AirTran Holdings Inc., (AAI) the parent company of AirTran Airways stock took a hit yesterday as the company reported a loss of $4.3 million dollars compared to a profit of nearly $1 million last year 3rd quarter. The company is saying that a $1.5 million tax charge and restrictions on carry-on luggage pulled down profits. Also the carriers Wendy's Promotion helped weigh down profits.
Newly combined US Airways after coming off a healthy 2nd quarter profit slid to a loss of $78 million for the 3rd quarter. The parent company US Airways Group Inc., (LCC) said that the company would have made a $100 million dollar profit if it excluded special costs. "Looking forward, given our current fuel and revenue forecasts for the remainder of the year, we anticipate reporting a profit in the seasonally difficult fourth quarter," said US Airways Group Chairman and CEO Doug Parker.
So what does this mean? Well it means that for many airlines cutting costs are starting to show in the profit lines. For the other airlines it means that they need to rework some of their plans with expansion or cost cutting. The busier holiday travel season is approaching. If airlines do not make money during this season, 2007 could become very critical.
Yahoo! News
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