SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
June 10, 1998
(Date of earliest event reported)
AMTRAN, INC.
(Exact name of registrant as specified in its charter)
INDIANA 000-21642 35-1617970
(State or Other (Commission File (IRS Employer
Jurisdiction Number) Identification Number)
of Incorporation)
7337 West Washington Street, Indianapolis, Indiana
46231
(Zip Code)
(317) 247-4000
(Registrant's telephone number, including area code)
None
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
Attached as Exhibit 99(a) to this report is the Amtran, Inc. regular
monthly traffic press release. This release, dated June 10, 1998,
announces its May traffic.
Attached as Exhibit 99(b) to this report is a press release dated
June 17, 1998 discussing Amtran, Inc.'s anticipated second quarter
earnings.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Amtran, Inc.
(Registrant)
Date: June 18, 1998 By: Kenneth K. Wolff
(Signature)
Name: Kenneth K. Wolff
Title: Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit Description Page
99(a) Press Release dated June 10, 1998. 6
99(b) Press Release dated June 17, 1998. 9
<PAGE>
Exhibit 99(a)
ATA REPORTS 45% INCREASE IN MAY SCHEDULED SERVICE TRAFFIC
Overall Traffic Up 12.5%
INDIANAPOLIS, IN June 10, 1998 -- American Trans Air, Inc. (ATA), the principal
subsidiary of Amtran, Inc. (Nasdaq/NNM: "AMTR"), today reported its May 1998
traffic results.
System-wide for May 1998, compared with a year ago: revenue passenger miles
(RPMs) increased 12.5% to 791.2 million; available seat miles (ASMs) increased
12.4% to 1.1 billion; and total block hours flown increased 20.9% to 13,433
while flying the same number of aircraft as the prior year.
In scheduled service for May 1998, as compared with May 1997: RPMs increased
45.1% to 472.4 million; and ASMs increased 44.9% to 627.9 million; passenger
load factor equaled last year at 75.2%.
In charter service: ASMs decreased 20.4% to 455.2 million; and block hours flown
decreased 23.8% to 3,838 in May 1998 as compared with May 1997.
"The operating results for the month of May reflect the steady growth of our
scheduled service over the past several quarters," said Ken Wolff, Amtran's
Chief Financial Officer. "This growth continues with last month's addition of
Denver, Dallas and San Juan from Chicago-Midway. We are certainly pleased with
the early results in these markets as they are already drawing as many
passengers as our other popular routes from Chicago. Also, in May, we began
taking reservations for our new service, between Chicago-Midway and New York's
LaGuardia, which will begin flying July 7."
Wolff continued: "ATA's charter service is also doing well and we are no less
dedicated to that portion of our business; however, revenue has been constrained
by too few available aircraft to meet the market's demand. No additional
aircraft are expected to be available for our charter customers until at least
the end of 1998, when it is anticipated that we will take delivery of the first
of five L-1011-500s."
ATA, in its 25th year, operates a fleet of 45 aircraft, including Boeing 727s,
Boeing 757s and Lockheed L-1011s, which is supported by the Company's own
maintenance and engineering facilities in Indianapolis and Chicago-Midway and
maintenance support stations worldwide. Amtran's common stock trades on the
NASDAQ Stock Market under the symbol "AMTR."
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Amtran Reports May Traffic Page 2
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<CAPTION>
The following are the carrier's May and year-to-date traffic figures for 1998 and 1997:
System-wide May May
<S> <C> <C>
1998 1997 Change
---------------- ---------------- -------------
Total
Revenue passenger miles (000s) 791,152 703,458 12.5%
Available seat miles (000s) 1,134,690 1,009,704 12.4%
Revenue passengers carried 526,477 426,727 23.4%
Average passenger trip length (miles) 1,503 1,648 -8.8%
Block hours flown 13,433 11,111 20.9%
Charter Service
Revenue passenger miles (000s) 275,042 375,545 -26.8%
Available seat miles (000s) 455,239 571,985 -20.4%
Revenue passengers carried 143,903 199,285 -27.8%
Average passenger trip length (miles) 1,911 1,885 1.4%
Block hours flown 3,838 5,038 -23.8%
Scheduled Service
Revenue passenger miles (000s) 472,354 325,649 45.1%
Available seat miles (000s) 627,899 433,289 44.9%
Passenger load factor 75.2% 75.2% 0 pts
Revenue passengers carried 353,494 225,461 56.8%
Average passenger trip length (miles) 1,336 1,444 -7.5%
Block hours flown 9,021 6,003 50.3%
Sub-service
Block Hours
Block hours flown 574 70 720.0%
Year-to-date Year-to-date
1998 1997 Change
Total
Revenue passenger miles (000s) 4,053,658 3,656,656 10.9%
Available seat miles (000s) 5,692,382 5,035,898 13.0%
Revenue passengers carried 2,649,130 2,305,401 14.9%
Average passenger trip length (miles) 1,530 1,586 -3.5%
Block hours flown 66,259 53,549 23.7%
Charter Service
Revenue passenger miles (000s) 1,708,190 2,036,990 -16.1%
Available seat miles (000s) 2,568,315 2,896,164 -11.3%
Revenue passengers carried 899,623 1,139,686 -21.1%
Average passenger trip length (miles) 1,899 1,787 6.3%
Block hours flown 22,248 26,248 -15.2%
Scheduled Service
Revenue passenger miles (000s) 2,238,738 1,613,286 38.8%
Available seat miles (000s) 2,952,671 2,126,606 38.8%
Passenger load factor 75.8% 75.9% -0.1 pts
Revenue passengers carried 1,682,127 1,160,832 44.9%
Average passenger trip length (miles) 1,331 1,390 -4.2%
Block hours flown 42,167 27,099 55.6%
Sub-service
Block hours flown 1,844 202 812.9%
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Amtran Reports May Traffic Page 3
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ATA Connection (Contract Commuter) May May
<S> <C> <C>
Scheduled Service 1998 1997 Change
----------------- ---------------- --------------
Revenue passenger miles (000s) 2,782 1,943 43.2%
Available seat miles (000s) 4,379 3,304 32.5%
Passenger load factor 63.5% 58.8% 4.7 pts
Revenue passengers carried 15,884 10,011 58.7%
Average passenger trip length (miles) 175 194 -9.8%
Block hours flown 1,310 1,033 26.8%
Year-to-date Year-to-date
1998 1997 Change
----------------- ---------------- --------------
Revenue passenger miles (000s) 11,408 4,027 183.3%
Available seat miles (000s) 20,743 6,571 215.7%
Passenger load factor 55.0% 61.3% -6.3 pts
Revenue passengers carried 64,372 20,911 207.8%
Average passenger trip length (miles) 177 193 -8.3%
Block hours flown 6,185 2,050 201.7%
ATA Jet Operations May May
Total 1998 1997 Change
----------------- ---------------- --------------
Revenue passenger miles (000s) 788,370 701,515 12.4%
Available seat miles (000s) 1,130,311 1,006,400 12.3%
Revenue passengers carried 510,593 416,716 22.5%
Average passenger trip length (miles) 1,544 1,683 -8.3%
Block hours flown 12,123 10,078 20.3%
Charter Service
Revenue passenger miles (000s) 275,042 375,545 -26.8%
Available seat miles (000s) 455,239 571,985 -20.4%
Revenue passengers carried 143,903 199,285 -27.8%
Average passenger trip length (miles) 1,911 1,885 1.4%
Block hours flown 3,838 5,038 -23.8%
Scheduled Service
Revenue passenger miles (000s) 469,572 323,706 45.1%
Available seat miles (000s) 623,520 429,985 45.0%
Passenger load factor 75.3% 75.3% 0 pts
Revenue passengers carried 337,610 215,450 56.7%
Average passenger trip length (miles) 1,391 1,503 -7.5%
Block hours flown 7,711 4,970 55.2%
Year-to-date Year-to-date
1998 1997 Change
Total
Revenue passenger miles (000s) 4,042,250 3,652,629 10.7%
Available seat miles (000s) 5,671,639 5,029,327 12.8%
Revenue passengers carried 2,584,758 2,284,490 13.1%
Average passenger trip length (miles) 1,564 1,599 -2.2%
Block hours flown 60,073 51,499 16.6%
Charter Service
Revenue passenger miles (000s) 1,708,190 2,036,990 -16.1%
Available seat miles (000s) 2,568,315 2,896,164 -11.3%
Revenue passengers carried 899,623 1,139,686 -21.1%
Average passenger trip length (miles) 1,899 1,787 6.3%
Block hours flown 22,248 26,248 -15.2%
Scheduled Service
Revenue passenger miles (000s) 2,227,330 1,609,259 38.4%
Available seat miles (000s) 2,931,928 2,120,035 38.3%
Passenger load factor 76.0% 75.9% 0.1 pts
Revenue passengers carried 1,617,755 1,139,921 41.9%
Average passenger trip length (miles) 1,377 1,412 -2.5%
Block hours flown 35,981 25,049 43.6%
</TABLE>
<PAGE>
Exhibit 99(b)
AMTRAN EXPECTS STRONG SECOND QUARTER EARNINGS
INDIANAPOLIS, IN June 17, 1998 - Amtran, Inc. (Nasdaq/NNM: "AMTR"), parent
company of American Trans Air, Inc. (ATA), today announced that it currently
expects significant year-over-year improvement in its results for the second
quarter ending June 30, 1998.
"Traditionally, ATA`s first and third quarter financial performance has been
substantially better than its second quarter results," commented John Tague,
Amtran's President and Chief Executive Officer. "We have worked diligently to
improve this seasonal reduction by adjusting our business mix and improving our
aircraft utilization, especially in our higher yielding markets. The effect of
these changes, when combined with the airline industry's currently strong
fundamentals, are expected to produce second quarter earnings for 1998 that will
be similar to our record first quarter results."
The Company noted that net income for the first quarter of 1998 was $12.4
million or $1.02 per share. In the second quarter of 1997, Amtran lost $749,000
dollars or $.06 per share. It's previous best second quarter net income was $3.3
million or $.29 per share in 1995.
ATA, in its 25th year, operates a fleet of 45 aircraft, including Boeing 727s,
Boeing 757s and Lockheed L-1011s, which is supported by the Company's own
maintenance and engineering facilities in Indianapolis and Chicago-Midway and
maintenance support stations worldwide. Amtran's common stock trades on the
NASDAQ Stock Market under the symbol "AMTR."
This press release contains forward-looking statements that incorporate
assumptions which entail uncertainties and unknown risks. Important factors that
could cause actual results to differ materially from those indicated by such
forward-looking statements are set forth under the caption "Forward-Looking
Statements" in the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 1997. These factors include, among others, the following:
general economic factors affecting the industry and the Company; competition
within the industry; changes in consumer preferences; fuel prices; regulatory
changes; and economic conditions in key markets.
