AirTran posts quarterly profit CHICAGO (Reuters) =97 AirTran Holdings, parent of low-fare airline AirTran= =20 Airways, Tuesday reported a quarterly profit and said it expects a=20 full-year profit as well despite weak travel demand that has hammered=20 larger rivals. AirTran, based in Orlando, Fla., said bookings suffered in=20 March because of the Iraq war, as they did for other U.S. airlines, but=20 have gradually firmed since then. AirTran joined low-fare Southwest=20 Airlines in posting a quarterly profit. "(The rise) is pretty gradual, but= =20 we are seeing the same type of pattern in May," Chief Executive Joseph=20 Leonard told Reuters in an interview. "I am not talking about a rebound,=20 but the slope of the curve is starting back up rather than down." AirTran=20 shares rose 3.47 percent to $7.75 Tuesday on the New York Stock Exchange, a= =20 high since August 2001, just a month before the Sept. 11 attacks on New=20 York and Washington, D.C., which triggered an historic airline industry=20 downturn. The shares rose more than 72 percent in the first quarter to=20 $6.73, while the American Stock Exchange airline index fell nearly 24=20 percent. After rapid growth in 2002, AirTran expects to increase capacity=20 by about 22% in 2003, excluding West Coast flights operated for AirTran by= =20 another carrier. It plans for 25% annual growth over the next five years,=20 he said. The growth target may be revised up or down depending on=20 conditions, but at this point revenue production has kept pace with=20 increased capacity, Leonard said. AirTran hopes to order up to 100 new=20 planes for the increased capacity. "AirTran had a fourth consecutive=20 quarter of profitability entering a very tough period with the Iraq war,"=20 Blaylock & Partners analyst Ray Neidl said. "They have laid the basis for a= =20 sound company and continue their aggressive growth program." LOW-COST PROFIT AirTran, which has its main hub in Atlanta, reported a profit of $2=20 million, or 3 cents per share, in the first quarter, compared with a loss=20 of $3 million, or 4 cents per share, a year earlier. Analysts' mean=20 forecast was for AirTran to report a profit of 2 cents per share, according= =20 to research firm Thomson First Call. Total operating revenue rose 30.6=20 percent to $208.0 million in the quarter from a year earlier for AirTran,=20 which was one of only a few U.S. airlines to report a full 2002 profit.=20 Alaska Air Group, the No. 9 U.S. air carrier and parent of Alaska Airlines,= =20 Tuesday reported a $56.3 million net loss. Southwest, the No. 6 U.S. air=20 carrier, reported a $24 million quarterly profit Monday. Larger airlines=20 reported huge losses last week. Delta Air Lines Inc. reported a $466=20 million net loss, Northwest Airlines posted a $396 million net loss and=20 Continental Airlines reported a $221 million net loss. American Airlines parent AMR is scheduled to report results Wednesday.=20 AirTran took delivery of seven Boeing 717s in the quarter. It plans to add= =20 more 717s and to retire its last DC-9s by October, creating an all-717=20 fleet of 73 planes. The air carrier has talked with Boeing and with Airbus= =20 over adding another airplane model with a longer range to open more=20 east-west U.S. flying. More cross country flying could reduce quarterly=20 earnings fluctuations. A decision could come by mid-summer, but AirTran=20 said it felt no pressure to make a decision quickly on the order for up to= =20 100 jets. While it prefers new planes, AirTran officials said that the air= =20 carrier could use older planes temporarily. AirTran plans to add flights to= =20 Denver, Los Angeles and Las Vegas in the second quarter and has increased=20 the number of flights to several cities. Ryan International Airlines will=20 operate the flights between Los Angeles and Atlanta and Las Vegas and=20 Atlanta and record that traffic and capacity *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.pscutt.com TnT Webdirectory: http://search.co.tt *********************************************************