AirTran Reports 2Q Profit, Says Further Atlanta Service Cuts Unlikely

By Jim Burress

Atlanta, GA – AirTran's second quarter net income of 78.4-million dollars represents a huge shift over the same period a year ago, when the airline lost nearly 15-million dollars.

So far this year AirTran has grown its Milwaukee presence by 30 percent. CEO Bob Fornaro had said the airline's expansion would come partly at the expense of its Atlanta hub. But, in a webcast to analysts, Fornaro indicated further cuts here are unlikely.

"Atlanta's performing well. It's more impacted by business travel weakness than other parts of our system, but I think the changes we made last fall have served us well."

Looking ahead, AirTran executives say upcoming increases in engine and airframe maintenance costs as well as ever-higher airport landing fees will pose a challenge. Still, they predict the airline will again make a profit in the third quarter.

Jim Burress, WABE News.