AirTran Holdings Reports Fourth Consecutive Quarterly Profit; Revenues Increase 31 Percent to $208 Million; Unit Costs Decline 4.3 Percent.

Business Editors/Travel Writers

ORLANDO, Fla.--(BUSINESS WIRE)--April 22, 2003

AirTran Holdings, Inc., (NYSE:AAI), the parent company of AirTran Airways, Inc., today reported its results for the first quarter 2003:

-- Net income for the first quarter was $2.0 million or $0.03 per

diluted share versus a loss of $3.0 million or $0.04 per

diluted share in the year-earlier period.

-- Operating revenues for the quarter totaled $208.0 million, a

30.6 percent increase over $159.3 million from the first

quarter 2002.

-- Non-fuel operating costs per available seat mile (CASM)

declined by 7.6 percent to 6.60 cents. CASM declined by 4.3

percent to 8.63 cents in the first quarter despite a 23.1

percent increase in the price of fuel.

-- Traffic, or revenue passenger miles (RPMs), increased 31.3

percent over the year-earlier period, which set a new

quarterly record. Capacity, or available seat miles (ASMs),

increased 28.5 percent, also setting a company record for that

period.

"The achievement of announcing our fourth consecutive profitable quarter in such a challenging economic climate should make every member of the AirTran Airways team proud today," said Joe Leonard, chairman and chief executive officer. "Our airline is well-positioned to continue its operational and financial success into the remainder of 2003. We welcome the upcoming opportunities to bring our low fares and exceptional service to travelers across the country, now from the East Coast to the West Coast."

The airline served 2.6 million passengers, a first quarter record and an increase of 20.4 percent over the 2.1 million passengers served in the same quarter last year. Load factor increased 1.5 points to 67.8 percent.

Robert Fornaro, president and chief operating officer remarked: "Several years ago travelers chose AirTran Airways primarily because of our low fares. While we remain committed to offering passengers an affordable way to travel, the team at AirTran Airways has built a brand that has attracted a loyal customer base. From our caring customer service to an affordable Business Class, many travelers now say AirTran Airways is their carrier of choice. In a recent independent customer survey, our passengers told us they were very happy with their AirTran Airways experience. Nearly 82 percent of those surveyed were very satisfied, and 90 percent said they were likely to fly with AirTran Airways again."

Stan Gadek, senior vice president of finance and chief financial officer said, "AirTran Airways benefited this quarter from the outstanding productivity of our Crew Members, a reduction in unit costs and continued sound financial discipline. Maintaining low costs is key to offering low fares and generating profits for our shareholders."

Operating highlights for the quarter include:

-- Announced westward expansion with three new destinations:

Denver (May 21); Los Angeles (June 4); and Las Vegas (June

11).

-- Enhanced service in Akron/Canton, Atlanta,

Baltimore/Washington, Boston, Dayton, Flint, Grand Bahama

Island, Milwaukee, Moline/Quad Cities, Myrtle Beach, New York

City, Orlando, Philadelphia, Pittsburgh, and Raleigh/Durham.

-- Launched a new advertising campaign entitled "GO" that

includes television, magazine, newspaper, outdoor and digital

components.

-- Took delivery of seven Boeing 717s increasing the total 717

fleet to 57.

-- Introduced AirTran Vacations, an online travel planning

product, with Expedia, Inc.

-- Relaunched X-Fares, the airline's popular standby program for

young customers between the ages of 18 and 22.

-- Won three awards at the OnBoard Services Awards, including

first place in the uniforms and uniform software solutions

categories.

The airline will provide an online, real-time webcast of its first-quarter earnings conference call today at 10:00 a.m. (EDT). Beginning approximately two hours after the initial conference call is completed, a replay of the webcast will be available.

To access the webcast, go to the "Investor Relations" area of AirTran Airways' Web site (airtran.com), accessible from the homepage. Once there, click on either the "Overview" or "Calendar" buttons, and follow the prompts for the webcast. The broadcast will also be available at http://www.streetevents.com.

Editor's note: Statements regarding the Company's operational and financial success, business model, ability to return value to investors, improved operational performance and our ability to maintain or improve our low costs are forward-looking statements 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. 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 for the year ended December 31, 2002. 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)


                             Three Months Ended
                                  March 31,               Percent
                            2003             2002         Change
                        ----------       ----------       -------

Operating Revenues:
  Passenger              $201,900         $155,689          29.7
  Cargo                       383              243          57.6
  Other                     5,719            3,372          69.6
                        ----------       ----------
    Total operating
     revenues             208,002          159,304          30.6

Operating Expenses:
  Salaries, wages and
   benefits                54,591           45,252          20.6
  Aircraft fuel            47,144           33,805          39.5
  Aircraft rent            26,419           13,758          92.0
  Distribution             10,772           10,705           0.6
  Maintenance, materials
   and repairs             15,079           10,563          42.8
  Landing fees and
   other rents             11,484           10,010          14.7
  Aircraft insurance
   and security services    5,550            7,808         (28.9)
  Marketing and
   advertising              7,077            5,675          24.7
  Depreciation              3,322            4,411         (24.7)
  Other operating          18,186           20,249         (10.2)
                        ----------       ----------
    Total operating
     expenses             199,624          162,236          23.0
                        ----------       ----------
Operating Income (Loss)     8,378           (2,932)            -

Other (Income) Expense:
  Interest income            (527)            (533)         (1.1)
  Interest expense          6,869            7,479          (8.2)
  SFAS 133 adjustment           -           (5,857)            -
                        ----------       ----------
Other expense, net          6,342            1,089             -
                        ----------       ----------
Income (Loss) Before
 Income Taxes               2,036           (4,021)            -

Income Tax Expense
 (Benefit)                      -             (987)            -
                        ----------       ----------
Net Income (Loss)          $2,036          $(3,034)            -
                        ==========       ==========

Earnings (Loss) per Common Share
  Basic                     $0.03           $(0.04)            -
  Diluted                   $0.03           $(0.04)            -

Weighted-average Shares Outstanding
  Basic                    71,522           69,786           2.5
  Diluted                  74,476           69,786           6.7

  EBITDA                  $11,700           $1,479             -
  Operating margin            4.0 percent     (1.8) percent  5.8 pts.
  Net margin                  1.0 percent     (1.9) percent  2.9 pts.

First Quarter Statistical Summary:
  Revenue passengers    2,560,160        2,126,405          20.4
  Revenue passenger
   miles (000s)         1,567,412        1,193,338          31.3
  Available seat miles
   (000s)               2,311,961        1,799,189          28.5
  Block hours              64,929           52,860          22.8
  Passenger load factor      67.8 percent     66.3 percent   1.5 pts.
  Break-even load factor     67.1 percent     68.0 percent  (0.9)pts.
  Average fare             $78.86           $73.22           7.7
  Average yield per RPM     12.88 cents      13.05 cents    (1.3)
  Passenger revenue
   per ASM                   8.73 cents       8.65 cents     0.9
  Operating cost per ASM     8.63 cents       9.02 cents    (4.3)
  Non-fuel operating
   cost per ASM              6.60 cents       7.14 cents    (7.6)
  Average cost of aircraft
   fuel per gallon         107.55 cents      87.38 cents    23.1
  Weighted-average
   number of aircraft          67               60          11.7