Kohflot
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AirTran Q3 Earnings Conference Call 10/27

Wed Oct 27, 2004 11:23 am

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.
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Kohflot
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RE: AirTran Q3 Earnings Conference Call 10/27

Wed Oct 27, 2004 10:57 pm

This starts in less than 5 minutes....
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airtran737
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RE: AirTran Q3 Earnings Conference Call 10/27

Wed Oct 27, 2004 11:01 pm

we lost 9.8 million for the quarter
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
 
Kohflot
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RE: AirTran Q3 Earnings Conference Call 10/27

Wed Oct 27, 2004 11:04 pm

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.
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Kohflot
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RE: AirTran Q3 Earnings Conference Call 10/27

Wed Oct 27, 2004 11:22 pm

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......?
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Kohflot
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 12:14 am

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".
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7e72004
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 12:19 am

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!
 
ATLhomeCMH
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 12:24 am

*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
 
quickmover
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 12:54 am

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.
 
rumorboy
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 1:01 am

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.
 
Kohflot
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 1:46 am

Rumorboy is correct. Sorry that wasn't more clear..
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travatl
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 2:12 am

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
 
rumorboy
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 2:28 am

Actually Travis is right.I went back and listened to it again.
 
Kohflot
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RE: AirTran Q3 Earnings Conference Call 10/27

Thu Oct 28, 2004 2:41 am

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