In what could spell good news for cheap airplane tickets and cheap vacation packages, AirTran has acknowledged that it would consider going into new markets if the pending United-Continental merger results in the new larger United Airlines downsizing select hubs.
AirTran has identified Cleveland in particular as a market it would be interested in entering if the Continental hub there ends up being downsized as a result of the merger. AirTran is also looking for more space to become available at New Yorks LaGuardia and Washingtons Reagan airports.
AirTran reported second quarter earnings of $12.4 million. This profit was generated in the face of much higher fuel costs and was driven by AirTrans success in increasing ticket prices and filling more of its seats. Losses from derivatives and fuel hedges reduced AirTrans profit by 84 percent when compared to the same quarter last year.
AirTran is focusing on reducing its overall costs over the next two years and will defer the delivery of nine Boeing 737s that were previously scheduled to be delivered between 2011 and 2014. These planes are now planned to arrive between 2015 and 2017.
AirTran is pleased with its performance in both the Atlanta and Milwaukee markets. It sees Milwaukee as exceptionally strong and Atlanta coming back faster that the system average. Almost 45 percent of AirTrans capacity is tied to Atlanta and about 15 percent to Milwaukee.
The other market AirTran is excited about is Orlando where it is seeing increased interest in meetings and conventions for the fall.
www.cheapfares.com