AirTran Airways Boeing 717-231 N932AT (msn 55073) (Milwaukee Brewers) BWI (Tony Storck), originally uploaded by Airliners Gallery.
AirTran Airways (Orlando) at the Air Line Pilots Association Int’l (ALPA), representing the pilots of AirTran Airways, have reached a tentative agreement after more than five years of contract negotiations. The agreement represents the first contract for AirTran pilots since they joined ALPA in 2009.
The terms of the tentative agreement establish the foundation for a fair and equitable contract. Details of the settlement will not be released to the public until approved by the AirTran Master Executive Council (MEC) and ratified by AirTran pilots. If the pilot representatives on the AirTran MEC give their approval, a membership ratification vote will take place in November.
AirTran has agreed to be acquired by Southwest Airlines and is awaiting shareholder and regulatory approval for the buyout.
On the financial side, AirTran Holdings, Inc., the parent company of AirTran Airways, Inc., today reported a net profit of $36.3 million or $0.22per diluted share for the third quarter of 2010. During the quarter, the Company reported operating income of $56.7 million.
Included in these third quarter results is a non-operating gain on derivative financial instruments of $15.3 million. This non-operating gain on derivative financial instruments was largely attributable to unrealized increases in the fair value of our future fuel-related derivative assets. During the same period in 2009, AirTran Airways reported net income of $10.4 million, and diluted earnings per common share of $0.08. Included in our third quarter 2009 results is a non-operating loss on derivative financial instruments of $10.3 million. The Company ended the third quarter with $424.5 million in unrestricted cash and the Company’s revolving line of credit remains undrawn.
During this period, the Company also achieved an all-time record for traffic (revenue passenger miles), and second highest load factor in Company history. AirTran Airways also established record setting operational metrics during the quarter, including the highest ever performance in on-time arrivals at 83.4 percent. In July alone, AirTran Airways served more than 2.4 million customers and achieved a load factor in excess of 88 percent. The Company continued to rank among the top of the industry in completion factor, mishandled baggage rate and the number of customer complaints the Department of Transportation receives.
Copyright Photo: Tony Storck. Please click on photo for further details.