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AirTran Airways reports first annual loss since 1999


AirTran Airways reported its first full-year loss since 1999 of USD273.9 million, due to the challenging combination of high fuel prices in the first three quarters of 2008 and weaker demand since the Summer peak. The net loss included non-operating losses of USD150.8 million related to changes in fair value on the company’s fuel hedge contracts. The carrier reported a USD52.7 million net profit reported in 2007. [1349 words]

Unlock the following content in this report:


  • 4Q08 quarterly loss widens on fuel hedge losses
  • Achieves record operating profit and revenues in the quarter
  • Revenue and yield also on the improve
  • Fuel as a portion of total operating expenses falls notably in 4Q08; unwinds some 2009 fuel hedge contracts
  • Record load factor, but break-even load factor shoots through the roof
  • Targeting a 4% capacity reduction in 2009
  • Continues to take action in current difficult environment
  • Uncertain future for 2009

Graphs and data:

  • AirTran financial highlights for three months ended 31-Dec-08
  • AirTran operating margin: 2Q05 to 3Q08
  • AirTran yield (per RPM) and cost (per ASK) 2Q05 to 3Q08
  • Select US carrier non-fuel unit cost (per ASM): 2Q05 to 3Q08
  • AirTran fuel cost as a proportion of total operating expenses: 2Q04 to 4Q08
  • AirTran total operating expenses breakdown by fuel, labour and other: 4Q08
  • AirTran passenger numbers growth (% change year-on-year) and passenger load factors (%): Jan-08 to Dec-08
  • AirTran load factor vs break even load factor: 2Q05 to 4Q08
  • AirTran Airways capacity (ASK) growth: Jan-04 to Dec-08
  • AirTran Airways fleet plans: 2009 to 2016: as at Jan-09
  • AirTran strategies to adapt to challenging environment
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