Airtran 2007 Annual Report Download - page 32

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26
During 2007 we:
• Carried in excess of 23.7 million revenue passengers;
• Continued to reduce non-fuel unit operating cost, as we reduced non-fuel operating cost per available seat mile for the
sixth consecutive year;
• Took delivery of ten new B737 aircraft;
• Secured financing for nine of our ten aircraft deliveries scheduled for 2008;
• Arranged new financing for aircraft pre-delivery deposits for 18 aircraft deliveries;
• Initiated new service to Charleston, South Carolina, Daytona Beach, Florida, Newburgh, New York, Phoenix, Arizona,
Portland, Maine, San Diego, California and St. Louis, Missouri;
• Launched 30 new non-stop routes
• Created over 800 new jobs throughout our network; and
• Announced that we will begin service to San Juan, Puerto Rico in 2008.
Our plans for 2008 focus on continuing the growth of our operations. We intend to do this by:
• Adding new B737 aircraft to our fleet;
• Keeping our unit costs at levels that rank among the best in the industry;
• Looking for new market opportunities that will satisfy the transportation needs of our customers; and
• Providing our customers with a travel experience worth repeating.
We expect our mix of low fares, excellent customer service, an affordable Business Class product, and one of the youngest all-Boeing
aircraft fleets will provide product value that customers will continue to find attractive.
We will face challenges during 2008. Managing costs and increasing revenues in the face of high fuel costs will continue to be a
primary focus. Jet fuel market prices have recently increased dramatically. For example, the average December market price (before
taxes and fees) of Gulf Coast jet fuel increased to $2.61 per gallon compared to an average 2007 price per gallon of $2.13. If our fuel
prices remain at historic high levels or increase further, we cannot guarantee that we will be able to generate incremental revenues
sufficient to offset fuel costs. Additionally, our 2008 revenues may be adversely impacted by emerging weak macroeconomic
conditions in the United States. The pilots’ collective bargaining agreement became amendable in 2005 and is currently in mediation;
the impact on our operating results of any new collective bargaining agreement is uncertain.
Based on our current outlook, we expect capacity as measured by available seat miles to increase by approximately 10 percent to
11 percent for 2008 compared to 2007. Additionally, we expect our 2008 non-fuel unit operating costs per available seat mile to be flat
to down 1.0 percent compared to 2007. Our estimated all-in fuel costs in the first quarter 2008 will be between $2.85 and $2.90 per
gallon, including the benefit of our fuel risk management program. This assumes $90 barrel crude oil and a $15 refining margin. We
project the 2008 all-in fuel costs, including the benefit of our fuel risk management program, to be between $2.75 and $2.85 per
gallon. Total 2008 fuel consumption is projected to be between 390 million to 400 million gallons.
Air travel tends to be seasonal. The second quarter tends to be our strongest revenue quarter.