Airtran 2008 Annual Report Download - page 37

The price of our common stock may fluctuate significantly as a result of many factors in addition to the factors
discussed in these risk factors. These factors, some or all of which are beyond our control, include:
• actual or anticipated fluctuations in our operating results;
• changes in expectations as to our future financial performance or changes in financial estimates
of securities analysts;
• success of our operating, growth and high priced fuel strategies;
• investor anticipation of competitive and industry threats, whether or not warranted by actual events;
• operating and stock price performance of other comparable companies or companies investors may
deem comparable to us;
• news reports relating to trends in our industry or general economic conditions; and
• realization of any of the risks described in these risk factors.
In addition, the stock market can experience extreme volatility that often may be unrelated or disproportionate
to the operating performance of particular companies. These broad market and industry fluctuations may
adversely affect the trading price of our common stock, regardless of our actual operating performance. Because
the Notes are convertible into shares of our common stock, volatility or depressed prices of our common stock
could have a similar effect on the trading price of our Notes. Holders who receive common stock upon
conversion also will be subject to the risk of volatility and depressed prices of our common stock. Also, the
existence of the Notes may encourage short selling in our common stock by market participants because the
conversion of the Notes could depress the price of our common stock. In addition, the issuance of the Notes
could have a dilutive effect on our earnings per share in the future.
If our stock price fluctuates, purchasers of our common stock could incur substantial losses.
The market price of our common stock may fluctuate significantly in response to factors that are beyond our
control. The stock market in general has recently experienced extreme price and volume fluctuations. The
market prices of securities of airline companies have been extremely volatile, and may reflect fluctuations that
are unrelated or disproportionate to the operating performance of these companies. These broad market
fluctuations could result in extreme fluctuations in the price of our common stock, which could cause
purchasers of our common stock to incur substantial losses.
Investors in our common stock may experience future dilution.
In order to raise additional capital, we may in the future offer additional shares of our common stock or other
securities convertible into or exchangeable for, our common stock in transactions that may be dilutive to
existing holders of our common stock. The holders of our 7% Notes have certain redemption rights which
become exercisable in 2010. We may elect to exercise rights to pay the redemption price of our 7% Notes in
shares of our common stock which could result in the issuance of a significant number of additional shares. The
conversion ratio of our 5.5% Notes is subject to increase in connection with a Make Whole Fundamental
Change as defined in the indenture governing such notes. In connection with our Letter of Credit and Revolving
Line of Credit Facility, we issued warrants to purchase approximately 4.7 million shares of our common stock
for $4.49 per share. The number of shares issuable pursuant to such warrants as well as the shares of common
stock issuable upon a conversion of our Notes are subject to adjustments for certain dilutive events as defined in
the warrant agreement and the respective Notes indentures. The issuance and sale of shares pursuant to our
warrants and Notes may result in substantial dilution to the proportionate equity interest and voting power of
29