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| AirTran Holdings, Inc., Reports Net Income of $10.4 Million in Third Quarter |
The operating income for the third quarter of 2009 was The Company has been profitable in each quarter of 2009, and has posted year-to-date records in operating income of Included in net income for the third quarter were "Our 8,500 dedicated Crew Members are committed to running the finest airline in the U.S., and their outstanding efforts have resulted in During the third quarter, "The year-over-year improvement in our financial performance is directly related to maintaining our industry-leading low cost structure while providing 'best-in-class' service and outstanding value to our business and leisure passengers," said Other highlights of
--
-- Expanded
-- Bolstered liquidity by extending and enhancing a
-- Announced multi-year marketing partnerships with the Atlanta Falcons
(and launched special livery aircraft, Falcons One) and the
Editor's note: Statements regarding the Company's operational and financial success, business model, expectation about future success, improved operational performance and our ability to maintain or improve our low costs are forward-looking statements 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, regulatory 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
Media Contacts:
Reconciliation of GAAP Financial Information to Non-GAAP Financial Information Three and Nine Months Ended We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). Within our press release, we make reference to certain non-GAAP financial measures including net margin. Our disclosures may also exclude special or non-recurring items that we believe should be taken into consideration to more accurately measure and monitor our operating performance. Our disclosure of non-fuel operating cost per available seat mile (non-fuel CASM) is consistent with financial measures reported by other airlines and analysts. We believe that non-fuel CASM and non-fuel CASM adjusted provide a useful understanding of our operations. Both the cost and availability of fuel are subject to many economic and political factors and are therefore beyond our control. Our press release also contains information regarding the components of GAAP fuel expense and net gains and losses on derivative financial instruments. These amounts have been included as supplemental information. We disclose both the average fuel cost per gallon and the average economic fuel cost per gallon. Average fuel cost per gallon is based on fuel expense as measured by GAAP and includes realized gains and losses on fuel related derivatives instruments which are accounted for as hedges. Average economic fuel cost per gallon includes realized gains and losses on all fuel related derivative instruments, including those which were not accounted for as hedges, but does not include unrealized gains and losses recognized under GAAP. We consider our fuel derivative contracts an important tool in managing costs related to jet fuel purchases. We believe it is important to assess our financial performances by including the effect of the net cash settlements and excluding the mark-to-market adjustments for our unrealized gains and losses recorded in the income statement for contracts settling in future periods. We believe that these measures represent important internal measures of performance. Accordingly, where these non-GAAP measures are provided, it is done so that investors have the same financial data that management uses in evaluating performance with the belief that it will assist the investment community in assessing our underlying performance on a year-over-year and a quarter-over-quarter basis. However, because these measures are not determined in accordance with accounting principles generally accepted in
Dollars in thousands,
unless otherwise
noted Three months ended Nine months ended
September 30, September 30,
----------------- ------------------
2009 2008 2009 2008
---- ---- ---- ----
The following table
calculates net
margin, adjusted:
Net income
(loss) $10,426 $(94,553) $117,571 $(144,740)
(Gain) loss on debt
extinguishment,
net of taxes 251 - (3,333) -
Unrealized
(gains) losses
on derivative
financial
Instruments,
net of taxes 6,260 55,547 (27,663) 26,541
Gain on
asset
dispositions,
net of taxes (6,379) (9,254) (3,073) (15,797)
Impairment
of goodwill - - - 8,350
--- --- --- -----
Net income
(loss), adjusted $10,558 $(48,260) $83,502 $(125,646)
======= ======== ======= =========
Total operating
revenues $597,402 $673,292 $1,743,010 $1,963,063
-------- -------- --------- ----------
Net margin,
adjusted 1.8% (7.2)% 4.8% (6.4)%
=== ==== === ====
The following table
calculates
operating cost
per ASM, adjusted:
Total operating
expenses $560,369 $720,705 $1,592,104 $2,092,303
Gain on asset
dispositions 6,379 9,254 3,073 15,797
Impairment of
goodwill - - - (8,350)
--- --- --- ------
Operating
expenses,
adjusted $566,748 $729,959 $1,595,177 $2,099,750
======== ======== ========== ==========
ASMs (000) 6,170,977 6,221,858 17,498,261 18,450,013
--------- --------- ---------- ----------
Operating
cost per ASM
(cents),
adjusted 9.18 11.73 9.12 11.38
==== ===== ==== =====
The following table
calculates non-fuel
operating cost
per ASM and non-fuel
operating cost
per ASM, adjusted:
Total operating
expenses $560,369 $720,705 $1,592,104 $2,092,303
Aircraft fuel (190,235) (363,882) (483,008) (1,000,451)
-------- -------- -------- ----------
Operating
expenses,
adjusted $370,134 $356,823 $1,109,096 $1,091,852
======== ======== ========== ==========
ASMs (000) 6,170,977 6,221,858 17,498,261 18,450,013
--------- --------- ---------- ----------
Non-fuel
operating cost
per ASM (cents) 6.00 5.73 6.34 5.92
==== ==== ==== ====
Total operating
expenses $560,369 $720,705 $1,592,104 $2,092,303
Aircraft fuel (190,235) (363,882) (483,008) (1,000,451)
Gain on asset
dispositions 6,379 9,254 3,073 15,797
Impairment
of goodwill - - - (8,350)
--- --- --- ------
Non-fuel operating
cost, adjusted $376,513 $366,077 $1,112,169 $1,099,299
======== ======== ========== ==========
ASMs (000) 6,170,977 6,221,858 17,498,261 18,450,013
--------- --------- ---------- ----------
Non-fuel
operating
cost per ASM
(cents),
adjusted 6.10 5.88 6.36 5.96
==== ==== ==== ====
The following table
calculates average
economic cost of
aircraft fuel per
gallon:
Aircraft fuel
expense per
GAAP $190,235 $363,882 $483,008 $1,000,451
Realized (gains)
losses on derivatives
that do not qualify
for hedge accounting,
recorded in net (gains)
losses on derivative
financial instruments 4,021 (14,027) 9,719 (23,391)
----- ------- ----- ------
Economic fuel
expense $194,256 $349,855 $492,727 $977,060
======== ======== ======== ========
Gallons of fuel
burned (000s) 96,098 95,303 272,264 283,169
------ ------ ------- -------
Economic cost
of aircraft
fuel per gallon $2.02 $3.67 $1.81 $3.45
===== ===== ===== =====
The following
table calculates
diluted earnings
per share, adjusted
for the three months
ended September 30,
2009 and 2008:
Net income $10,426 (94,553)
Gain on debt
extinguishment,
net of taxes 251 --
Unrealized losses
on derivative
financial
instruments,
net of taxes 6,260 55,547
Gain on asset
dispositions,
net of taxes (6,379) (9,254)
------ ------
Net income,
adjusted $10,558 (48,260)
Plus income
effect of
assumed
conversion-interest
on convertible debt 956 --
--- ---
Income after
assumed conversion,
diluted $11,514 (48,260)
Adjusted weighted-
average shares
outstanding,
diluted 140,625 117,177
Diluted earnings
per share (dollars),
adjusted $0.08 $(0.41)
===== ======
COMPANY ESTIMATES/FORWARD LOOKING STATEMENTS
The following table contains our year-over-year capacity projection for
the remainder of 2009:
Period Forecasted ASMs
------- ---------------
Q4 2009 Up approximately 7%
The following table contains our year-over-year projections for Q4 2009
total unit revenues, non-fuel operating unit costs, and average cost per
gallon of fuel, all in:
Q4 Projection
---------------------
Total unit revenue per ASM Down 7% to 8%
Non-fuel unit operating cost per
ASM in Q4 Up 1% to 2%
Average cost per gallon of fuel,
all-in $2.08 to $2.12
As of
SOURCE Christopher White (Media), +1-678-254-7442; or Jason Bewley (Investor Relations), +1-407-318-5188, both of AirTran Airways |
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