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AirTran Q3 Earnings Conference Call 10/27  
User currently offlineKohflot From , joined Dec 1969, posts, RR:
Posted (9 years 10 months 1 week 1 day 5 hours ago) and read 2052 times:

For those interested, here's the address:

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=AAI&script=1010&item_id=953755

It starts at 10AM EDT and it looks like a quick registration is required.

Obviously, the ATA news is going to be at the forefront, but other issues will be very interesting and pertinent as well.. fuel costs, the effect of the hurricanes, negotiations with the flight attendants, possible changes to the delivery schedule, etc.

The street is estimating a loss of 7 cents per share for the quarter.


13 replies: All unread, jump to last
 
User currently offlineKohflot From , joined Dec 1969, posts, RR:
Reply 1, posted (9 years 10 months 1 week 17 hours ago) and read 1979 times:

This starts in less than 5 minutes....

User currently offlineAirtran737 From United States of America, joined Apr 2004, 3704 posts, RR: 12
Reply 2, posted (9 years 10 months 1 week 17 hours ago) and read 1975 times:
Support Airliners.net - become a First Class Member!

we lost 9.8 million for the quarter


Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
User currently offlineKohflot From , joined Dec 1969, posts, RR:
Reply 3, posted (9 years 10 months 1 week 17 hours ago) and read 1966 times:

It does appear that the street sees the ATA deal as favorable. The loss for the quarter was 11 cents per share, which is substantially worse than the 7 cents that was expected. Though I think the bad news was already priced in the stock to some extent, I don't think we'd see the stock up 5% without the 'good' ATA news.

User currently offlineKohflot From , joined Dec 1969, posts, RR:
Reply 4, posted (9 years 10 months 1 week 17 hours ago) and read 1954 times:

I didn't see this in the press release, but the gent at AirTran just mentioned that a part of the ATA deal includes the right to build a facility at MDW with up to 10 RJ gates......?

User currently offlineKohflot From , joined Dec 1969, posts, RR:
Reply 5, posted (9 years 10 months 1 week 16 hours ago) and read 1916 times:

Some points/highlights from the conference call:

* Took delivery of 3 737s and 1 717 in the third quarter.

* Hurricanes cost $8 million in cancellations alone.

* The 717s are out-of-warranty now. There is a power-by-the-hour deal in place for the engines, though.

* Incoming 737s are obviously under warranty as they arrive.

* Cash balance of $347 million at the end of the third quarter.

* Fourth quarter deliveries include 2 717s and 3 737s.

* The contract with Ryan Intl. ends in November.

* They've been advised that there would be no problem raising the money for the ATA deal "from several markets" rather than using their own cash, if they so choose.

* As I indicated earlier, a surprising part of the ATA deal includes the right to build a 10-gate RJ facility at MDW. When asked about this, management indicated that they just want the flexibility to have RJs if they deem them useful.

* Wet-lease with ATA will include "15-27" 737-800s. They'll gradually be replaced with FL 700s. The wet-lease will be in place for 6 months to 1 year, though they hope it doesn't last a full year.

* A goal by the end of 2005 is to have ATL capacity down to 55%.

* They're expecting "rationalization" and "restructuring" of capacity (all airlines) on the East Coast.

* Specific mention was made about Southwest, US Airways, and Independence Air.

* They believe that a move into MDW will actually help Southwest. Using smaller aircraft will likely improve everyone's yields at MDW.

* Competition from Independence Air has cost AirTran approximately $5 million in the last quarter. Operating the RJ with their low fares is "one of the silliest things I've seen", according to Bob Fornaro (it sounded like him, if someone knows it was someone else, feel free to correct me).

* As for DFW - "A big push into Dallas is not in the cards." Dallas "goes on the back burner" because MDW is "easier and better".


User currently offline7E72004 From United States of America, joined Mar 2004, 3587 posts, RR: 2
Reply 6, posted (9 years 10 months 1 week 16 hours ago) and read 1907 times:

Question: Where the hell are they going to build a regional jet facility at MDW???


The next generation of aircraft is just around the corner!
User currently offlineATLhomeCMH From United States of America, joined Dec 2003, 770 posts, RR: 3
Reply 7, posted (9 years 10 months 1 week 16 hours ago) and read 1902 times:

*A goal by the end of 2005 is to have ATL capacity down to 55%.

What does this mean exactly? That they're planning on spread-loading routes--traffic--a/c among other cities, such as BWI or MDW?

*Competition from Independence Air has cost AirTran approximately $5 million in the last quarter.

I wouldn't be too worried about that. Indy will be lucky to survive 2005.



"The most terrifying words in the Engligh language are, 'I'm from the government and I'm here to help.'"-Ronald Reagan
User currently offlineQuickmover From United States of America, joined Mar 2004, 2494 posts, RR: 0
Reply 8, posted (9 years 10 months 1 week 15 hours ago) and read 1882 times:

Is FL operating at 100% capacity at ATL right now, which would mean a 45% cut of ATL flights or something less? Cutting frequency too far certainly won't help keep business travelers.

User currently offlineRumorboy From United States of America, joined Aug 2002, 356 posts, RR: 1
Reply 9, posted (9 years 10 months 1 week 15 hours ago) and read 1863 times:

I think Bob Fornaro was saying that as a percentage of revenue ATL will only account for about 55% of there total revenue. This is a good thing because it helps them deversify from ATL. I think right now ATL is about 65-70% of revenue.

User currently offlineKohflot From , joined Dec 1969, posts, RR:
Reply 10, posted (9 years 10 months 1 week 15 hours ago) and read 1789 times:

Rumorboy is correct. Sorry that wasn't more clear..

User currently offlineTravatl From United States of America, joined Mar 2001, 2173 posts, RR: 7
Reply 11, posted (9 years 10 months 1 week 14 hours ago) and read 1743 times:

The % number actually means seats (capacity), not revenue (traffic). It's just simply a continued diversification of the route map. As capacity is increased, but placed elsewhere, obviously, the percentage of capacity of the route structure that goes thru ATL will decrease.

Travis


User currently offlineRumorboy From United States of America, joined Aug 2002, 356 posts, RR: 1
Reply 12, posted (9 years 10 months 1 week 14 hours ago) and read 1712 times:

Actually Travis is right.I went back and listened to it again.

User currently offlineKohflot From , joined Dec 1969, posts, RR:
Reply 13, posted (9 years 10 months 1 week 14 hours ago) and read 1686 times:

Oi.. I probably should have read a little closer before I posted!

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