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Exhibit 99.1
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Press Release
AirTran Holdings - AAI - Reports All-Time Record
Quarterly Revenues
Seventh Consecutive Quarter Of Profitability
ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 16, 2000--AirTran Holdings, Inc.,
(AMEX:AAI - news), the parent company of AirTran Airways, today reported net
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income for the quarter ending September 30, 2000, of $8.9 million, or $.13 per
diluted share, representing the seventh consecutive quarter of profitability.
These results represent a 127% increase over third quarter 1999 net income of
$3.9 million, excluding a non-recurring gain in the year-earlier period. Third
quarter 2000 revenue was $161.5 million, an all-time record for the Company, and
a 30.4% increase over third quarter 1999 revenue of $123.8 million.
Operating income for the third quarter of 2000 was $17.1 million compared
to operating income of $9.9 million in the third quarter of 1999 excluding the
non-recurring item. The third quarter 2000 results represented a 10.6% operating
margin which was 2.6 points greater than the year-earlier third quarter margin
of 8.0%.
Net income for the nine months of 2000 was $34.4 million or $.50 per
diluted share compared to $21.9 million or $.32 per diluted share for the year-
earlier period excluding the non-recurring item. Operating income for the nine
months of 2000 was $60.6 million compared to $40.4 million for the same period
in 1999, excluding the non-recurring item.
"The employee-crew members of AirTran Airways achieved a seventh
consecutive profitable quarter for our company despite a difficult operating
environment brought on in part by significant air traffic control problems and
record high load factors," said Joe Leonard, AirTran Airways' chairman and chief
executive officer. "In an era when crude oil prices have exceeded $35 per barrel
and jet fuel costs are rising at unprecedented rates, it is especially
gratifying to report significantly improved financial results. AirTran Airways
is now well positioned to take advantage of the accelerating growth that we will
experience with the upcoming delivery of approximately three dozen new Boeing
717 aircraft over the next three years."
During the third quarter 2000, AirTran Airways' traffic, or revenue
passenger miles (RPMs), grew 28.3% on an 11.9% increase in capacity, or
available seat miles (ASMs). Load factor increased by 9.4 points to 73.4%.
AirTran Airways' yield (average fare per mile) grew by 2.1% to 14.12 cents.
AirTran Airways carried 2,029,035 passengers in the third quarter of 2000, which
is 27.0% more than in the same period last year and a company record.
"AirTran Airways experienced third quarter traffic growth that was nearly
two and a half times our 11.9% increase in capacity," said Robert Fornaro,
AirTran Airways' president. "Both existing and new AirTran Airways routes show
that our brand awareness and popularity are gaining as we continue to expand our
presence throughout the Eastern United States."
"In addition to producing record third quarter revenue, we were able to
hold the line on non-fuel related unit costs, which were up less than 1%," said
Stan Gadek, AirTran Airways'
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senior vice president and chief financial officer. "We will continue to focus on
reducing our costs in order to provide value to AirTran Airways' customers,
shareholders and employee-crew members."
AirTran Airways ended the third quarter with $112.5 million in total cash,
and EBITDAR margin improved to 16.7%.
Highlights of the airline's recent accomplishments include:
. Obtained more than 600,000 subscriber enrollments in the web-based
AirTran Net-Escapes email travel program in the first 19 months of
operation
. Announced the launch of new service to Toledo, Ohio's, Toledo Express
Airport, which commenced October 3, 2000
. Entered into additional fuel hedging agreements that, when combined
with current agreements, will minimize the company's crude oil
exposure on 35% of current needs at a price no higher than $28 per
barrel for fourth quarter of 2000 and first quarter 2001
. Reached a tentative agreement with the International Brotherhood of
Teamsters representing 350 mechanics and inspectors, in advance of the
contract's amendable date. The agreement was subsequently ratified on
October 6, 2000
. Named "Airline of the Year" by the Southeast Chapter of the American
Society of Travel Agents for the second consecutive year
. Signed Interline Agreements with five major U.S. airlines
. Announced the startup of new service to Grand Bahama Island commencing
December 12, 2000
. Took delivery of two additional Boeing 717 aircraft in the third
quarter, bringing the total to 13.
Systemwide, AirTran Airways operates 294 daily departures to 32 cities.
Offering the convenience of easy, same concourse connections in Atlanta, AirTran
Airways operates 135 daily departures from Hartsfield Atlanta International
Airport, the world's busiest airport.
AirTran Airways provides everyday, affordable air travel throughout the eastern
United States, and unlike other airlines, never requires a roundtrip purchase or
Saturday night stay. AirTran Airways is the launch customer for the Boeing 717,
today's newest, most innovative commercial aircraft. AirTran Airways is a
subsidiary of AirTran Holdings, Inc. (AMEX:AAI - news).
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For more information and reservations, visit AirTran Airways' Web site at
www.airtran.com, call your travel agent or call AirTran Airways at 800-AIRTRAN
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(800-247-8726) or 770-994-8258 (in Atlanta).
Editor's note: Statements regarding the Company's growth in market segments,
revenue, earnings, load factors, yields, Internet bookings as well as statements
about the Company's financial and operational foundation, future profitability
and their impact on 2000 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 SEC filings, including but not
limited to the Company's annual report on Form 10-K
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for the year ended December 31, 1999. The Company disclaims any obligation or
duty to update or correct any of its forward-looking statements.
AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended
September 30, Variance
2000 1999(a) Percentage
---- ------- ----------
<S> <C> <C> <C>
Operating revenues:
Passenger $ 156,807 $ 119,676 31.0%
Cargo 904 933 (3.1%)
Other 3,748 3,234 15.9%
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Total operating
revenues 161,459 123,843 30.4%
Operating expenses:
Salaries, wages and
benefits 35,423 30,358 16.7%
Aircraft fuel 37,189 18,888 96.9%
Maintenance, materials and
repairs 20,959 20,114 4.2%
Commissions 10,009 9,191 8.9%
Landing fees and other
rents 6,661 6,531 2.0%
Marketing and
advertising 4,396 3,113 41.2%
Aircraft rent 4,007 1,262 217.5%
Depreciation 5,906 8,790 (32.8%)
Other operating 19,806 15,666 26.4%
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Total operating
expenses 144,356 113,913 26.7%
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Operating income 17,103 9,930 72.2%
Interest (income) expense
Interest income (1,654) (763) 116.8%
Interest expense 9,518 6,218 53.1%
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Interest expense, net 7,864 5,455 44.2%
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Income before income taxes 9,239 4,475 106.5%
Income tax expense 348 555 (37.3%)
Net income
Excluding non-recurring
item $ 8,891 $ 3,920 126.8%
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Including non-recurring
item $ 8,891 $ 23,167 (61.6%)
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</TABLE>
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<TABLE>
<S> <C> <C> <C>
Basic earnings per share
Excluding non-recurring
item $ 0.14 $ 0.06 133.3%
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Including non-recurring
item $ 0.14 $ 0.36 (61.1%)
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Diluted earnings per share
Excluding non-recurring
item $ 0.13 $ 0.06 116.7%
========== ========== =====
Including non-recurring
item $ 0.13 $ 0.34 (61.8%)
========== ========== =====
Basic shares outstanding 65,757 65,123 1.0%
Diluted shares outstanding 69,047 69,139 (0.1)%
Third Quarter Statistical Summary:
Revenue passengers 2,029,035 1,598,238 27.0%
Revenue passenger miles
(000's) 1,110,576 865,395 28.3%
Available seat miles
(000's) 1,512,847 1,351,894 11.9%
EBITDAR 27,016 19,982 35.2%
Operating margin 10.6% 8.0% 2.6 pts.
Net margin 5.5% 3.2% 2.3 pts.
Block hours 44,469 37,567 18.4%
Passenger load factor 73.4% 64.0% 9.4 pts.
Break-even load factor 69.1% 61.6% 7.5 pts.
Average fare $ 77.28 $ 74.88 3.2%
Average yield per RPM 14.12 (cents) 13.83 (cents) 2.1%
Passenger revenue per ASM 10.37 (cents) 8.85 (cents) 17.2%
Operating cost per ASM 9.54 (cents) 8.43 (cents) 13.2%
Non-fuel operating cost
per ASM 7.08 (cents) 7.03 (cents) 0.7%
Average cost of aircraft
fuel per gallon 103.40 (cents) 54.92 (cents) 88.3%
Number of aircraft in
fleet at end of period 52 48 8.3%
</TABLE>
(a) Excludes non-recurring gain from settlement of litigation in Q3 1999.
<TABLE>
<CAPTION>
For the nine months ended
September 30, Variance
2000 1999 (a) Percentage
<S> <C> <C> <C>
Operating revenues:
Passenger $ 441,556 $ 370,636 19.1%
Cargo 2,977 2,899 2.7%
Other 10,103 10,196 (0.9%)
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Total operating
revenues 454,636 383,731 18.5%
Operating expenses:
Salaries, wages and
benefits 101,690 87,408 16.3%
Aircraft fuel 96,361 50,237 91.8%
</TABLE>
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<TABLE>
<S> <C> <C> <C>
Maintenance, materials
and repairs 55,504 69,278 (19.9%)
Commissions 29,400 28,595 2.8%
Landing fees and other
rents 20,400 19,542 4.4%
Marketing and advertising 13,440 13,120 2.4%
Aircraft rent 9,000 3,908 130.3%
Depreciation 16,129 24,433 (34.0%)
Other operating 52,148 46,824 11.4%
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Total operating
expenses 394,072 343,345 14.8%
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Operating income 60,564 40,386 50.0%
Interest (income) expense
Interest income (3,908) (1,688) 131.5%
Interest expense 28,618 18,120 57.9%
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Interest expense, net 24,710 16,432 50.4%
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Income before income taxes 35,854 23,954 49.7%
Income tax expense 1,473 2,022 (27.2%)
Net income
Excluding non-recurring
item $ 34,381 $ 21,932 56.8%
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Including non-recurring
item $ 34,381 $ 41,180 (16.5%)
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Basic earnings per share
Excluding non-recurring
item $ 0.52 $ 0.34 52.9%
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Including non-recurring
item $ 0.52 $ 0.63 (17.5%)
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Diluted earnings per share
Excluding non-recurring
item $ 0.50 $ 0.32 56.3%
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Including non-recurring
item $ 0.50 $ 0.60 (16.7%)
========== ========== =====
Basic shares outstanding 65,735 64,998 1.1%
Diluted shares outstanding 69,009 68,477 0.8%
Nine Month Statistical Summary:
Revenue passengers 5,583,128 4,861,099 14.9%
Revenue passenger miles
(000's) 3,032,962 2,618,101 15.8%
Available seat miles
(000's) 4,316,504 4,086,444 5.6%
EBITDAR 85,693 68,727 24.7%
Operating margin 13.3% 10.5% 2.8 pts.
Net margin 7.6% 5.7% 1.8 pts.
Block hours 126,397 112,147 12.7%
Passenger load factor 70.3% 64.1% 6.2 pts.
Break-even load factor 64.6% 59.9% 4.7 pts.
Average fare $ 79.09 $ 76.25 3.7%
</TABLE>
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<TABLE>
<S> <C> <C>
Average yield per RPM 14.56 (cents) 14.16 (cents) 2.8%
Passenger revenue per ASM 10.23 (cents) 9.07 (cents) 12.8%
Operating cost per ASM 9.13 (cents) 8.40 (cents) 8.7%
Non-fuel operating cost
per ASM 6.90 (cents) 7.17 (cents) (3.8)%
Average cost of aircraft
fuel per gallon 93.27 (cents) 48.97 (cents) 90.5%
Number of aircraft in fleet
at end of period 52 48 8.3%
</TABLE>
(a) Excludes non-recurring gain from settlement of litigation in Q3 1999.
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Contact:
AirTran Airways, Orlando
Jim Brown, 407/251-5578 (Media)
Arne Haak, 407/251-3618 (Financial)
News-On-Demand: 888/329-0923
