AirTran Holdings, Inc., Reports Year-End Net Income of $21.7 Million and Fourth Quarter Net Loss of $12.9 Million Before Non-Recurring Items.Business Editors ORLANDO Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , Fla.--(BUSINESS WIRE)--Jan. 29, 2002 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., (NYSE NYSE See: New York Stock Exchange :AAI AAI American Association of Immunologists. ), 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 , today reported net income for the year ending December December: see month. 31, 2001, of $21.7 million or $0.32 per share and a net loss for the fourth quarter of $12.9 million or $0.19 per share, all before non-recurring adjustments. Including the adjustments which pertained to charges for reductions in aircraft fleet value, aircraft lease termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. , special charges related to September September: see month. 11, the recognition of a government grant, and debt discount related to the conversion of convertible debt, AirTran Holdings recorded a net loss of $2.8 million or $0.04 per basic share for fiscal year 2001 and a net loss of $14.2 million or $0.20 per basic share for the fourth quarter. Revenue for the fiscal year 2001 increased by 6.6 percent to $665.2 million compared to $624.1 million in 2000. 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. before adjustments decreased 31.8 percent to $55.3 million versus $81.2 million in the prior year. Including pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta net operating adjustments of $19.6 million, the company recorded operating income of $35.7 million. The charges related to the conversion of convertible debt were recorded as interest expense and totaled $4.3 million on a pre-tax basis. A summary of the pre-tax, non-recurring adjustments in 2001 follows (millions):
Reduction of 737 and DC-9 fleet values and lease
termination $(46.1)
Special Charges (2.5)
U.S. Government Grant 29.0
Debt discount on convertible debt (4.3)
-------
Net non-recurring charges $(23.9)
"Once again, the employees of AirTran Airways have come through in the face of adversity ad·ver·si·ty n. pl. ad·ver·si·ties 1. A state of hardship or affliction; misfortune. 2. A calamitous event. and have performed beyond expectations during a period of some of the greatest challenges our industry has ever faced," said Joe Leonard For the baseball player, see . 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 AirTran may mean:
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. . During the fourth quarter 2001, 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), decreased 6.1 percent on a 3.3 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 decreased by 6.4 percentage points to 63.8 percent from 70.2 percent, and yield (average fare per mile) declined 14.3 percent to 12.92 cents from 15.08 cents in the year earlier period. Passenger revenue per available seat mile (RASM RASM Revenue per Available Seat Mile RASM Reliability, Availability, Scalability and Manageability (Red Hat, Inc.) RASM Rear Admiral Submarines (UK) RASM Recorded Announcement Systems Manager ) was 8.24 cents compared to 10.58 cents in the fourth quarter 2000. AirTran Airways served 1.9 million passengers in the fourth quarter of 2001 compared to 2.0 million passengers in fourth quarter 2000. Also during the fourth quarter, the company took delivery of five new Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. 717 aircraft. For the year 2001, RPMs increased 9.5 percent to 4.5 billion, compared to 4.1 billion for 2000 while ASMs grew from 5.9 billion in 2000 to 6.5 billion, an increase of 11.6 percent year over year. Load factor was 68.9 percent for the fiscal year, a reduction of 1.3 points from 2000's load factor of 70.2 percent. Year-over-year change in passenger RASM was 3.9 percent, from 10.32 cents in 2000 to 9.92 cents in 2001. During 2001, AirTran Airways served 8.3 million passengers, an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal company record, compared to 7.6 million passengers in 2000. "Despite the increasing challenges presented to our industry, we are a stronger company than we were September 10th, thanks largely to our employees who have worked so hard to provide a consistently secure and reliable product to our customers," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Fornaro, AirTran Airways' president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "We are confident that we will return to profitability in the second quarter 2002 and for the year," stated Fornaro. "Our fourth quarter unit costs declined 8.8 percent year-over-year to 8.8 cents as a result of lower fuel prices and our continuing effort to reduce internal costs," said Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Gadek, AirTran Airways' senior vice president and chief financial officer. "Maintaining a low cost structure is crucial to our success in 2002 as we continue to take aircraft and contend with the increased costs of security and insurance," said Gadek. EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring Costs - EBITDAR An indicator of a company's financial performance calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, amortization, and restructuring costs) margin for the fourth quarter was 9.0 percent and for the fiscal year 2001 was 17.9 percent. Highlights of the airline's year 2001 accomplishments include: -- In conjunction with an agreement with the Boeing Company, completed refinancing of $230 million of the airline's outstanding debt, due April 15, 2001 -- Listed on the New York Stock Exchange on August 15, 2001 -- Reached an agreement with the National Pilots Association maintaining an amicable relationship with the airline's pilot work group -- Negotiated an industry-leading agreement with the International Brotherhood of Teamsters and the National Pilots Association to avoid involuntary furloughs following September 11 -- Successfully launched service to new destinations, including Pensacola and Tallahassee, Fla., and Baltimore-Washington, along with several new nonstop routes -- Set new records for internet revenue and tickets booked, resulting in more than half of our tickets being booked online by year-end -- Named "Best Low Fare Airline 2001" by Entrepreneur Magazine -- Received a sixth consecutive Aircraft Maintenance Technician Diamond Certificate of Excellence from the FAA for Maintenance Training -- Took delivery of fourteen additional Boeing 717 aircraft, bringing the total to 30 at year-end representing 50 percent of the fleet -- Named "Airline of the Year" by the Southeast Chapter of the American Society of Travel Agents for the third consecutive year -- Served 8.3 million passengers in 2001 - an all-time Company record AirTran Airways provides affordable air travel with 336 flights a day to 36 cities 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. . The airline's hub is at Hartsfield Hartsfield is a surname, which may be used in reference to:
Unlike other airlines, AirTran Airways 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 Saturday: see week; Sabbath. night stay. The airline offers a Business Class any business can afford, all-assigned seating, a generous frequent flier frequent flier n. One who travels often by air, especially on one airline. fre  quent-fli program, and a corporate program called A2B A2B Anti-Two-BlockA2B Administration-to-Broker A2B Administration to Business . For more information and reservations, visit http://www.airtran.com (America Online See AOL. Keyword (1) A word used in a text search. (2) A word in a text document that is used in an index to best describe the contents of the document. (3) A reserved word in a programming or command language. 1. : AirTran), call your travel agent or AirTran Airways at 1-800-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 return to profitability and the Company's ability to maintain low costs 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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. matters and general economic conditions. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000. 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
December 31, Variance
2001 2000 Percentage
-------------- -------------- -----------
Operating revenues:
Passenger $ 131,253 $ 163,271 (19.6)%
Cargo 233 1,206 (80.7)%
Other 3,494 4,982 (29.9)%
-------------- --------------
Total operating
revenues 134,980 169,459 (20.3)%
Operating expenses:
Salaries, wages
and benefits 39,821 35,701 11.5 %
Aircraft fuel 30,004 44,043 (31.9)%
Maintenance,
materials and
repairs 12,130 17,733 (31.6)%
Distribution 9,169 10,571 (13.3)%
Landing fees and
other rents 8,516 8,351 2.0 %
Marketing and advertising 3,623 2,972 21.9 %
Aircraft rent 11,998 3,616 231.8 %
Depreciation 5,321 6,959 (23.5)%
Other operating 19,572 18,926 3.4 %
Government grant 1,300 - NM
-------------- --------------
Total operating
expenses 141,454 148,872 (5.0)%
-------------- --------------
Operating income
(loss) (6,474) 20,587 NM
Other (income) expense
Interest income (503) (2,637) (80.9)%
Interest expense 7,762 11,642 (33.3)%
SFAS133 adjustment 497 - NM
-------------- --------------
Other expense, net 7,756 9,005 (13.9)%
-------------- --------------
Income (loss)
before taxes (14,230) 11,582 NM
Provision for income taxes (72) (1,473) NM
-------------- --------------
Net income (loss) $ (14,158) $ 13,055 NM
============== ==============
Earnings (loss) per common share
Basic $ (0.20) $ 0.20 NM
Diluted $ (0.20) $ 0.19 NM
Weighted average shares outstanding
Basic 69,403 65,820 5.4 %
Diluted 69,403 69,666 (0.4)%
Fourth Quarter Statistical Summary:(a)
Revenue passengers 1,853,398 1,983,858 (6.6)%
Revenue passenger
miles (000s) 1,016,277 1,082,784 (6.1)%
Available seat miles
(000s) 1,593,348 1,542,890 3.3 %
EBITDAR $ 12,145 $ 31,162 (61.0)%
Operating margin (3.8)% 12.1 % (15.9)pts.
Net margin (9.5)% 7.7 % (17.2)pts.
Block hours 45,498 45,662 (0.4)%
Passenger load factor 63.8 % 70.2 % (6.4)pts.
Break-even load factor 70.0 % 65.2 % 4.8 pts.
Average fare $ 70.82 $ 82.30 (13.9)%
Average yield per RPM 12.92(cent) 15.08(cent) (14.3)%
Passenger revenue per
ASM 8.24(cent) 10.58(cent) (22.1)%
Operating cost per ASM 8.80(cent) 9.65(cent) (8.8)%
Non-fuel operating cost
per ASM 6.91(cent) 6.79(cent) 1.8 %
Average cost of aircraft
fuel per gallon 85.87(cent) 122.86(cent) (30.1)%
Weighted average number
of aircraft 59 54 9.3 %
(a) Where appropriate, excludes government grant adjustment of
$1.3 million.
Note: NM denotes calculation not meaningful.
For the year ended
December 31, Variance
2001 2000 Percentage
-------- ------- -----------
Operating revenues:
Passenger $ 648,485 $ 604,826 7.2 %
Cargo 1,937 4,183 (53.7)%
Other 14,741 15,085 (2.3)%
--------- ---------
Total operating
revenues 665,163 624,094 6.6 %
Operating expenses:
Salaries, wages and
benefits 159,057 137,391 15.8 %
Aircraft fuel 139,355 140,404 (0.7)%
Maintenance, materials
and repairs 68,670 73,238 (6.2)%
Distribution 45,400 39,972 13.6 %
Landing fees and other
rents 35,672 28,752 24.1 %
Marketing and advertising 18,468 16,412 12.5 %
Aircraft rent 35,363 12,616 180.3 %
Depreciation 28,159 23,087 22.0 %
Other operating 79,698 71,071 12.1 %
Impairment loss/lease
termination 46,069 - NM
Special charges 2,494 - NM
Government grant (28,951) - NM
--------- ---------
Total operating
expenses 629,454 542,943 15.9 %
--------- ---------
Operating income 35,709 81,151 (56.0)%
Other (income) expense
Interest income (4,959) (5,602) (11.5)%
Interest expense 37,441 39,317 (4.8)%
Convertible debt discount
amortization 4,291 - NM
SFAS133 adjustment (2,204) - NM
--------- ---------
Other expense, net 34,569 33,715 2.5 %
--------- ---------
Income before taxes and
cumulative effect
of change in acctg.
principle 1,140 47,436 (97.6)%
Provision for income taxes 3,240 - NM
--------- ---------
Income (loss) before
cumulative effect of
change in acctg. principle (2,100) 47,436 NM
Cumulative effect of
change in acctg.
principle, net of tax (657) - NM
--------- ---------
Net income (loss) $ (2,757) $ 47,436 NM
========= =========
Basic earnings (loss)
per common share
Earnings (loss) before
cumulative effect of
change in acctg.
principle $ (0.03) $ 0.72 NM
Cumulative effect of
change in acctg.
principle (0.01) - NM
--------- ---------
Earnings (loss) per
common share, basic $ (0.04) $ 0.72 NM
========= =========
Diluted earnings (loss)
per common share
Earnings (loss) before
cumulative effect of
change in acctg.
principle $ (0.03) $ 0.69 NM
Cumulative effect of
change in acctg.
principle (0.01) - NM
--------- ---------
Earnings (loss) per
common share, diluted $ (0.04) $ 0.69 NM
========= =========
Weighted average shares outstanding
Basic 67,774 65,759 3.1 %
Diluted 67,774 69,175 (2.0)%
Twelve Month Statistical Summary:(b)
Revenue passengers 8,302,732 7,566,986 9.7 %
Revenue passenger
miles (000s) 4,506,007 4,115,745 9.5 %
Available seat miles
(000s) 6,537,756 5,859,396 11.6 %
EBITDAR $ 118,843 $ 116,854 1.7 %
Operating margin 8.3 % 13.0 % (4.7)pts.
Net margin 3.3 % 7.6 % (4.3)pts.
Block hours 190,754 172,059 10.9 %
Passenger load factor 68.9 % 70.2 % (1.3)pts.
Break-even load factor 66.3 % 64.7 % 1.6 pts.
Average fare $ 78.11 $ 79.93 (2.3)%
Average yield per RPM 14.39(cent) 14.70(cent) (2.1)%
Passenger revenue per ASM 9.92(cent) 10.32(cent) (3.9)%
Operating cost per ASM 9.33(cent) 9.27(cent) 0.6 %
Non-fuel operating cost
per ASM 7.20(cent) 6.87(cent) 4.8 %
Average cost of aircraft
fuel per gallon 93.85(cent) 100.89(cent) (7.0)%
Weighted average number of
aircraft 55 51 7.8 %
(b) Where appropriate, excludes impairment loss/lease termination,
special charges, government grant and debt discount on covertible
debt of $46.1 million, $2.5 million, $29.0 million, and $4.3
million, respectively.
Note: NM denotes calculation not meaningful.
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