High fuel costs are hammering airlines around the country and AirTran Airways, which tried to take over Midwest Airlines a year ago is no exception.
The Orlando, Florida-based company announced today that it is suspending its growth plan after suffering a $34.8 million loss, or 38 cents per share, in the first quarter.
The average price per gallon of fuel increased 49.3 percent to $3 in the first quarter compared to $2.01 in the first quarter of 2007. AirTran said the company’s fuel expense was $268 million, up $102 million from the same period of the prior year.
Going forward, the company said it has increased its fuel hedge positions to cover approximately 50 percent of its fuel needs for the remainder of the year.
See release: http://www.wisbusiness.com/index.iml?Article=124204