Second Quarter A Record-breaker: AirTran
By Brian Straus, ATW Online | Jul. 28, 2006
The records piled up for AirTran Airways in the second quarter, with net income of $32 million--nearly triple the year-ago quarter's $11.4 million profit--the highest in any three-month period in its 13-year history.All-time quarterly records also were set for RPMs, capacity, enplaned passengers and load factor, figures that "speak clearly of the customers' demand for our product," according to Chairman and CEO Joe Leonard.
Revenues surged 44.2% to $528.2 million and expenses climbed 36.6% to $473.7 million as fuel costs rose 61.7% to $175.1 million. Operating profit jumped to $54.5 million from $19.5 million in the year-ago quarter.
AirTran flew 3.7 billion RPMs, up 25.9%, against a 23.3% increase in capacity to 4.74 billion ASMs, lifting load factor 2.4 points to 78.1%. It took delivery of six 737s and two 717s during the quarter. Passenger RASM grew 16.8% to 10.75 cents and yield increased 13.2% to 13.76 cents. "Our unit revenue performance was especially gratifying since we accomplished it on top of a 23.3% increase in capacity," President and COO Bob Fornaro said. Unit costs rose 10.8% to 9.99 cents but went up just 1.6% to 6.3 cents excluding fuel.
For the six months ended June 30, the carrier posted net income of $27.4 million, eight times the $3.3 million earned in the year-ago period. Revenue was up 41.8% to $944.2 million, expenses rose 36.3% to $894.2 million and operating income increased to $50 million from $10.1 million.