AirTran Holdings Inc.'s (AAI) traffic growth gained momentum
again in March, while the company's vigorous capacity increases
meant planes weren't quite as full as a year earlier.
Overall, carriers have been reporting improved traffic recently
as demand for air travel bounces back from the recession, though
some--like United and Continental airlines--have started to see
traffic abate.
AirTran's fellow discounter Southwest Airlines Co. (LUV), which
is expected to acquire AirTran by the end of the quarter in a $1.4
billion deal, has reported increasing traffic-growth momentum in
recent months.
For March, AirTran said its traffic increased 5.5%, the second
straight month that the rate of growth has accelerated. A 6.8%
increase in capacity pushed load factor, a measure of plane
occupancy, down a percentage point to 82.8%.
However, for the first quarter, load factor rose to a record
78.5%, the company said. Traffic and capacity increased 3.2% and
1.5%, respectively, for the period.
In its fourth-quarter results, AirTran's bottom line slumped
under the weight of a glut of charges, but its revenue and
operational metrics continued their rise.
AirTran shares were up 0.3% at $7.43 in recent trading.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com