This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

AirTran Cuts Capacity Plans, Has Loss

In the most dramatic move so far to reduce airline growth, fast-expanding AirTran (AAI) says it will entirely halt its planned capacity increases in September and keep its capacity level in 2009.

AirTran had been planning to increase capacity by 10% next year, but now says growth will be no more than flat. "Advanced bookings for the summer look very strong, however, we are nonetheless concerned with the continued rise in fuel prices, particularly towards the end of this year," said Senior Vice President Kevin Healy, in a prepared statement.

"Our plan is to remain ahead of the curve and control our own destiny," he said.

The announcement came as the low-cost carrier reported a $34.8 million loss in the first quarter, driven by rising fuel costs. The loss equated to 38 cents a share. Analysts surveyed by Thomson Financial had expected a loss of 31 cents.

Revenue rose 18.3% to a record $596 million, but analysts had estimated $600 million. In the same quarter a year earlier, AirTran had net income of $2.2 million, or 2 cents a share.

AirTran said revenue per available seat mile rose 6.9% during the quarter, while traffic was up 19.2% on a 10.8% capacity increase. Load factor rose 5.2 points to 75.3%, a first-quarter record. Fuel costs increase by $102 million from a year earlier to $268 million.

This is the second busy week for quarterly results from the airline sector. Also Tuesday, JetBlue (JBLU) had a narrower-than-expected loss, while UAL (UAUA), the owner of United fell short of Wall Street's bottom-line expectations.

Later this week, Delta (DAL) and Northwest (NWA), who plan to merge, will post their numbers. Continental (CAL), Southwest (LUV) and AMR (AMR), the parent of American Airlines, reported last week.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs