AirTran expecting loss for fiscal year

The parent company of Orlando, Florida-based AirTran Airways has said that it expects the airline to post its first yearly loss since 1999.

Arne Haak, the company’s CFO, reported at the Imperial Capital Global Opportunities Conference in New York that the low-cost carrier experienced reduced demand during October as financial markets tumbled. The CFO added, however, that holiday demand and demand over the long term are holding up well.

“We’ve replaced high oil and a moderate economy with lower oil and an uncertain economy,” said Haak said during his presentation at the event.

AirTran has cut costs, added new fees, sold aircraft and raised fares at different times in order to cope with challenging economic conditions. Haak added that the airline could sell more if its planes if the economy continues to worsen.

“The company is definitely in a much better place today to respond to our industry,” he stressed, noting that the airline is keeping a close watch on the tight credit market.

“Our thinking about the capital markets is very reflective in what we have done to our fleet plan,” Haak continued. “We have cleared the deck of 36 airplanes,” which includes aircraft that have been sold as well as purchases delayed and deferred.

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