Attached files
| file | filename |
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| 8-K - AIRTRAN FORM 8-K FOR PRESS RELEASE 01.27.10 - AIRTRAN HOLDINGS INC | form8-k.htm |
EXHIBIT
99.1
|
FOR IMMEDIATE RELEASE
|
Media Contacts:
|
AirTran
Airways:
|
||||||
|
January
27, 2010
|
Christopher
White (Media)
|
|||||||
|
678.254.7442
|
||||||||
|
|
||||||||
|
Jason
Bewley (Investor Relations)
|
||||||||
| 407.318.5188 |
AirTran
Holdings, Inc. Reports Record Net Income of $134.7 Million for
2009
-
Low Cost Carrier Profitable all Four Quarters of 2009 –
-
Record Load Factor and Income for 2009 -
ORLANDO,
Fla., (January 27, 2010) -- AirTran Holdings, Inc., (NYSE: AAI), the parent
company of AirTran Airways, Inc., today reported net income of $134.7 million or
$0.95 per diluted share for the full-year 2009 and net income of $17.1 million
or $0.11 per diluted share for the fourth quarter of 2009. These results
represent an all-time record for annual net income with an improvement of over
$400 million as compared to last year. Operating income was $177.0 million
and is also a record for the Company.
“Both our
operating and financial numbers clearly illustrate the hard work and dedication
of each of our 8,500 Crew Members,” said Bob Fornaro, AirTran Airways’ chairman,
president and chief executive officer. “Posting these results during one of the
most trying economic times in decades also shows that customers are very
attracted to our unique combination of high-quality, low-cost
service.”
Excluding
$7.1 million of unrealized gains on the Company's future fuel hedge portfolio
recorded during the quarter, the economic net income for the fourth quarter was
$10.1 million or $0.07 per diluted share. In addition, the annual net income
results include $34.7 million of unrealized gains on the Company's future fuel
hedge portfolio, $3 million of gains on asset dispositions, and $3.3 million of
gains on extinguishment of debt, net of tax. Excluding these items, the
economic net income for 2009 was $93.6 million or $0.67 per diluted
share.
Network
Diversification:
The
Company continued to diversify its coast-to-coast network and has increased its
traffic to record levels in the Milwaukee and Orlando markets. AirTran Airways
now offers flights to more cities from Orlando than any other airline and serves
18 of the top 20 markets from Milwaukee. This continued network diversification
has paved the way for successful expansion into the Caribbean from Atlanta,
Baltimore, and Orlando.
“Further
diversifying our network strengthens our Company and allows us to maximize
revenue opportunities,” said Kevin Healy, AirTran Airways’ senior vice
president, marketing and planning. “Expanding our presence in key markets like
Baltimore, Milwaukee, and Orlando has been very successful and has allowed us to
bring more of our award-winning service to these markets and surrounding
communities. We have established a strong platform for future growth.”
Network
diversification highlights for 2009 and to date include:
|
·
|
Added
service to the Caribbean with the following new destinations: Cancun,
Mexico; Montego Bay, Jamaica; Nassau, Bahamas; and
Aruba.
|
|
·
|
Initiated
domestic service to seven new cities: Allentown, Pa.;
Asheville, N.C.; Atlantic City, N.J.; Branson, Mo.; Charleston, W.Va.; Key
West, Fla.; and Knoxville, Tenn.
|
|
·
|
Added
over 30 new routes, including nine from Atlanta, eight from Milwaukee,
five from Baltimore, and 12 from AirTran’s hometown of Orlando bringing
the total number of destinations served nonstop from Orlando to
43.
|
-more-
AirTran
Reports Record Income of $134.7 million for 2009
Add
One
|
·
|
Announced
new domestic service to Lexington, Ky.; Des Moines, Iowa; and Omaha, Neb.
to begin in 2010.
|
|
·
|
Established
a marketing partnership with SkyWest Airlines to support AirTran’s
Milwaukee hub.
|
Cost
and Financial Performance
In 2009,
AirTran Airways continued to lead the industry with the lowest non-fuel
operating cost per mile among major airlines on a stage-length adjusted basis.
AirTran has been able to maintain this advantage by operating North America’s
newest all-Boeing fleet, high asset utilization, and driving efficiencies from
all levels of the operation.
“Maintaining
our cost advantage is critical to the sustained success of AirTran Airways,”
said Arne Haak, AirTran Airways’ senior vice president of finance, treasurer and
chief financial officer. “Our cost structure is fundamental to the value we
provide our customers in quality service and affordable fares. We remain
focused on managing costs, improving our balance sheet and positioning ourselves
to compete successfully in a difficult marketplace.”
During
2009, AirTran Airways significantly strengthened its liquidity and cash position
through a number of transactions including extending and enhancing a $175
million credit facility and completing over $165 million in equity and debt
financing.
Cost and
financial performance highlights for 2009 to date include:
|
·
|
Annual
non-fuel cost per available seat mile (CASM), adjusted of 6.39 cents -
lowest among major airlines when adjusted for stage
length.
|
|
·
|
Full-time
equivalent (FTE) positions per aircraft were 56.8 at
year-end.
|
|
·
|
Ended
the year with $543 million in unrestricted
cash.
|
|
·
|
Received
improvements in credit rating and outlook from major credit rating
agencies.
|
|
·
|
Annual
fuel expense decreased $516 million compared to
2008.
|
|
·
|
Hedged
40 percent of 2010 fuel requirements with benefits beginning at $60 per
barrel.
|
Other
AirTran Airways Highlights:
Other
highlights of AirTran Airways' accomplishments in 2009 and to date
include:
|
·
|
Awarded
the prestigious Market Leadership Award from the leading industry
publication, Air
Transport World, for AirTran’s innovative combination of low-cost,
high-quality service and response to the global financial
crisis.
|
|
·
|
Ranked
#1 among all low-cost carriers for the second consecutive year in the
Airline Quality Rating (http://www.aqr.aero).
This is the fifth consecutive year AirTran Airways ranked third or
higher for quality among all U.S. carriers in this prestigious
rating.
|
|
·
|
Successfully
ratified collective bargaining agreement with Teamsters Local 528 which
represents mechanics and related crew
members.
|
|
·
|
Completed
installation of Gogo Inflight Internet on all 138 AirTran Airways
aircraft, becoming the first and only major airline to be 100 percent
Wi-Fi equipped.
|
|
·
|
Launched
special livery aircraft in partnership with the Atlanta Falcons, Baltimore
Ravens, Indianapolis Colts and Orlando
Magic.
|
|
·
|
Entered
into a multi-year partnership with the Orlando Magic to become “Champions
of the Community” sponsors while signing all-star center Dwight
Howard.
|
|
·
|
Partnered
with the Milwaukee Brewers to establish the AirTran Airways Landing Zone
at Miller Park and by signing Milwaukee Brewers slugger Ryan
Braun.
|
|
·
|
Signed
Baltimore Ravens tackle and inspiration for the box office hit The
Blind Side, Michael Oher, to a multi-year endorsement
deal.
|
|
·
|
Signed
multi-year agreement to be a Presenting Sponsor of Marquette University
Athletics and a Premier Corporate Partner of Marquette
University.
|
-more-
AirTran
Reports Record Income of $134.7 million for 2009
Add
Two
AirTran
Holdings, Inc. will conduct a conference call to discuss the year-end and
quarter's results today at 9:30 a.m. Eastern Standard Time. A live broadcast of
the conference call will be available via the Internet in the investor relations
section at http://www.airtran.com.
AirTran
Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI) and a Fortune
1000 company, has been ranked the number one low cost carrier in the
Airline Quality Rating study for the past two years. AirTran is the only
major airline with Gogo Inflight Internet on every flight and offers
coast-to-coast service on North America’s newest all-Boeing fleet. Its low-cost,
high-quality product also includes assigned seating, Business Class and
complimentary XM Satellite Radio on every flight. To book a flight, visit http://www.airtran.com.
Editor's
note: Statements regarding the Company's operational and financial success,
business model, expectation about future success, improved operational
performance and our ability to maintain or improve our low costs 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 for the year ended December 31, 2008. The
Company disclaims any obligation or duty to update or correct any of its
forward-looking statements.
# #
#
AirTran
Airways
Christopher White (Media)
678.254.7442
Jason
Bewley (Investor Relations)
407.318.5188
AirTran
Holdings, Inc.
Consolidated
Statements of Operations
(In
thousands, except per share data and statistical summary)
(Unaudited)
|
|
Three
Months Ended
December 31,
|
Percent
|
|||||||||
|
|
2009
|
2008
|
Change
|
||||||||
|
Operating
Revenues:
|
|
||||||||||
|
Passenger
|
|
$
|
536,458
|
$
|
553,230
|
(3.0
|
)
|
||||
|
Other
|
|
61,974
|
36,185
|
71.3
|
|||||||
|
Total
operating revenues
|
|
598,432
|
589,415
|
1.5
|
|||||||
|
Operating
Expenses:
|
|
||||||||||
|
Aircraft
fuel
|
|
195,827
|
194,487
|
0.7
|
|||||||
|
Salaries,
wages and benefits
|
|
124,739
|
112,420
|
11.0
|
|||||||
|
Aircraft
rent
|
|
60,615
|
60,440
|
0.3
|
|||||||
|
Maintenance,
materials and repairs
|
|
52,968
|
38,555
|
37.4
|
|||||||
|
Distribution
|
|
24,148
|
23,319
|
3.6
|
|||||||
|
Landing
fees and other rents
|
|
36,034
|
32,748
|
10.0
|
|||||||
|
Aircraft
insurance and security services
|
|
5,289
|
5,246
|
0.8
|
|||||||
|
Marketing
and advertising
|
|
7,150
|
9,361
|
(23.6
|
)
|
||||||
|
Depreciation
and amortization
|
|
14,751
|
15,491
|
(4.8
|
)
|
||||||
|
(Gain) loss
on disposition of assets
|
109
|
(4,218
|
)
|
—
|
|||||||
|
Other
operating
|
|
50,698
|
48,147
|
5.3
|
|||||||
|
Total
operating expenses
|
|
572,328
|
535,996
|
6.8
|
|||||||
|
Operating
Income
|
|
26,104
|
53,419
|
(51.1
|
)
|
||||||
|
Other
(Income) Expense:
|
|
||||||||||
|
Interest
income
|
|
(490
|
)
|
1,693
|
—
|
||||||
|
Interest
expense
|
|
22,899
|
22,144
|
3.4
|
|||||||
|
Capitalized
interest
|
|
(448
|
)
|
(679
|
)
|
(34.0
|
)
|
||||
|
Net
(gains) losses on derivative financial instruments
|
|
(12,680
|
)
|
147,686
|
—
|
||||||
|
Other
(income) expense, net
|
|
9,281
|
170,844
|
(94.6
|
)
|
||||||
|
Income
(Loss) Before Income Taxes
|
|
16,823
|
(117,425
|
)
|
—
|
||||||
|
Income
tax expense (benefit)
|
|
(268
|
)
|
4,169
|
—
|
||||||
|
Net
Income (Loss)
|
|
$
|
17,091
|
$
|
(121,594
|
)
|
—
|
||||
|
Income
(Loss) per Common Share
|
|
||||||||||
|
Basic
|
|
$
|
0.13
|
$
|
(1.03
|
)
|
—
|
||||
|
Diluted
|
|
$
|
0.11
|
$
|
(1.03
|
)
|
—
|
||||
|
Weighted-average
Shares Outstanding
|
|
||||||||||
|
Basic
|
|
133,909
|
118,034
|
13.4
|
|||||||
|
Diluted
|
|
168,602
|
118,034
|
42.8
|
|||||||
|
Operating
margin
|
|
4.4
|
percent
|
9.1
|
percent
|
(4.7
|
) pts.
|
||||
|
Net
margin
|
|
2.9
|
percent
|
(20.6
|
)
percent
|
23.5
|
pts.
|
||||
|
Net
margin, adjusted*
|
|
1.7
|
percent
|
(21.7
|
)
percent
|
23.4
|
pts.
|
||||
(continued
on next page)
|
|
Three
Months Ended
December
31,
|
Percent
|
|||||||||
|
|
2009
|
2008
|
Change
|
||||||||
|
Fourth
Quarter Statistical Summary:
|
|
||||||||||
|
Revenue
passengers
|
|
5,911,553
|
5,754,446
|
2.7
|
|||||||
|
Revenue
passenger miles (000s)
|
|
4,511,080
|
4,218,819
|
6.9
|
|||||||
|
Available
seat miles (000s)
|
|
5,795,856
|
5,359,177
|
8.1
|
|||||||
|
Passenger
load factor
|
77.8
|
percent
|
78.7
|
percent
|
(0.9
|
)
pts.
|
|||||
|
Departures
|
63,118
|
61,142
|
3.2
|
||||||||
|
Average
stage length (miles)
|
|
733
|
700
|
4.7
|
|||||||
|
Average
fare
|
|
$
|
90.75
|
$
|
96.14
|
(5.6
|
)
|
||||
|
Average
yield per RPM
|
|
11.89
|
cents
|
13.11
|
cents
|
(9.3
|
)
|
||||
|
Passenger
revenue per ASM
|
|
9.26
|
cents
|
10.32
|
cents
|
(10.3
|
)
|
||||
|
Total
revenue per ASM
|
10.33
|
cents
|
11.00
|
cents
|
(6.1
|
)
|
|||||
|
Operating
cost per ASM
|
|
9.87
|
cents
|
10.00
|
cents
|
(1.3
|
)
|
||||
|
Operating
cost per ASM, adjusted*
|
|
9.87
|
cents
|
10.08
|
cents
|
(2.1
|
)
|
||||
|
Non-fuel
operating cost per ASM
|
|
6.50
|
cents
|
6.37
|
cents
|
2.0
|
|||||
|
Non-fuel
operating cost per ASM, adjusted*
|
6.49
|
cents
|
6.45
|
cents
|
0.6
|
||||||
|
Average
cost of aircraft fuel per gallon
|
|
$
|
2.15
|
$
|
2.32
|
(7.3
|
)
|
||||
|
Average
economic cost of aircraft fuel per gallon
|
$
|
2.09
|
$
|
4.10
|
(49.0
|
)
|
|||||
|
Gallons
of fuel burned (000s)
|
|
90,951
|
84,000
|
8.3
|
|||||||
|
Operating
aircraft in fleet at end of period
|
|
138
|
136
|
1.5
|
|||||||
|
Average
daily aircraft utilization (hours)
|
10.8
|
10.4
|
3.8
|
||||||||
|
Full-time
equivalent employees at end of period
|
7,844
|
7,489
|
4.7
|
||||||||
|
*
|
Statistical
calculations for 2009 and 2008, on an adjusted basis, exclude gains and
losses as detailed in the attached
Reconciliation
of GAAP Financial Information to Non-GAAP Financial
Information. During the fourth quarter 2009,
we
recorded a $2.4 million reduction in advertising expense to correct
overstatements of advertising expense recognized
in
prior periods. Our fourth quarter 2008 financial data
has been
restated to reflect the required retrospective application
of
our adoption of Accounting Standards Codification
(ASC) 470-20, "Debt
with Conversion and Other Options - Cash
Conversion."
The
restatement resulted in
a $1.4 million decrease and $3.2 million increase
to operating income and net
loss,
respectively,
for the three months ended December
31, 2008.
|
AirTran
Holdings, Inc.
Consolidated
Statements of Operations
(In
thousands, except per share data and statistical summary)
(Unaudited)
|
|
Twelve
Months Ended
December 31,
|
Percent
|
||||||||||
|
|
2009
|
2008
|
Change
|
|||||||||
|
Operating
Revenues:
|
|
|||||||||||
|
Passenger
|
|
$
|
2,088,965
|
$
|
2,413,609
|
(13.5
|
)
|
|||||
|
Other
|
|
252,477
|
138,869
|
81.8
|
||||||||
|
Total
operating revenues
|
|
2,341,442
|
2,552,478
|
(8.3
|
)
|
|||||||
|
Operating
Expenses:
|
|
|||||||||||
|
Aircraft
fuel
|
|
678,835
|
1,194,938
|
(43.2
|
)
|
|||||||
|
Salaries,
wages and benefits
|
|
488,366
|
474,889
|
2.8
|
||||||||
|
Aircraft
rent
|
|
242,236
|
242,674
|
(0.2
|
)
|
|||||||
|
Maintenance,
materials and repairs
|
|
198,852
|
163,350
|
21.7
|
||||||||
|
Distribution
|
|
94,688
|
100,400
|
(5.7
|
)
|
|||||||
|
Landing
fees and other rents
|
|
144,756
|
137,738
|
5.1
|
||||||||
|
Aircraft
insurance and security services
|
|
21,045
|
21,556
|
(2.4
|
)
|
|||||||
|
Marketing
and advertising
|
|
38,097
|
40,475
|
(5.9
|
)
|
|||||||
|
Depreciation
and amortization
|
|
56,871
|
59,049
|
(3.7
|
)
|
|||||||
|
Gain on
disposition of assets
|
(2,964
|
)
|
(20,015
|
)
|
(85.2
|
)
|
||||||
|
Impairment
of goodwill
|
—
|
8,350
|
—
|
|||||||||
|
Other
operating
|
|
203,650
|
204,895
|
(0.6
|
)
|
|||||||
|
Total
operating expenses
|
|
2,164,432
|
2,628,299
|
(17.6
|
)
|
|||||||
|
Operating
Income (Loss)
|
|
177,010
|
(75,821
|
)
|
—
|
|||||||
|
Other
(Income) Expense:
|
|
|||||||||||
|
Interest
income
|
|
(5,702
|
)
|
(3,679
|
)
|
55.0
|
||||||
|
Interest
expense
|
|
83,967
|
85,479
|
(1.8
|
)
|
|||||||
|
Capitalized
interest
|
|
(1,692
|
)
|
(7,707
|
)
|
(78.0
|
)
|
|||||
|
Gain
on extinguishment of debt
|
(4,278
|
)
|
—
|
—
|
||||||||
|
Net
(gains) losses on derivative financial instruments
|
|
(30,624
|
)
|
150,836
|
—
|
|||||||
|
Other
(income) expense, net
|
|
41,671
|
224,929
|
(81.5
|
)
|
|||||||
|
Income
(Loss) Before Income Taxes
|
|
135,339
|
(300,750
|
)
|
—
|
|||||||
|
Income
tax expense (benefit)
|
|
677
|
(34,416
|
)
|
—
|
|||||||
|
Net
Income (Loss)
|
|
$
|
134,662
|
$
|
(266,334
|
)
|
—
|
|||||
|
Income
(Loss) per Common Share
|
|
|||||||||||
|
Basic
|
|
$
|
1.09
|
$
|
(2.44
|
)
|
—
|
|||||
|
Diluted
|
|
$
|
0.95
|
$
|
(2.44
|
)
|
—
|
|||||
|
Weighted-average
Shares Outstanding
|
|
|||||||||||
|
Basic
|
|
123,624
|
109,153
|
13.3
|
||||||||
|
Diluted
|
|
146,891
|
109,153
|
34.6
|
||||||||
|
Operating
margin
|
|
7.6
|
percent
|
(3.0
|
)
percent
|
10.6
|
pts.
|
|||||
|
Net
margin
|
|
5.8
|
percent
|
(10.4
|
)
percent
|
16.2
|
pts.
|
|||||
|
Net
margin, adjusted*
|
|
4.0
|
percent
|
(9.9
|
)
percent
|
13.9
|
pts.
|
|||||
(continued
on next page)
|
|
Twelve
Months Ended
December
31,
|
Percent
|
|||||||||
|
|
2009
|
2008
|
Change
|
||||||||
|
Twelve
Month Statistical Summary:
|
|
||||||||||
|
Revenue
passengers
|
|
23,997,810
|
24,619,120
|
(2.5
|
)
|
||||||
|
Revenue
passenger miles (000s)
|
|
18,588,036
|
18,955,843
|
(1.9
|
)
|
||||||
|
Available
seat miles (000s)
|
|
23,294,117
|
23,809,190
|
(2.2
|
)
|
||||||
|
Passenger
load factor
|
79.8
|
percent
|
79.6
|
percent
|
0.2
|
pts.
|
|||||
|
Departures
|
251,694
|
260,120
|
(3.2
|
)
|
|||||||
|
Average
stage length (miles)
|
|
738
|
728
|
1.4
|
|||||||
|
Average
fare
|
|
$
|
87.05
|
$
|
98.04
|
(11.2
|
)
|
||||
|
Average
yield per RPM
|
|
11.24
|
cents
|
12.73
|
cents
|
(11.7
|
)
|
||||
|
Passenger
revenue per ASM
|
|
8.97
|
cents
|
10.14
|
cents
|
(11.5
|
)
|
||||
|
Total
revenue per ASM
|
10.05
|
cents
|
10.72
|
cents
|
(6.3
|
)
|
|||||
|
Operating
cost per ASM
|
|
9.29
|
cents
|
11.04
|
cents
|
(15.9
|
)
|
||||
|
Operating
cost per ASM, adjusted*
|
|
9.30
|
cents
|
11.09
|
cents
|
(16.1
|
)
|
||||
|
Non-fuel
operating cost per ASM
|
|
6.38
|
cents
|
6.02
|
cents
|
6.0
|
|||||
|
Non-fuel
operating cost per ASM, adjusted*
|
6.39
|
cents
|
6.07
|
cents
|
5.3
|
||||||
|
Average
cost of aircraft fuel per gallon
|
|
$
|
1.87
|
$
|
3.25
|
(42.5
|
)
|
||||
|
Average
economic cost of aircraft fuel per gallon
|
$
|
1.88
|
$
|
3.60
|
(47.8
|
)
|
|||||
|
Gallons
of fuel burned (000s)
|
|
363,215
|
367,169
|
(1.1
|
)
|
||||||
|
Operating
aircraft in fleet at end of period
|
|
138
|
136
|
1.5
|
|||||||
|
Average
daily aircraft utilization (hours)
|
11.0
|
11.0
|
—
|
||||||||
|
Full-time
equivalent employees at end of period
|
7,844
|
7,489
|
4.7
|
||||||||
|
*
|
Statistical
calculations for 2009 and 2008, on an adjusted basis, exclude gains and
losses as detailed in the attached
Reconciliation
of GAAP Financial Information to Non-GAAP Financial
Information. During the fourth quarter 2009,
we
recorded a $2.4 million reduction
in advertising expense to correct overstatements of advertising expense
recognized
in
prior periods. Our 2008
financial
data
has been
restated to reflect the required retrospective application
of
our adoption
of
Accounting Standards
Codification
(ASC) 470-20, "Debt
with Conversion and Other Options - Cash Conversion."
The
restatement resulted
in
a $3.8
million increase and $7.5 million decrease
to operating loss and net
loss, respectively,
for
the twelve months ended December
31, 2008.
|
Reconciliation
of GAAP Financial Information to Non-GAAP Financial Information
Three
and Twelve Months Ended December 31, 2009 and 2008
We
prepare our financial statements in accordance with generally accepted
accounting principles (GAAP). Within our press release, we make reference to
certain non-GAAP financial measures including economic net income and adjusted
net margin. Our disclosures may also exclude special or non-recurring items
that we believe should be taken into consideration to more accurately measure
and monitor our operating performance. Our disclosure of non-fuel operating
cost per available seat mile (non-fuel CASM) is consistent with financial
measures reported by other airlines and analysts. We believe that non-fuel CASM
and non-fuel CASM, adjusted, provide a useful understanding of our operations.
Both the cost and availability of fuel are subject to many economic and
political factors and are therefore beyond our control. Our press release
also contains information regarding the components of GAAP fuel expense and net
gains and losses on derivative financial instruments. These amounts have
been included as supplemental information.
We
disclose both the average fuel cost per gallon and the average economic fuel
cost per gallon. Average fuel cost per gallon is based on fuel expense as
measured by GAAP and includes realized gains and losses on fuel related
derivatives instruments, which are accounted for as hedges. Average economic
fuel cost per gallon includes realized gains and losses on all fuel related
derivative instruments, including those which were not accounted for as hedges,
but does not include unrealized gains and losses recognized under
GAAP.
We
consider our fuel derivative contracts an important tool in managing costs
related to jet fuel purchases. We believe it is important to assess our
financial performances by including the effect of the net cash settlements and
excluding the mark-to-market adjustments for our unrealized gains and losses
recorded in the income statement for contracts settling in future
periods.
We
believe that these measures represent important internal measures of
performance. Accordingly, where these non-GAAP measures are provided, it is done
so that investors have the same financial data that management uses in
evaluating performance with the belief that it will assist the investment
community in assessing our underlying performance on a year-over-year and a
quarter-over-quarter basis. However, because these measures are not determined
in accordance with accounting principles generally accepted in the United
States, such measures are susceptible to varying calculations and not all
companies calculate the measures in the same manner. As a result, the
aforementioned measures as presented may not be directly comparable to similarly
titled measures presented by other companies. The non-GAAP measures are
presented as supplemental information and not as alternatives to any GAAP
measurements.
|
Dollars
in thousands, unless otherwise noted
|
Three
months ended
December
31,
|
Twelve
Months ended
December
31,
|
||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
The
following table calculates net margin, adjusted:
|
||||||||||||||||
|
Net
income (loss)
|
$
|
17,091
|
$
|
(121,594
|
)
|
$
|
134,662
|
$
|
(266,334
|
)
|
||||||
|
Gain
on extinguishment of debt, net of taxes
|
—
|
—
|
(3,333
|
)
|
—
|
|||||||||||
|
Unrealized
(gains) losses on derivative financial
instruments,
net of taxes
|
(7,082
|
)
|
(2,010
|
)
|
(34,746
|
)
|
24,531
|
|||||||||
|
(Gain)
loss on disposition of assets, net of taxes
|
109
|
(4,218
|
)
|
(2,964
|
)
|
(20,015
|
)
|
|||||||||
|
Impairment
of goodwill
|
—
|
—
|
—
|
8,350
|
||||||||||||
|
Net
income (loss), adjusted
|
$
|
10,118
|
$
|
(127,822
|
)
|
$
|
93,619
|
$
|
(253,468
|
)
|
||||||
|
Total operating revenues
|
$
|
598,432
|
|
$
|
589,415
|
$
|
2,341,442
|
|
$
|
2,552,478
|
||||||
|
Net
margin, adjusted
|
1.7
|
%
|
(21.7
|
) %
|
4.0
|
%
|
(9.9
|
) %
|
||||||||
|
The
following table calculates operating cost per ASM,
adjusted:
|
||||||||||||||||
|
Total operating expenses
|
$
|
572,328
|
$
|
535,996
|
$
|
2,164,432
|
$
|
2,628,299
|
||||||||
|
(Gain)
loss on disposition of assets
|
(109
|
)
|
4,218
|
2,964
|
20,015
|
|||||||||||
|
Impairment
of goodwill
|
—
|
—
|
—
|
(8,350
|
)
|
|||||||||||
|
Operating
expenses, adjusted
|
$
|
572,219
|
$
|
540,214
|
$
|
2,167,396
|
$
|
2,639,964
|
||||||||
|
ASMs
(000)
|
5,795,856
|
5,359,177
|
23,294,117
|
23,809,190
|
||||||||||||
|
Operating
cost per ASM (cents), adjusted
|
9.87
|
10.08
|
9.30
|
11.09
|
||||||||||||
|
Dollars
in thousands, unless otherwise noted
|
Three
months ended
December
31,
|
Twelve
Months ended
December
31,
|
||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
The
following table calculates non-fuel operating cost per ASM and non-fuel
operating cost per ASM, adjusted:
|
||||||||||||||||
|
Total
operating expenses
|
$
|
572,328
|
$
|
535,996
|
$
|
2,164,432
|
$
|
2,628,299
|
||||||||
|
Aircraft
fuel
|
(195,827
|
)
|
(194,487
|
)
|
(678,835
|
)
|
(1,194,938
|
)
|
||||||||
|
Non-fuel
operating costs
|
$
|
376,501
|
$
|
341,509
|
$
|
1,485,597
|
$
|
1,433,361
|
||||||||
|
ASMs
(000)
|
5,795,856
|
5,359,177
|
23,294,117
|
23,809,190
|
||||||||||||
|
Non-fuel
operating cost per ASM (cents)
|
6.50
|
6.37
|
6.38
|
6.02
|
||||||||||||
|
Total
operating expenses
|
$
|
572,328
|
$
|
535,996
|
$
|
2,164,432
|
$
|
2,628,299
|
||||||||
|
Aircraft
fuel
|
(195,827
|
)
|
(194,487
|
)
|
(678,835
|
)
|
(1,194,938
|
)
|
||||||||
|
(Gain)
loss on disposition of assets
|
(109
|
)
|
4,218
|
2,964
|
20,015
|
|||||||||||
|
Impairment
of goodwill
|
—
|
—
|
—
|
(8,350
|
)
|
|||||||||||
|
Non-fuel
operating cost, adjusted
|
$
|
376,392
|
$
|
345,727
|
$
|
1,488,561
|
$
|
1,445,026
|
||||||||
|
ASMs
(000)
|
5,795,856
|
5,359,177
|
23,294,117
|
23,809,190
|
||||||||||||
|
Non-fuel
operating cost per ASM (cents), adjusted
|
6.49
|
6.45
|
6.39
|
6.07
|
||||||||||||
|
The
following table provides detail of certain components of aircraft fuel
expense and calculates average economic cost of aircraft fuel per
gallon:
|
||||||||||||||||
|
Aircraft
fuel expense
|
$
|
195,827
|
$ |
194,487
|
$ |
678,835
|
$ |
1,194,938
|
||||||||
|
Realized
losses on derivatives related to 2009 contracts
terminated,
recorded in net (gains) losses on derivative
financial
instruments
|
—
|
109,370
|
—
|
109,370
|
||||||||||||
|
Realized
(gains) losses on derivatives that do not qualify for
hedge
accounting, recorded in net (gains) losses on
derivative
financial instruments
|
(5,596
|
)
|
40,327
|
4,122
|
16,936
|
|||||||||||
|
Economic
fuel expense
|
$
|
190,231
|
$
|
344,184
|
$
|
682,957
|
$
|
1,321,244
|
||||||||
|
Gallons
of fuel burned (000s)
|
90,951
|
84,000
|
363,215
|
367,169
|
||||||||||||
|
Economic
cost of aircraft fuel per gallon
|
$
|
2.09
|
$
|
4.10
|
$
|
1.88
|
$
|
3.60
|
||||||||
|
The
following table calculates diluted earnings (loss) per share, adjusted for
the three and twelve months ended December 31, 2009 and
2008:
|
||||||||||||||||
|
Net
income (loss)
|
$
|
17,091
|
$
|
(121,594
|
)
|
$
|
134,662
|
$
|
(266,334
|
)
|
||||||
|
Gain
on extinguishment of debt, net of taxes
|
—
|
—
|
(3,333
|
)
|
—
|
|||||||||||
|
Unrealized
(gains) losses on derivative financial
instruments,
net of taxes
|
(7,082
|
)
|
(2,010
|
)
|
(34,746
|
)
|
24,531
|
|||||||||
|
(Gain)
loss on disposition of assets, net of taxes
|
109
|
(4,218
|
)
|
(2,964
|
)
|
(20,015
|
)
|
|||||||||
|
Impairment
of goodwill
|
—
|
—
|
—
|
8,350
|
||||||||||||
|
Net
income (loss), adjusted
|
$
|
10,118
|
$
|
(127,822
|
)
|
$
|
93,619
|
$
|
(253,468
|
)
|
||||||
|
Plus
income effect of assumed interest on
convertible
debt
|
956
|
—
|
5,121
|
—
|
||||||||||||
|
Income
(loss) after assumed conversion, diluted
|
$
|
11,074
|
$
|
(127,822
|
)
|
$
|
98,740
|
$
|
(253,468
|
)
|
||||||
|
Adjusted
weighted-average shares outstanding, diluted
|
152,402
|
118,034
|
146,891
|
109,153
|
||||||||||||
|
Diluted
earnings (loss) per share (dollars), adjusted
|
$
|
0.07
|
$
|
(1.08
|
)
|
$
|
0.67
|
$
|
(2.32
|
)
|
||||||
COMPANY
ESTIMATES/FORWARD LOOKING STATEMENTS
The
following table contains our year-over-year capacity projections for
2010:
|
Period
|
|
Forecasted
ASMs
|
|
|
Q1
2010
|
|
Up
approximately 7% - 8%
|
|
| Q2 2010 | Up approximately 4% - 4 1/2% | ||
| Q3 2010 | Up approximately 2% | ||
| Q4 2010 | Up approximately 2% | ||
| 2010 | Up approximately 3% - 4% |
The following table contains our year-over-year projections for Q1 2010
total unit revenues, non-fuel operating unit costs, and average cost per gallon
of fuel, all-in and 2010 non-fuel operating unit costs:
|
|
Projection
|
|
|
|
Total
unit revenue per ASM in Q1
|
Up
2 1/2% to 3 1/2%
|
|
|
|
Non-fuel
unit operating cost per ASM in Q1
|
Up
2 1/2% to 3%
|
||
| Non-fuel unit operating cost per ASM 2010 | Up 3% to 4% | ||
|
Average
cost per gallon of fuel, all-in Q1
|
$2.25
to $2.30
|
The
following table contains our percentage of fuel hedged for 2010:
|
Period
|
|
%
of Fuel Hedged
|
|
|
Q1
2010
|
|
46%
|
|
| Q2 2010 | 40% | ||
| Q3 2010 | 37% | ||
| Q4 2010 | 39% | ||
| 2010 | 40% |
As of
December 31, 2009, we had aggregate unrestricted cash, cash equivalents, and
short-term investments of $544.3 million, and $52.4 million of restricted
cash. During October 2009, we completed a public offering of $115.0 million
in 5.25% convertible senior notes due in 2016 and a public offering of 11.3
million shares of our common stock at a price of $5.08 per share. The net
proceeds from the two offerings aggregated approximately $166.3
million.
Contact: Christopher White (Media), +1-678.254.7442; or Jason Bewley (Investor Relations), +1-407.318.5188, both of AirTran Airways