AirTran Holdings Reports Record First Quarter Revenues of $300 Million
April 26, 2005: 8:01 a.m. EST
ORLANDO, Fla. (PRNewswire) - ORLANDO, Fla., April 26 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc., , the parent company of AirTran Airways, Inc., today reported its results for the first quarter of 2005:
-- Operating revenues increased 24.2% to $300 million
-- Revenue passengers increased 19.5% to 3.6 million
-- Load factor set a new first quarter record of 70.5%
For the first quarter of 2005, AirTran Airways reported a NET LOSS of $8.0 million or $0.09 per share. This compares to net income of $4.1 million or $0.05 per diluted share in the first quarter of 2004.
"The first quarter challenged us on many fronts as we grew revenues and capacity while contending with escalating fuel prices," said Joe Leonard, chairman and chief executive officer. "Nevertheless, we were able to increase our load factor compared to the prior year. I am proud of the outstanding efforts put forth by our Crew Members to serve a record number of passengers during the first quarter."
Robert L. Fornaro, president and chief operating officer, remarked, "AirTran Airways continues to expand its network with new airplanes, low fares and friendly Crew Members. We have announced service to Indianapolis, Charlotte and Richmond offering new, quality low-fare service in historically high-priced markets. In addition, we continue to improve our product with the introduction of XM Satellite Radio now installed on over 20 percent of our aircraft."
AirTran's cost metrics remained consistent year-over-year. Non-fuel operating cost per available seat mile (CASM) increased slightly to 6.44 cents in the first quarter of 2005 compared to 6.42 cents in the year earlier period. On a fuel price neutral basis, CASM declined 0.4 percent to 8.23 cents for the first quarter of 2005. CASM, including fuel, increased 7.7 percent for the first quarter of 2005 to 8.90 cents.
Commenting on the Company's cost performance, Stan Gadek, senior vice president of finance and chief financial officer said, "As our 737 fleet continues to grow, we expect to see further reduction in unit costs. The 737's fuel efficiency and low cost of operation will contribute to our low-cost structure."
Highlights of AirTran's accomplishments since the first of the year include:
* Initiated new service to Indianapolis
* Announced expansion to Charlotte and Richmond
* Added two B717 and four B737 aircraft to our fleet
* Named Best Low-Fare airline by Entrepreneur Magazine for 2005
* Announced enhanced service to Atlanta, Dallas/Fort Worth, Las Vegas and
Los Angeles
* Unveiled 20 select aircraft with special Elton John livery celebrating
the airline's new XM Satellite Radio service
Editor's note: Statements regarding the Company's operational and financial success, [rest of disclaimer edited by mod]
AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)
Three Months Ended
March 31, Percent
2005 2004 Change
---------------------------
Operating Revenues:
Passenger $289,136 $233,503 23.8
Cargo 596 -- --
Other 9,975 7,903 26.2
-------------------
Total operating revenues 299,707 241,406 24.2
Operating Expenses:
Salaries, wages and benefits 78,333 62,842 24.7
Aircraft fuel 85,438 51,540 65.8
Aircraft rent 44,582 35,936 24.1
Distribution 15,251 11,948 27.6
Maintenance, materials and repairs 23,290 19,010 22.5
Landing fees and other rents 18,042 13,873 30.1
Aircraft insurance and security services 5,253 5,314 (1.1)
Marketing and advertising 9,516 7,602 25.2
Depreciation 4,318 2,884 49.7
Other operating 25,125 20,181 24.5
--------------------
Total operating expenses 309,148 231,130 33.8
--------------------
Operating Income (Loss) (9,441) 10,276 --
Other (Income) Expense:
Interest income (2,347) (1,004) --
Interest expense 4,943 4,647 6.4
--------------------
Other (income) expense, net 2,596 3,643 (28.7)
--------------------
Income (Loss) Before Income Taxes (12,037) 6,633 --
Income Tax Expense (Benefit) (4,008) 2,520 --
--------------------
Net Income (Loss) $(8,029) $4,113 --
====================
Earnings (Loss) per Common Share
Basic $(0.09) $0.05 --
Diluted $(0.09) $0.05 --
Weighted-average Shares Outstanding
Basic 86,743 84,285 2.9
Diluted 86,743 88,532 (2.0)
EBITDA $(5,123) $13,160 --
Operating margin (3.2) % 4.3 % (7.5)pts.
Net margin (2.7) % 1.7 % (4.4)pts.
AirTran Holdings, Inc.
Statistical Summary
(Unaudited)
Three Months Ended
March 31, Percent
2005 2004 Change
------------------------------------
First Quarter Statistical Summary:
Revenue passengers 3,557,709 2,977,085 19.5
Revenue passenger miles
(000s) 2,449,780 1,918,537 27.7
Available seat miles (000s) 3,473,998 2,798,779 24.1
Block hours 88,182 74,857 17.8
Passenger load factor 70.5 % 68.5 % 2.0 pts.
Break-even load factor 73.5 % 66.6 % 6.9 pts.
Average fare $81.27 $78.43 3.6
Average yield per RPM 11.80 cents 12.17 cents (3.0)
Passenger revenue per ASM 8.32 cents 8.34 cents (0.2)
Operating cost per ASM 8.90 cents 8.26 cents 7.7
Fuel price neutral cost per ASM 8.23 cents 8.26 cents (0.4)
Non-fuel operating cost per ASM 6.44 cents 6.42 cents 0.3
Average cost of aircraft fuel
per gallon 147.86 cents 107.52 cents 37.5
Gallons of fuel burned 57,783,540 47,933,299 20.5
Weighted-average number of
aircraft 90 74 21.6
Note: During the first quarter of 2005, the Company's effective tax rate decreased from 39% to 33%. This decrease resulted from the effect of permanent differences and the Company's pre-tax loss for the quarter.
Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
Three Months Ended March 31, 2005 and 2004
Pursuant to Regulation G of the Securities and Exchange Commission, we are providing further disclosure of the reconciliation of reported non-GAAP financial measures to their comparable financial measures reported on a basis consistent with U.S. Generally Accepted Accounting Principles (GAAP). Our disclosure of earnings before interest, taxes, depreciation and amortization (EBITDA), operating costs (CASM), non-fuel operating cost (Non-fuel CASM) and fuel price neutral cost per available seat mile (Fuel price neutral CASM), are consistent with financial measures reported by other airlines and are comparable to financial measures required in our submission to the United States Department of Transportation.
The following table reconciles operating income to EBITDA:
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2005 2004
---------------------
Net Income (Loss) $ (8,029) $ 4,113
Add back:
Income tax expense (benefit) (4,008) 2,520
Other (income) expense, net 2,596 3,643
Depreciation 4,318 2,884
---------------------
EBITDA $ (5,123) $ 13,160
=====================
The following table shows the calculation of operating cost, non-fuel operating cost and fuel price neutral cost, and per ASM:
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2005 2004
---------------------
Total operating expenses $309,148 $231,130
Less aircraft fuel 85,438 51,540
---------------------
Total operating expenses excluding aircraft fuel 223,710 179,590
=====================
Three Months Ended
March 31,
2005 2004
---------------------
Calculation of cost per ASM using GAAP amounts:
Total operating expenses (000s) $309,148 $231,130
Available seat miles (000s) 3,473,998 2,798,779
Operating cost per ASM (cents)
(Total operating expenses/ASM) 8.90 8.26
=====================
Calculation of cost per ASM excluding fuel:
Total operating expenses excluding fuel (000s) $223,710 $179,590
Available seat miles (000s) 3,473,998 2,798,779
Operating cost per ASM excluding fuel (cents)
(Total operating expenses excluding fuel/ASM) 6.44 6.42
=====================
Calculation of fuel price neutral cost per ASM
Average cost of aircraft fuel per gallon (cents) 147.86 107.52
Gallons of fuel burned 57,783,540
Cost of current period fuel at prior year price
(000s) 62,129
Total operating expenses excluding fuel (000s) 223,710
Cost of current period fuel at prior year price
(000s) 62,129
----------
Total operating expenses with fuel price adjustment
(000s) 285,839
==========
Available seat miles (000s) 3,473,998
Fuel price neutral cost per ASM (cents)
(Total operating expenses with fuel price
adjustment/ASM) 8.23
Could the Delta simplifares be taking a toll on Valujet, oops i mean Airtran?
April 26, 2005: 8:01 a.m. EST
ORLANDO, Fla. (PRNewswire) - ORLANDO, Fla., April 26 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc., , the parent company of AirTran Airways, Inc., today reported its results for the first quarter of 2005:
-- Operating revenues increased 24.2% to $300 million
-- Revenue passengers increased 19.5% to 3.6 million
-- Load factor set a new first quarter record of 70.5%
For the first quarter of 2005, AirTran Airways reported a NET LOSS of $8.0 million or $0.09 per share. This compares to net income of $4.1 million or $0.05 per diluted share in the first quarter of 2004.
"The first quarter challenged us on many fronts as we grew revenues and capacity while contending with escalating fuel prices," said Joe Leonard, chairman and chief executive officer. "Nevertheless, we were able to increase our load factor compared to the prior year. I am proud of the outstanding efforts put forth by our Crew Members to serve a record number of passengers during the first quarter."
Robert L. Fornaro, president and chief operating officer, remarked, "AirTran Airways continues to expand its network with new airplanes, low fares and friendly Crew Members. We have announced service to Indianapolis, Charlotte and Richmond offering new, quality low-fare service in historically high-priced markets. In addition, we continue to improve our product with the introduction of XM Satellite Radio now installed on over 20 percent of our aircraft."
AirTran's cost metrics remained consistent year-over-year. Non-fuel operating cost per available seat mile (CASM) increased slightly to 6.44 cents in the first quarter of 2005 compared to 6.42 cents in the year earlier period. On a fuel price neutral basis, CASM declined 0.4 percent to 8.23 cents for the first quarter of 2005. CASM, including fuel, increased 7.7 percent for the first quarter of 2005 to 8.90 cents.
Commenting on the Company's cost performance, Stan Gadek, senior vice president of finance and chief financial officer said, "As our 737 fleet continues to grow, we expect to see further reduction in unit costs. The 737's fuel efficiency and low cost of operation will contribute to our low-cost structure."
Highlights of AirTran's accomplishments since the first of the year include:
* Initiated new service to Indianapolis
* Announced expansion to Charlotte and Richmond
* Added two B717 and four B737 aircraft to our fleet
* Named Best Low-Fare airline by Entrepreneur Magazine for 2005
* Announced enhanced service to Atlanta, Dallas/Fort Worth, Las Vegas and
Los Angeles
* Unveiled 20 select aircraft with special Elton John livery celebrating
the airline's new XM Satellite Radio service
Editor's note: Statements regarding the Company's operational and financial success, [rest of disclaimer edited by mod]
AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)
Three Months Ended
March 31, Percent
2005 2004 Change
---------------------------
Operating Revenues:
Passenger $289,136 $233,503 23.8
Cargo 596 -- --
Other 9,975 7,903 26.2
-------------------
Total operating revenues 299,707 241,406 24.2
Operating Expenses:
Salaries, wages and benefits 78,333 62,842 24.7
Aircraft fuel 85,438 51,540 65.8
Aircraft rent 44,582 35,936 24.1
Distribution 15,251 11,948 27.6
Maintenance, materials and repairs 23,290 19,010 22.5
Landing fees and other rents 18,042 13,873 30.1
Aircraft insurance and security services 5,253 5,314 (1.1)
Marketing and advertising 9,516 7,602 25.2
Depreciation 4,318 2,884 49.7
Other operating 25,125 20,181 24.5
--------------------
Total operating expenses 309,148 231,130 33.8
--------------------
Operating Income (Loss) (9,441) 10,276 --
Other (Income) Expense:
Interest income (2,347) (1,004) --
Interest expense 4,943 4,647 6.4
--------------------
Other (income) expense, net 2,596 3,643 (28.7)
--------------------
Income (Loss) Before Income Taxes (12,037) 6,633 --
Income Tax Expense (Benefit) (4,008) 2,520 --
--------------------
Net Income (Loss) $(8,029) $4,113 --
====================
Earnings (Loss) per Common Share
Basic $(0.09) $0.05 --
Diluted $(0.09) $0.05 --
Weighted-average Shares Outstanding
Basic 86,743 84,285 2.9
Diluted 86,743 88,532 (2.0)
EBITDA $(5,123) $13,160 --
Operating margin (3.2) % 4.3 % (7.5)pts.
Net margin (2.7) % 1.7 % (4.4)pts.
AirTran Holdings, Inc.
Statistical Summary
(Unaudited)
Three Months Ended
March 31, Percent
2005 2004 Change
------------------------------------
First Quarter Statistical Summary:
Revenue passengers 3,557,709 2,977,085 19.5
Revenue passenger miles
(000s) 2,449,780 1,918,537 27.7
Available seat miles (000s) 3,473,998 2,798,779 24.1
Block hours 88,182 74,857 17.8
Passenger load factor 70.5 % 68.5 % 2.0 pts.
Break-even load factor 73.5 % 66.6 % 6.9 pts.
Average fare $81.27 $78.43 3.6
Average yield per RPM 11.80 cents 12.17 cents (3.0)
Passenger revenue per ASM 8.32 cents 8.34 cents (0.2)
Operating cost per ASM 8.90 cents 8.26 cents 7.7
Fuel price neutral cost per ASM 8.23 cents 8.26 cents (0.4)
Non-fuel operating cost per ASM 6.44 cents 6.42 cents 0.3
Average cost of aircraft fuel
per gallon 147.86 cents 107.52 cents 37.5
Gallons of fuel burned 57,783,540 47,933,299 20.5
Weighted-average number of
aircraft 90 74 21.6
Note: During the first quarter of 2005, the Company's effective tax rate decreased from 39% to 33%. This decrease resulted from the effect of permanent differences and the Company's pre-tax loss for the quarter.
Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
Three Months Ended March 31, 2005 and 2004
Pursuant to Regulation G of the Securities and Exchange Commission, we are providing further disclosure of the reconciliation of reported non-GAAP financial measures to their comparable financial measures reported on a basis consistent with U.S. Generally Accepted Accounting Principles (GAAP). Our disclosure of earnings before interest, taxes, depreciation and amortization (EBITDA), operating costs (CASM), non-fuel operating cost (Non-fuel CASM) and fuel price neutral cost per available seat mile (Fuel price neutral CASM), are consistent with financial measures reported by other airlines and are comparable to financial measures required in our submission to the United States Department of Transportation.
The following table reconciles operating income to EBITDA:
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2005 2004
---------------------
Net Income (Loss) $ (8,029) $ 4,113
Add back:
Income tax expense (benefit) (4,008) 2,520
Other (income) expense, net 2,596 3,643
Depreciation 4,318 2,884
---------------------
EBITDA $ (5,123) $ 13,160
=====================
The following table shows the calculation of operating cost, non-fuel operating cost and fuel price neutral cost, and per ASM:
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2005 2004
---------------------
Total operating expenses $309,148 $231,130
Less aircraft fuel 85,438 51,540
---------------------
Total operating expenses excluding aircraft fuel 223,710 179,590
=====================
Three Months Ended
March 31,
2005 2004
---------------------
Calculation of cost per ASM using GAAP amounts:
Total operating expenses (000s) $309,148 $231,130
Available seat miles (000s) 3,473,998 2,798,779
Operating cost per ASM (cents)
(Total operating expenses/ASM) 8.90 8.26
=====================
Calculation of cost per ASM excluding fuel:
Total operating expenses excluding fuel (000s) $223,710 $179,590
Available seat miles (000s) 3,473,998 2,798,779
Operating cost per ASM excluding fuel (cents)
(Total operating expenses excluding fuel/ASM) 6.44 6.42
=====================
Calculation of fuel price neutral cost per ASM
Average cost of aircraft fuel per gallon (cents) 147.86 107.52
Gallons of fuel burned 57,783,540
Cost of current period fuel at prior year price
(000s) 62,129
Total operating expenses excluding fuel (000s) 223,710
Cost of current period fuel at prior year price
(000s) 62,129
----------
Total operating expenses with fuel price adjustment
(000s) 285,839
==========
Available seat miles (000s) 3,473,998
Fuel price neutral cost per ASM (cents)
(Total operating expenses with fuel price
adjustment/ASM) 8.23
Could the Delta simplifares be taking a toll on Valujet, oops i mean Airtran?
