"AirTran earnings slide 71 percent"

Tuesday, July 27, 2004

AirTran earnings slide 71 percent
THE ASSOCIATED PRESS


ORLANDO, Fla. -- Earnings of AirTran Holdings Inc., the parent of
discount carrier AirTran Airways, fell 71 percent in the latest quarter
partly due to higher fuel costs.

In the second quarter ended June 30, the Orlando-based holding company
earned $16.8 million, or 18 cents a share, on revenue of $275 million.

Analysts were on average expecting earnings of 16 cents a share,
according to Thomson First Call.

In the same period last year, it earned $57.2 million, or 74 cents a
share, on revenue of $233.9 million.

Results for the 2003 second quarter included a government reimbursement
of $37.1 million.
 
Revenue passenger miles, or one paying passenger flown one mile,
increased 21.4 percent, as capacity jumped 17.9 percent.

Load factor, or the percentage of available seats filled, rose 2.2
percentage points to 75.4 percent.

Revenue per available seat mile, considered the best basic measure of
revenue for airlines, dropped 0.5 percent to 9.22 cents.

Operating costs per available seat mile rose 1.9 percent to 8.46 cents.

AirTran said its non-fuel operating costs per available seat mile
declined by 1.1 percent to 6.6 cents.

"While we achieved a reduction in non-fuel unit costs for the quarter,
the impact of high fuel prices offset these gains," said Stan Gadek,
senior vice president of finance and chief financial officer.

New York Stock Exchange-listed AirTran shares closed Tuesday at $11.30,
down 24 cents, or 2.1 percent.

In the six months ended June 30, AirTran earned $20.9 million, or 23
cents a share, on revenue of $516.4 million. In the same period last
year, it earned $59.2 million, or 78 cents a share, on revenue of $441.9
million.


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