My Account Menu

CAPA Login


Register to trial CAPA Membership!

AirTran Airways' deep second quarter losses spur further capacity cuts

31-Jul-2008

AirTran Holdings, the parent company of AirTran Airways, reported a net loss of USD13.5 million in the three months ended 30-Jun-08 (2Q08), compared to a net profit of USD42.1 million in the previously corresponding period, resulting in a -6.6% operating margin, a 19.3 ppt year-on-year reduction. The quarter's loss was largely attributable to the effects of record high fuel costs, with fuel costs increasing by more than USD166 million in the quarter. [1424 words]

Unlock the following content in this report:

Subheadings:

  • Some bright spots as AirTran digs in
  • Record load factor; but load factor falling short of break-even level
  • Unit costs and average fare up in 2Q08; non-fuel unit costs and yield falls
  • Fuel representing almost 50% of total operating expenses
  • Increase fuel hedge to cover 70% of fuel needs for 2H08
  • Taking action in current difficult environment

Graphs and data:

  • AirTran financial highlights for three months ended 30-Jun-08
  • AirTran operating margin: 2Q05 to 2Q08
  • AirTran load factor vs break even load factor: 2Q05 to 2Q08
  • AirTran yield (per RPM) vs cost (per ASK): 2Q05 to 2Q08
  • AirTran fuel cost as a proportion of total operating expenses: 2Q05 to 2Q08
  • US carriers' fuel hedging positions
  • AirTran key events during 2Q08
  • AirTran Airways capacity (ASK) growth: Jan-04 to May-08
Please login to continue reading or find out more about CAPA Membership below.
This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.