AirTran Holdings, Inc., Reports Record Second Quarter Earnings.Business Editors/Travel Writers --ORLANDO, Fla.--(BUSINESS WIRE)--July 12, 2000
-- Record Second Quarter Earnings of $22.6 Million
-- Sixth Consecutive Profitable Quarter
-- Earnings Per Share Growth of 50 percent year over year
-- All Time Record Quarterly Revenue of $160.8 Million
-- All Time Record Revenue Per Available Seat Mile (RASM) of 10.66
cents per mile
-- All Time Record Passenger Enplanements - 1,962,710 passengers
AirTran Holdings AirTran Holdings (NYSE: AAI) is a Nevada corporation that operates as an airline holding company. Its primary asset is AirTran Airways. History After the large amount of negative publicity surrounding the Flight 592 incident, ValuJet Airlines suffered serious , Inc., (Nasdaq:AAIR AAIR Asthma and Allergy Information and Research AAIR Army Accident Investigation and Reporting AAIR Asynchronous Adaptive Incremental Redundancy AAIR AI Language Research Institute ), the parent company of AirTran Airways AirTran Airways is a low-cost airline that is a Delaware corporation with headquarters in Orlando, Florida, USA and is a subsidiary of AirTran Holdings. AirTran operates over 750 daily flights throughout the eastern USA and the Midwest, including over 270 daily departures from , reported record second quarter net income of $22.6 million, or 33 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of $15.0 million, or 22 cents per diluted share, for the second quarter of 1999. Total operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter of 2000 increased by 47.4 percent to $31.6 million. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: grew to 19.7 percent, an improvement of 4.4 points over the previous year. Total revenue grew by 14.8 percent to $160.8 million - a quarterly revenue record for the company. Passenger unit revenue increased by 9.7 percent to 10.66 cents per mile, also a company record. "Second quarter 2000 is AirTran AirTran may mean:
Joe Leonard (born August 4, 1932, San Diego, California), is a retired American motorcycle racer and racecar driver. Leonard won the first AMA Grand National Championship Series in 1954 and won it again in 1956 and 1957. , AirTran Airways' chairman and chief executive officer. "We continue to see steady growth in both the business and leisure market segments, allowing us to simultaneously raise both load factor and yields. Our record revenue growth has allowed AirTran Airways to achieve strong earnings growth in a period of abnormally high fuel prices. Perhaps most important were the efforts of our dedicated employees who delivered high-quality service during a quarter of heavy loads and a difficult air traffic environment. Now that we have established a sound financial and operational foundation, we are poised to grow the company in the second half of the year," stated Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. . AirTran Airways' traffic, or revenue passenger miles Revenue passenger miles (RPMs) is a measure of a passenger traffic for an airline flight, bus, or train calculated by multiplying the total number of revenue-paying passengers aboard the vehicle by the distance traveled measured in miles. (RPMs), grew 13.3 percent on a 4.8 percent increase in capacity, or available seat miles Available seat miles (ASM) is a measure of an airline flight's passenger carrying capacity. It is equal to the number of seats available multiplied by the number of miles flown. This measures an airlines capacity for transporting passengers. (ASMs). Load factor increased by 5.5 points to 72.8 percent. AirTran Airways' yield (average fare per mile) grew by 1.4 percent to 14.64 cents. AirTran Airways carried 1,962,710 passengers in the second quarter of 2000, which is 11.3 percent more than in the same period last year and a company record. AirTran Airways' non-fuel cost per available seat mile (CASM CASM Cost per Available Seat Mile CASM Communities and Small-scale Mining CASM Canadian Academy of Sports Medicine CASM Certificate of Advanced Study in Mathematics (Univeristy of Cambridge, UK) CASM Coherent Adaptive Subcarrier Modulation ) dropped by 6.5 percent to 6.75 cents. Operating costs operating costs npl → gastos mpl operacionales , including fuel, increased 3.9 percent to 8.81 cents as compared with 8.48 cents in the second quarter of 1999. AirTran Airways ended the second quarter with $96.8 million in cash, of which $29.5 million is restricted. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become improved to $36.7 million, a 23.5 percent improvement versus last year's second quarter. Highlights of the airline's accomplishments in the second quarter 2000 include: -- Improved hub structure in Atlanta by offering more and better-timed flights and by increasing frequencies to markets where demand warranted -- Appointed W.J. (Bill) Usery, former Secretary of Labor, to the Board of Directors -- Placed the airline's eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. 717 in service -- Improved hub structure in Atlanta by offering more and better-timed flights and by increasing frequencies to markets where demand warranted -- Appointed W.J. (Bill) Usery, former Secretary of Labor, to the Board of Directors -- Testified before the U.S. House of Representatives and U.S. Senate, regarding AirTran Airways' potential to offer a low-fare network at Ronald Reagan Washington National Airport Ronald Reagan Washington National Airport (IATA: DCA, ICAO: KDCA, FAA LID: DCA) is a public airport located three miles (5 km) south of the central business district of Washington, D.C., in Arlington County, Virginia, United States. -- Improved hub structure in Atlanta by offering more and better-timed flights and by increasing frequencies to markets where demand warranted -- Appointed W.J. (Bill) Usery, former Secretary of Labor, to the Board of Directors Systemwide, AirTran Airways operates 292 daily departures to 31 cities. Offering the convenience of easy, same concourse connections in Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , AirTran Airways operates 133 daily departures from Hartsfield Hartsfield is a surname, which may be used in reference to:
AirTran Airways provides everyday, affordable air travel throughout the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and unlike other airlines, never requires a roundtrip round·trip or round-trip also round trip n. A trip from one place to another and back, usually over the same route. purchase or Saturday night stay. AirTran Airways is the launch customer for the Boeing 717, today's newest, most innovative commercial aircraft. AirTran Airways is a subsidiary of AirTran Holdings, Inc. (Nasdaq: AAIR). Effective July 14, 2000, AirTran Holdings' common stock will be traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors AAI AAI American Association of Immunologists. . For more information and reservations, visit AirTran Airways' Web site at www.airtran.com, call your travel agent or call AirTran Airways at 800-AIRTRAN (800-247-8726) or 770-994-8258 (in Atlanta). Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : Statements regarding the Company's growth in market segments, revenue, earnings, load factors, yields, Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the bookings as well as statements about the Company's financial and operational foundation, future profitability and their impact on 2000 are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and are not historical facts. Instead, they are estimates or projections involving numerous risks or uncertainties, including but not limited to, consumer demand and acceptance of services offered by the Company, the Company's ability to maintain current cost levels, fare levels and actions by competitors, regulatory matters and general economic conditions. The Company disclaims any obligation or duty to update or correct any of its forward-looking statements.
AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)
For the three
months ended
June 30, Variance
2000 1999 Percentage
Operating revenues:
Passenger $ 156,214 $ 135,947 14.9%
Cargo 985 819 20.3%
Other 3,570 3,249 9.9%
Total operating revenues 160,769 140,015 14.8%
Operating expenses:
Salaries, wages and benefits 33,500 28,908 15.9%
Aircraft fuel 30,152 17,588 71.4%
Maintenance, materials and
repairs 19,023 24,407 (22.1%)
Distribution 10,597 10,604 (0.1%)
Landing fees and other rents 6,707 6,824 (1.7%)
Marketing and advertising 4,535 4,390 3.3%
Aircraft rent 3,095 1,305 137.2%
Depreciation 5,125 8,299 (38.2%)
Other operating 16,413 16,235 1.1%
Total operating expenses 129,147 118,560 8.9%
Operating income 31,622 21,455 47.4%
Interest (income) expense
Interest income (1,235) (503) 145.5%
Interest expense 9,269 5,938 56.1%
Interest expense, net 8,034 5,435 47.8%
Income before income taxes 23,588 16,020 47.2%
Income tax expense 1,000 1,061 (5.7%)
Net income $ 22,588 $ 14,959 51.0%
Basic earnings per share $ 0.34 $ 0.23 47.8%
Diluted earnings per share $ 0.33 $ 0.22 50.0%
EBITDA 36,747 29,754 23.5 %
Operating Margin 19.7 % 15.3 % 4.4 pts.
Basic shares outstanding 65,733 64,957 1.2 %
Diluted shares outstanding 68,986 68,565 0.6 %
Second Quarter Statistical Summary:
Revenue passengers 1,962,710 1,763,275 11.3 %
Revenue passenger miles (000's) 1,066,990 941,616 13.3 %
Available seat miles (000's) 1,465,605 1,398,639 4.8 %
Passenger load factor 72.8 % 67.3 % 5.5 pts.
Break-even load factor 61.8 % 59.4 % 2.4 pts.
Average fare $79.59 $77.10 3.2 %
Average yield per RPM 14.64(cents) 14.44(cents) 1.4 %
Passenger revenue per ASM 10.66(cents) 9.72(cents) 9.7 %
Operating cost per ASM 8.81(cents) 8.48(cents) 3.9 %
Non-fuel operating cost per ASM 6.75(cents) 7.22(cents) (6.5)%
Average cost of aircraft fuel
per gallon 85.55(cents) 49.69(cents) 72.2 %
Number of aircraft in fleet at
end of period 50 49
For the six
months ended
June 30, Variance
2000 1999 Percentage
Operating revenues:
Passenger $ 284,749 $ 250,960 13.5%
Cargo 2,073 1,966 5.4%
Other 6,355 6,962 (8.7%)
Total operating revenues 293,177 259,888 12.8%
Operating expenses:
Salaries, wages and benefits 66,267 57,050 16.2%
Aircraft fuel 59,172 31,349 88.8%
Maintenance, materials and
repairs 34,546 49,164 (29.7%)
Distribution 19,391 19,404 (0.1%)
Landing fees and other rents 13,739 13,011 5.6%
Marketing and advertising 9,044 10,007 (9.6%)
Aircraft rent 4,992 2,646 88.7%
Depreciation 10,223 15,643 (34.6%)
Other operating 32,343 31,158 3.8%
Total operating expenses 249,717 229,432 8.8%
Operating income 43,460 30,456 42.7%
Interest (income) expense
Interest income (2,254) (925) 143.7%
Interest expense 19,099 11,902 60.5%
Interest expense, net 16,845 10,977 53.5%
Income before income taxes 26,615 19,479 36.6%
Income tax expense 1,125 1,466 (23.3%)
Net income $ 25,490 $ 18,013 41.5%
Basic earnings per share $ 0.39 $ 0.28 39.3%
Diluted earnings per share $ 0.37 $ 0.26 42.3%
EBITDA 53,683 46,099 16.5 %
Operating Margin 14.8 % 11.7 % 3.1 pts.
Basic shares outstanding 65,724 64,936 1.2 %
Diluted shares outstanding 68,990 68,147 1.2 %
Six Month Statistical Summary:
Revenue passengers 3,554,093 3,262,861 8.9 %
Revenue passenger miles
(000's) 1,922,386 1,752,706 9.7 %
Available seat miles
(000's) 2,803,657 2,734,550 2.5 %
Passenger load factor 68.6 % 64.1 % 4.5 pts.
Break-even load factor 62.2 % 59.1 % 3.1 pts.
Average fare $80.12 $76.91 4.2 %
Average yield per RPM 14.81(cents) 14.32(cents) 3.4 %
Passenger revenue per ASM 10.16(cents) 9.18(cents) 10.7 %
Operating cost per ASM 8.91(cents) 8.39(cents) 6.2 %
Non-fuel operating cost
per ASM 6.80(cents) 7.24(cents) (6.1)%
Average cost of aircraft fuel
per gallon 87.86(cents) 45.97(cents) 91.1 %
Number of aircraft in fleet
at end of period 50 49
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