AirTran Airways' loses $3.3M in 4th quarter

FA Mikey

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Aug 19, 2002
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AirTran Holdings Inc., which operates low-fare air carrier AirTran Airways and is bidding for the parent of Midwest Airlines, said today it lost $3.3 million in the fourth quarter.

A profitable performance in the last two months of 2006 failed to offset losses in October, said Bob Fornaro, company president and chief operating officer of the Orlando-based carrier.

Overall loss for AirTran amounted to 4 cents per share in the quarter, versus a profit of $369,000, or break-even on a per share basis, during the same period last year.

"The year 2006 was very challenging with our average fuel prices again rising over 20 percent for the third year in a row," said Joe Leonard, AirTran's chairman and chief executive officer, in a statement.

For the year, net income nearly doubled to $15.5 million, or 17 cents per share, from $8.1 million, or 9 cents per share in 2005. Revenue grew 31 percent to $1.89 billion, from $1.45 billion last year.

AirTran's 2006 earnings capped the company's eighth consecutive profitable year.

AirTran has offered $345 million in cash and stock for Midwest Air Group Inc., the parent of Midwest Airlines. The Milwaukee-based Midwest Air's board has recommended shareholders reject the offer, calling it inadequate.

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