AirTran Holdings Inc. Reports 4Th Quarter, Year-End 1998 Financial Results.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)--Feb. 4, 1999--AirTran Holdings 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 ) today reported a net loss of $3.0 million, or $0.05 per share, exclusive of a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge, for the fourth quarter 1998. The company recorded a one-time charge related to the 737 fleet in the fourth quarter of $27.5 million or $0.42 per share. "In preparation for the delivery of the new Boeing 717s The Boeing 717 is a twin-engine, single-aisle jet airliner, developed for the 100-seat market. The airliner was designed by McDonnell Douglas as the MD-95, a third-generation derivative of the venerable DC-9. , the planned retirement of our 737 fleet will allow us to standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. the entire fleet and focus on our cost reduction efforts going into the new millennium," 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:
Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased 51.0 percent for the fourth quarter 1998, totaling $105.7 million compared to $70.0 million for the fourth quarter 1997. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased 29.0 percent, exclusive of one-time charges, on a per ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. (Available Seat Mile) basis for the fourth quarter 1998. Exclusive of one-time charges, operating expenses for fourth quarter 1998, totaled $103.0 million, or 7.7 cents per ASM, compared to $103.7 million, or 10.9 cents per ASM, for fourth quarter 1997. "Quarter over quarter, AirTran is showing continued growth," said 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. . "Now that we have `rebuilt' the airline to operate more efficiently and effectively, our efforts will be focused on sustained profitability. The systems are in place, and we will move forward, concentrating on the key points of reliability, safety and customer service." For the year ended December 31, 1998, AirTran reported a net loss of $40.8 million, or $0.63 per share, compared to a net loss of $96.7 million, or $1.72 per share, for year-end 1997. Total operating revenues for the year ended December 31, 1998, equaled $439.3 million, compared to $211.5 million for the year ended December 31, 1997. Operating expenses for 1998 totaled $457.9 million, resulting in an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $18.6 million. "We have much to look forward to," said Leonard. "We believe that in 1999 we will see the results of our reorganization, improved operations, hard work and caring customer service reflected in our bottom line." Leonard pointed out a number of operational and marketing successes achieved in 1998 on which AirTran seeks to build in the coming year. These included: -- Reconfigured route system to better maximize resources -- Expanded service to key business markets -- Roll-out and first flight of the Boeing 717-200, of which AirTran has ordered 50 and expects to begin to take delivery in the fall of 1999 -- Completed contracts with the pilot, mechanic and flight attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. labor unions labor union: see union, labor. -- Significant growth in traffic from 1997 to 1998 (year over year and month over month) -- FAA Aviation Maintenance Technician See PC technician and software technician. Safety Training Program `Special Recognition' corporate award for the airline as a whole -- FAA Aviation Maintenance Technician Safety Training Program `Diamond Award' certificates of excellence for each of AirTran's five maintenance bases -- Introduction of the industry's most innovative frequent flyer frequent flyer Hospital practice A popular term for a Pt who is regularly admitted to a particular ER or health care facility, for various reasons reward program -- Installation of business class seating in the airline's entire fleet -- Introduction of direct online booking via the AirTran website -- Initiation of the AirTran Corporate Travel Program "These efforts increased demand for our services and bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. our status as a leader in providing full service, everyday affordable air travel throughout the southeast, Florida, East Coast and numerous cities in the Northeast and Midwest," he said. "Being recognized as Entrepreneur entrepreneur (än'trəprənûr`) [Fr.,=one who undertakes], person who assumes the organization, management, and risks of a business enterprise. magazine's 1998 `Best Domestic Low-Fare Airline,'" he added, "confirms AirTran's success in rebuilding its operations over the past few years." AirTran operates over 130 daily departures from Atlanta and offers the convenience of easy, same concourse connections in Atlanta Hartsfield International Airport. Systemwide, AirTran operates over 270 daily departures to 29 cities. Unlike other airlines, AirTran 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. Currently operating a fleet of 50 jet aircraft, AirTran is the launch customer for the new Boeing 717-200 with a firm order of 50 aircraft and options for another 50. For more information call 800-AIRTRAN (800-247-8726), 770-994-8258 (in Atlanta), or visit the AirTran website at www.airtran.com. Note: Statements regarding the Company's or Management's intentions, expectations or predictions of the future, including statements regarding the Company's ability to achieve sustained future profitability, success in rebuilding operations and the impact of any of these factors on the future, 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 risk 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. 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 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, 1997. The Company disclaims any obligation or duty to update or correct any of its forward-looking statements. CONSOLIDATED STATEMENTS OF OPERATIONS FOLLOW -0-
AIRTRAN HOLDINGS, INC.
STATEMENTS OF OPERATIONS
(Dollars in thousands except per share data)
Audited
For quarter ended For year ended
December 31, December 31,
------------------- ---------------------
1998 1997 1998 1997
---------- -------- ---------- ---------
Operating revenues:
Passenger $ 101,045 $ 67,062 $ 420,901 $ 200,939
Cargo 1,186 541 3,488 2,250
Other 3,487 2,753 14,918 8,267
Total operating revenues 105,718 70,356 439,307 211,456
Operating expenses and
other, net:
Flight operations 10,109 8,262 46,853 22,260
Aircraft fuel 16,810 15,423 71,922 48,796
Maintenance 28,931 35,597 95,683 76,502
Station operations 14,330 14,282 77,777 49,625
Passenger services 5,597 3,189 20,858 9,558
Marketing and
advertising 3,274 8,883 17,199 16,998
Sales and reservations 15,605 7,680 58,178 19,025
General and administration 462 2,953 13,311 12,228
Depreciation 7,893 7,517 28,230 28,024
Impairment losses 27,492 399 27,853 124
Rebranding expenses - 4,918 - 5,243
Shutdown and other
non-recurring - 15,501 - 24,839
Total operating expenses 130,503 124,604 457,864 313,222
Operating income (loss) (24,785) (54,248) (18,557) (101,766)
Interest (income) expense:
Interest income (498) (1,746) (3,181) (6,659)
Interest expense 6,244 4,477 25,362 24,331
Interest expense, net 5,746 2,731 22,181 17,672
Loss before income taxes (30,531) (56,979) (40,738) (119,438)
Income tax benefit - (2,661) - (22,775)
Net loss $ (30,531) $ (54,318) $ (40,738) $ (96,663)
Basic loss per share $ (0.47) $ (0.91) $ (0.63) $ (1.72)
Diluted loss per share $ (0.47) $ (0.91) $ (0.63) $ (1.72)
Weighted average number
of shares outstanding
(basic and diluted) 64,898 59,504 64,641 56,068
See accompanying notes to consolidated financial statements.
Statistical Summary:
Revenue passengers
enplaned 1,417,132 799,489 5,462,827 3,005,731
RPM's (000) 763,546 495,913 3,244,539 1,597,585
ASM's (000) 1,337,176 951,397 5,442,224 3,017,892
Load factor 57.1% 52.1% 59.6% 52.9%
Average fare $ 71.30 $ 83.88 $ 77.05 $ 66.85
Passenger yield (cents) $ 0.132 $ 0.135 $ 0.130 $ 0.126
Passenger revenue per
ASM (cents) $ 0.076 $ 0.070 $ 0.077 $ 0.067
Operating cost per ASM
(excluding one time
charges) cents $ 0.077 $ 0.109 $ 0.079 $ 0.094
Fuel cost per gallon
(cents) $ 0.508 $ 0.670 $ 0.560 $ 0.670
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion