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reported record second-quarter revenue and profits, but missed analyst estimates.

Excluding items, the carrier reported net income of $38.8 million, or 23 cents a share. Analysts surveyed by Thomson Reuters had estimated 25 cents a share.

Including $26.4 million in unrealized losses related to the reduced value of future fuel hedges, net income was $12.4 million, or 9 cents a share. That represented a decline of $66.1 million from the same quarter a year earlier, primarily because net losses on fuel hedges in 2010 were compared to a net gain on fuel hedges in 2009.

Revenue rose 16% to $700.6 million, in line with estimates.

AirTran said passenger revenue per available seat mile rose 12.6% as second-quarter load factor topped 83% for the first time in the carrier's history. On the cost side, adjusted cost per available seat mile excluding fuel rose 2.5% to 6.45 cents.

During the current quarter, AirTran said its capacity will increase about 1% while PRASM will increase between 14.5% and 16.5%, and cost per available seat mile excluding fuel will increase 4% to 5%.

-- Written by Ted Reed in Charlotte, N.C.


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