AirTran's Atlanta Presence Likely to Lessen

By Jim Burress

Atlanta, GA – Despite record revenues and a record number of passengers, AirTran Airways lost $13.5-million for the second quarter of 2008.

AirTran executives say there's one reason for the loss: fuel costs. The company says it paid an average of $2.20 a gallon for jet fuel in the second quarter of 2007. For this year, the price jumped to $3.75. That translates to an additional $167-million.

AirTran's President and CEO Bob Fornaro says there's no "silver bullet" for fixing the problem. He told investors the airline will likely continue cutting routes, pay, and sell off airplanes, if necessary.

That's bad news for Atlanta. Company executives say local fares will likely increase, and AirTran's Atlanta hub will get smaller. Instead, the discount carrier will focus more on direct, point-to-point leisure routes that other carriers have abandoned.