AirTran Swings To Quarterly Profit
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AirTran Holdings, parent of AirTran Airways, on Wednesday reported a higher-than-expected second-quarter profit against a year-earlier loss as it cut operating expenses to cope with weak air travel.
The company reported net income of USD$78.4 million, or 56 cents a share, for the second quarter, compared with a loss of USD$14.8 million, or 14 cents a share, a year earlier.
Operating revenue fell about 13 percent to USD$603.7 million, while operating expenses declined 27 percent.
Load factor was 80.7 percent. Capacity, measured in available seat miles, was down 7.6 percent in the quarter.
Over the past year, AirTran has moved to reduce debt and revamped fuel-hedge contracts to reduce the potential for losses tied to oil prices.
"The combination of reduced capacity, lower fuel prices and the lowest cost structure of any major airline allows us to compete effectively," AirTran Chief Financial Officer Arne Haak said in a statement.