6.6 million, or $0.07 per diluted share, related to costs associated with the effort to acquire Midwest Air Group.

Without this charge, AirTran Airways net income was $17.3 million, or $0.18 per diluted share.

Total operating revenues for the quarter rose 25 percent exceeding market expectation of $602.98 million to $608.6 million, up from $486.9 million in the prior year quarter.

Continuing trends

Bob Fornaro, president and chief operating officer said: "Our unit revenue improved nearly three percent year over year and contributed to the record-setting revenue performance. We are optimistic that this trend will continue through year end."

During the third quarter AirTran Airways' non-fuel unit costs set another all-time record low of 5.92 cents per ASM (available seat miles) representing a two percent reduction year over year.

Total operating unit costs declined four percent to 9.49 cents per ASM in the same period.

For the nine months ended September 30, AirTran Holdings net income tripled to $54.9 million from $18.3 million in the year-ago period.

October 30 2007