Saturday, October 23, 2010

AirTran Airlines posts 3rd quarter earnings

AirTran MD-95 (717-231) (c/n 55079/5042) N926AT, ex Trans World Airlines (TWA) N412TW, turns onto Rwy 19R at General Mitchell International Airport (MKE/KMKE) at Milwaukee, Wisconson.
(Photo by Michael Carter)

AirTran Holdings, which has agreed to be acquired by low-cost rival Southwest Airlines, posted weaker-than-expected results on Friday as costs rose. Net income for the Orlando, Florida-based parent of AirTran Airways came to USD$36.2 million, for the third quarter, compared to USD$10.4 million a year earlier.

Quarterly operating revenue rose about 12 percent to USD$667.9 million, compared with USD685.9 million expected by analysts. Operating expenses rose 9 percent, and AirTran noted higher costs for fuel, maintenance and aircraft insurance. AirTran, which flies to cities in the United States and the Caribbean, said the Southwest deal was expected to be completed in the first half of 2011.

Southwest on Thursday reported a quarterly profit against a year-earlier loss and said strength in its business was expected to continue for the rest of the year as consumers seek value. Southwest said the AirTran purchase would allow it to expand low-fare service to major US East Coast markets, particularly Atlanta, a hub city for AirTran.


1 comment:

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