AirTran Holdings Reports Net Income of $7.5 Million for Fourth Quarter and $10.7 Million for the Full Year; Unit Costs Improve by 8.8% for the Year.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. 28, 2003 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 , Inc., today reported net income for the fourth quarter 2002 of $7.5 million or $0.10 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 versus a loss of $14.2 million or $0.20 per diluted share in the year earlier period. Fourth-quarter results of 2001 were reduced by $1.3 million or $0.02 per diluted share representing an adjustment to amounts received under a government grant program. There were no special adjustments in the fourth quarter of 2002. Net income for the full-year 2002 was $10.7 million or $0.15 per diluted share compared to a profit of $21.7 million for 2001 before non-recurring adjustments. The full-year 2002 results included a credit of $0.6 million or $0.01 per diluted share representing the final adjustment to the government grant program. During 2001 the Company recorded net pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta adjustments of $23.9 million and an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. adjustment of $0.7 million, resulting in a reported net loss for 2001 of $2.8 million or $0.04 per share. "Once again, we are pleased to report another quarter of earnings, the third consecutive quarter of profitability this year," 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. , chairman and chief executive officer. "On behalf of every member of the AirTran Airways team, I would like to thank our customers for their support. We appreciate your business and look forward to serving you again throughout 2003." During the fourth quarter, capacity increased 39.3% year over year as AirTran Airways continued to add new fuel efficient Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. 717 aircraft. Traffic increased 44.6% resulting in a 2.4 percentage point increase in load factor. Passenger yield increased 2.3% to 13.2 cents resulting in a 6.3% increase in year over year unit revenue to 8.8 cents. Total revenue for 2002 increased 10.3% to $733.4 million compared to $665.2 million in 2001. Revenue passengers increased to 9.7 million or 16.3% on a year over year basis. Capacity increased 26.3% in 2002 driven by an increase of 5 aircraft, net of retirements, while traffic increased 23.9% resulting in a load factor of 67.6%. 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. L. Fornaro, 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. remarked: "Our operating performance steadily improved throughout the year as we added new 717s. In addition, our employees continued to deliver the caring customer service that distinguishes AirTran Airways from the other airlines. Great service and low fares will keep our customers coming back." Fourth quarter operating cost per available seat mile improved by 4.8% to 8.4 cents compared to 8.8 cents in the fourth quarter of 2001. For the full year, unit costs improved 8.8% to 8.5 cents. 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, senior vice president of finance and chief financial officer said: "AirTran AirTran may mean:
Highlights of the airline's accomplishments in 2002 include: -- Successfully launched service to new destinations, including Kansas City, Milwaukee, Rochester, West Palm Beach and Wichita, resulting in a total of 40 destinations and 400 flights each day -- Launched AirTran JetConnect, a new regional jet service operated by Air Wisconsin -- In partnership with Juniper Bank of Wilmington, Del., debuted reward-earning Visa credit card -- Broke ground with Atlanta Mayor Shirley Franklin and members of the Atlanta City Council on a $14.5 million, 56,700 square-foot hangar at Hartsfield Atlanta International Airport -- Served 9.7 million passengers in 2002 and 2.5 million in the fourth quarter - an all-time Company record for both periods -- Took delivery of the 50th Boeing 717 aircraft and secured financing for 23 additional deliveries in 2003 -- Reached milestone of 56% of all bookings transacted via the Internet -- Upgraded features on airtran.com including seat assignments on select fares and, through Expedia's Worldwide Travel Exchange, the ability to book hotel rooms -- Named "Airline of the Year" by the Southeast Chapter of the American Society of Travel Agents for the fourth consecutive year -- Named "Best Low Fare Airline" for a third time by Entrepreneur magazine -- Forged a strategic partnership with The Coca-Cola Company and became the first airline to offer Vanilla Coke(R) and Dasani(R) Water onboard 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 success, business model, improved operational performance and our ability to maintain or improve 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 December: see month. 31, 2001. The Company disclaims any obligation or duty to update or correct any of its forward-looking statements. Attached: Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Operations
AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)
Three Months Ended
December 31, Percent
2002 2001(i) Change
---------- ---------- -------
Operating Revenues:
Passenger $194,347 $131,253 48.1
Cargo 280 233 20.1
Other 5,643 3,494 61.5
---------- ----------
Total operating revenues 200,270 134,980 48.4
Operating Expenses:
Salaries, wages and benefits 55,563 39,821 39.5
Aircraft fuel 40,961 30,004 36.5
Aircraft rent 22,939 11,998 91.2
Distribution 10,184 9,169 11.1
Maintenance, materials and
repairs 12,192 12,130 0.5
Landing fees and other rents 10,726 8,516 26.0
Aircraft insurance and security
services 7,518 4,176 80.0
Marketing and advertising 4,365 3,623 20.5
Depreciation 4,411 5,321 (17.1)
Other operating 17,050 15,396 10.7
Government grant - 1,300 -
---------- ----------
Total operating expenses 185,909 141,454 31.4
---------- ----------
Operating Income (Loss) 14,361 (6,474) -
Other (Income) Expense:
Interest income (500) (503) (0.6)
Interest expense 7,358 7,762 (5.2)
SFAS 133 adjustment - 497 -
---------- ----------
Other expense, net 6,858 7,756 (11.6)
---------- ----------
Income (Loss) Before Income Taxes 7,503 (14,230) -
Income Tax Expense (Benefit) - (72) -
---------- ----------
Net Income (Loss) $7,503 $(14,158) -
========== ==========
Earnings (Loss) per Common Share
Basic $0.11 $(0.20) -
Diluted $0.10 $(0.20) -
Weighted-average Shares Outstanding
Basic 70,992 69,403 2.3
Diluted 72,131 69,403 3.9
EBITDAR(ii) $41,711 $12,145 243.4
Operating margin(ii) 7.2 % (3.8)% 11.0 pts.
Net margin(ii) 3.7 % (9.5)% 13.2 pts.
Fourth Quarter Statistical Summary:(ii)
Revenue passengers 2,509,191 1,853,398 35.4
Revenue passenger miles (000s) 1,469,616 1,016,277 44.6
Available seat miles (000s) 2,219,048 1,593,348 39.3
Block hours 62,557 45,498 37.5
Passenger load factor 66.2 % 63.8 % 2.4 pts.
Break-even load factor 63.7 % 70.0 % (6.3)pts.
Average fare $77.45 $70.82 9.4
Average yield per RPM 13.22 cents 12.92 cents 2.3
Passenger revenue per ASM 8.76 cents 8.24 cents 6.3
Operating cost per ASM 8.38 cents 8.80 cents (4.8)
Non-fuel operating cost per ASM 6.53 cents 6.91 cents (5.5)
Average cost of aircraft fuel per
gallon 92.62 cents 85.87 cents 7.9
Weighted-average number of
aircraft 64 59 8.5
(i)Certain 2001 amounts have been reclassified to conform with 2002
presentation.
(ii)Where appropriate, statistical calculations for 2001 exclude a
government grant adjustment of $1.3 million.
AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)
Year Ended
December 31, Percent
2002 2001(i) Change
---------- ---------- -------
Operating Revenues:
Passenger $713,711 $648,486 10.1
Cargo 1,206 1,937 (37.8)
Other 18,453 14,741 25.2
---------- ----------
Total operating revenues 733,370 665,164 10.3
Operating Expenses:
Salaries, wages and benefits 203,435 159,057 27.9
Aircraft fuel 154,467 139,355 10.8
Aircraft rent 72,690 35,363 105.6
Distribution 43,115 45,400 (5.0)
Maintenance, materials and
repairs 47,288 68,670 (31.1)
Landing fees and other rents 42,291 35,672 18.6
Aircraft insurance and security
services 29,323 12,511 134.4
Marketing and advertising 20,967 18,468 13.5
Depreciation 17,072 28,159 (39.4)
Other operating 72,159 67,188 7.4
Impairment loss/lease termination - 46,069 -
Special charges - 2,494 -
Government grant (640) (28,951) (97.8)
---------- ----------
Total operating expenses 702,167 629,455 11.6
---------- ----------
Operating Income 31,203 35,709 (12.6)
Other (Income) Expense:
Interest income (2,102) (4,959) (57.6)
Interest expense 29,203 37,441 (22.0)
Convertible debt discount
amortization - 4,291 -
SFAS 133 adjustment (5,857) (2,204) 165.7
---------- ----------
Other expense, net 21,244 34,569 (38.5)
---------- ----------
Income Before Income Taxes and
Cumulative Effect of Change in
Accounting Principle 9,959 1,140 773.6
Income Tax Expense (Benefit) (786) 3,240 -
---------- ----------
Income (Loss) Before Cumulative
Effect of Change in
Accounting Principle 10,745 (2,100) -
Cumulative Effect of Change in
Accounting Principle,
Net of Tax - (657) -
---------- ----------
Net Income (Loss) $10,745 $(2,757) -
========== ==========
Basic Earnings (Loss) per Common Share
Earnings (loss) before cumulative
effect of change in
accounting principle $0.15 $(0.03) -
Cumulative effect of change in
accounting principle - (0.01) -
---------- ----------
Earnings (loss) per common share,
basic $0.15 $(0.04) -
========== ==========
Diluted Earnings (Loss) per Common Share
Earnings (loss) before cumulative
effect of change in
accounting principle $0.15 $(0.03) -
Cumulative effect of change in
accounting principle - (0.01) -
---------- ----------
Earnings (loss) per common share,
diluted $0.15 $(0.04) -
========== ==========
Weighted-average Shares Outstanding
Basic 70,409 67,774 3.9
Diluted 73,153 67,774 7.9
EBITDAR(ii) $120,325 $118,843 1.2
Operating margin(ii) 4.2 % 8.3 % (4.1)pts.
Net margin(ii) 1.4 % 3.1 % (1.7)pts.
AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)
Twelve Month Statistical Summary:(ii)
Revenue passengers 9,653,777 8,302,732 16.3
Revenue passenger miles (000s) 5,581,263 4,506,007 23.9
Available seat miles (000s) 8,255,809 6,537,756 26.3
Block hours 236,581 190,754 24.0
Passenger load factor 67.6 % 68.9 % (1.3)pts.
Break-even load factor 66.7 % 66.3 % 0.4 pts.
Average fare $73.93 $78.11 (5.4)
Average yield per RPM 12.79 cents 14.39 cents (11.1)
Passenger revenue per ASM 8.64 cents 9.92 cents (12.9)
Operating cost per ASM 8.51 cents 9.33 cents (8.8)
Non-fuel operating cost per ASM 6.64 cents 7.20 cents (7.8)
Average cost of aircraft fuel per
gallon 90.37 cents 93.85 cents (3.7)
Weighted-average number of
aircraft 62 55 12.7
(i)Certain 2001 amounts have been reclassified to conform with 2002
presentation.
(ii)Where appropriate, statistical calculations for 2002 exclude a
government grant of $0.6 million. Statistical calculations for
2001 exclude impairment loss/lease termination, special charges,
government grant and debt discount on convertible debt of
$46.1 million, $2.5 million, $29.0 million and $4.3 million,
respectively.
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