The struggle to keep the hostile takeover bid from taking place is weighing on Midwest Air. The airline announced the other day that their second quarter profit fell nearly 50 percent from last year despite a 10 percent gain in revenue.
Midwest Air Group Inc., (MEH) the parent company of Midwest Air did post a $4.9 million dollar profit down from last years $8.8 million dollar profit.
Midwest Air management said the cost of fending off a hostile takeover attempt by Orlando based AirTran Airways cost the company $2.9 million dollars this quarter alone. Further costs held down profits including the airlines ramping up of expansion plans and passengers flying on longer routes.
This year looks to be better than last year at the same time. Midwest Air has posted a $12.9 million dollar profit to date compared to last years just $120,000 dollar profit.
But despite the better year, the company continues to be in a position that leaves it open as a takeover target. There are very few markets that remain open that Midwest Air could go into without facing stiff competition from low cost carriers and even legacy carriers that would drastically under price them. First class seating and warm cookies are nice touches at the airline, but for the health of the airline, something has to be done to make the airline more competitive or they will be a part of AirTran Airways within the year.
Milwaukee BizJournal
Related: AirTran Airways Comments on Midwest Air's Performance
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