Largest 717 Fleet Reports Profitability for Fourth Quarter and Full-Year

AirTran Holdings, Inc., the parent company of AirTran Airways, Inc., is reporting fourth quarter and full-year earnings. Net income for the fourth quarter 2002 was $7.5 million, versus a loss of $14.2 million in the year-earlier period. (Fourth-quarter results of 2001 were reduced by $1.3 million, representing an adjustment to amounts received under a government grant program.)

Oh -- and there's the 717

AirTran Airways is the world's largest operator of the Boeing 717, the most modern, environmentally friendly aircraft in its class. During the fourth quarter, capacity increased 39.3% year over year as AirTran Airways continued to add new fuel efficient Boeing 717 aircraft. Traffic increased 44.6%, resulting in a 2.4 percentage point increase in load factor. Passenger yield increased 2.3% to 13.2 cents, resulting in a 6.3% increase in year over year unit revenue to 8.8 cents. Fourth quarter operating cost per available seat mile improved by 4.8% to 8.4 cents compared to 8.8 cents in the fourth quarter of 2001. For the full year, unit costs improved 8.8% to 8.5 cents.

Robert L. Fornaro, president and chief operating officer remarked: "Our operating performance steadily improved throughout the year as we added new 717s. In addition, our employees continued to deliver the caring customer service that distinguishes AirTran Airways from the other airlines. Great service and low fares will keep our customers coming back."

Stan Gadek, senior vice president of finance and chief financial officer said: "AirTran Airways' continued improvement in unit costs reflects the outstanding economic performance of the Boeing 717. In addition, AirTran Airways' Crew Members also contributed to the cost reductions by controlling expenses and achieving high levels of productivity. Our fourth quarter financial performance was truly a team effort."

FMI: www.airtran.com