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AirTran Airways reduces focus on growth ahead; attention on returning to profitability


AirTran Airways announced plans to reduce capacity by approximately 7-8% during the last four months of 2008, with CEO, Robert Fornaro, stating, "our priorities have clearly shifted. Growth is far down the list of things we're interested in." Instead, the airline plans to focus on building available cash reserves and returning to profitability. The LCC reported a net loss of USD13.5 million in the three months ended 30-Jun-08, compared to a net profit of USD42.1 million in the previous corresponding period. [1107 words]

Unlock the following content in this report:


  • Combination of capacity growth and improved load factors in 1H08; but breakeven load factor also on the rise
  • To shrink Atlanta hub in 4Q08
  • Increases baggage fees

Graphs and data:

  • North American LCC capacity growth plans for 2008: Aug-08
  • North American carriers' domestic capacity (ASMs) and capacity (ASM) growth for the seven months ended 31-Jul-08
  • Selected North and South American airlines' load factors (%) and load factor growth (year-on-year ppts change): Jul-08
  • AirTran load factor vs break even load factor: 2Q05 to 2Q08
  • Hartsfield-Jackson Atlanta International Airport domestic capacity (seats): Aug-08
  • AirTran key recent events to adapt to new environment
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