AirTran Airways CFO says winter storms cut carrier’s revenue by $5 million to $6 million

Storms reduce AirTran revenue by $5M-$6M

ATLANTA — Discount carrier AirTran Airways saw $5 million to $6 million of revenue evaporate because of the winter storms that pounded parts of the country since the beginning of the year.

Chief Financial Officer Arne Haak provided the figures to investors at a conference Monday in Orlando, Fla., where the airline is based.

He said AirTran, which has a hub in Atlanta, canceled over 1,400 flights over an eight-to-10-week period. That is more than it canceled over an 11-month period last year.

Haak said AirTran’s first-quarter capacity will be up only 6 percent, a lower projection than the 7 percent to 8 percent increase the airline had been expecting. The quarter ends March 31.

For the year, however, he reiterated AirTran’s plans to grow capacity 3 percent to 4 percent.

Other major airlines also were hit hard by the storms, which largely affected the Northeast, mid-Atlantic and parts of the South.

US Airways and Continental Airlines have said the storms cost them a combined $55 million in lost revenue. United Airlines said late Monday that weather-related cancellations last month from the severe storms that affected the East Coast reduced its February revenue by roughly $40 million.

Other airlines, including the U.S.’ two biggest, Delta Air Lines and American Airlines, haven’t released figures yet, though executives from both carriers are scheduled to speak at a Tuesday investor conference.

Haak said at the Raymond James Institutional Investors Conference on Monday that despite the impact from the storms, AirTran has been seeing unit revenue, a key industry metric, improve dramatically.

Unit revenue is the average amount of revenue received by an airline per unit of capacity available for sale. Capacity is measured by multiplying the available seats an airline offers times the miles flown.

Haak said AirTran will continue its plans for modest growth in light of uncertainty about the economy. Asked about the airline’s plans internationally, he said AirTran would consider adding service in Canada if it could be profitable there.

AirTran shares fell 17 cents, or 3.3 percent, to close at $4.96.