Major Airline Posts Profit!!
04-22-2009, 03:24 AM
#1
A moment please...
Thread Starter
Joined APC: Sep 2007
Position: Just passin' thru
Posts: 769
Major Airline Posts Profit!!
6:53AM Air Tran Holdings beats by $0.17, beats on revs (AAI) 5.58 : Reports Q1 (Mar) earnings of $0.21 per share, $0.17 better than the First Call consensus of $0.04; revenues fell 9.1% year/year to $542 mln vs the $535.5 mln consensus. The combination of lower fuel prices, low costs, and quality service coupled with fleet and route network adjustments has resulted in the co posting its best first quarter earnings in history. Total fuel costs for the quarter were down 50.5% y/y on a 7.2% reduction in capacity as measured by available seat miles (ASMs). The co achieved the highest first quarter load factor in co history at 76.3%. Co says, "While the weakening economy has begun to pressure prices throughout the airline sector, our industry leading, low-cost structure has allowed us to offset this challenge. We are committed to maintaining our low cost advantage and expect to remain profitable every quarter this year despite the current economic environment."
04-22-2009, 04:58 AM
#4
Gets Weekends Off
Joined APC: Nov 2005
Position: Guppy Capt.
Posts: 1,887
Originally Posted by Imapilot2
I got on here to see which Major it was.....then it said airtran....
04-22-2009, 05:03 AM
#5
A moment please...
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Joined APC: Sep 2007
Position: Just passin' thru
Posts: 769
Originally Posted by Imapilot2
I got on here to see which Major it was.....then it said airtran....
04-22-2009, 06:59 AM
#7
Gets Weekends Off
Joined APC: Jan 2008
Position: 767-400
Posts: 797
AirTran was on the verge of BK when oil went to $150/bl. They didn't have any cash (and still don't) to hedge fuel. This caused them to get lucky. They have been paying spot price for fuel with very little crack spread ($10/bl think lately). They did post a profit but it was mainly because of the lack of hedges and an unprecedented drop in the price of oil.
04-22-2009, 07:17 AM
#9
Che Guevara
Joined APC: Aug 2005
Posts: 6,408
Originally Posted by BigGuns
AirTran was on the verge of BK when oil went to $150/bl. They didn't have any cash (and still don't) to hedge fuel. This caused them to get lucky. They have been paying spot price for fuel with very little crack spread ($10/bl think lately). They did post a profit but it was mainly because of the lack of hedges and an unprecedented drop in the price of oil.
04-22-2009, 07:18 AM
#10
Gets Weekends Off
Joined APC: Nov 2008
Position: Non flying, pays better than any front seat, home every night, not missing the crashpad/
Posts: 133
Originally Posted by BigGuns
AirTran was on the verge of BK when oil went to $150/bl. They didn't have any cash (and still don't) to hedge fuel. This caused them to get lucky. They have been paying spot price for fuel with very little crack spread ($10/bl think lately). They did post a profit but it was mainly because of the lack of hedges and an unprecedented drop in the price of oil.
sometimes better to be lucky than good....
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