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UPDATE 3-ATA posts wider loss, seeks to postpone pay rises
(Recasts, adds details, analyst quote, CEO quote, stock price)
By Jui Chakravorty
NEW YORK (Reuters) - ATA Holdings Corp. which narrowly averted bankruptcy earlier this year by restructuring debt with bondholders, Friday posted a much wider quarterly loss on a charge related to the debt exchange.
The parent of low-cost carrier ATA, the No. 10 U.S. airline, also said it has asked pilots and flight attendants to postpone scheduled pay raises for 2004 and 2005. The airline has been struggling with rising fuel prices amid stiff competition, particularly on its east-west routes.
Indianapolis-based ATA Holdings posted a net loss of $64.7 million, or $5.47 per share, compared with a loss of $11.4 million, or 97 cents per share, in the same quarter a year earlier.
Results included a $27 million charge related to the bond exchange restructurings. The discount carrier in February closed a deal with bondholders that allowed it to exchange new notes and cash for $300 million of old debt.
In a conference call with analysts on Friday, ATA Chief Executive George Mikelsons said the airline will become the first low-cost carrier to launch scheduled transatlantic service. The carrier, which has flown chartered flights to Europe for 20 years, plans to start scheduled service there in 2005. "Yields on international flying are significantly better than the domestic market," Mikelsons said.
Rest of the story availible at http://stocks.usatoday.com/custom/us...3B8CE0A4943%7D
Interesting i think, I was unaware they posted a loss.
(Recasts, adds details, analyst quote, CEO quote, stock price)
By Jui Chakravorty
NEW YORK (Reuters) - ATA Holdings Corp. which narrowly averted bankruptcy earlier this year by restructuring debt with bondholders, Friday posted a much wider quarterly loss on a charge related to the debt exchange.
The parent of low-cost carrier ATA, the No. 10 U.S. airline, also said it has asked pilots and flight attendants to postpone scheduled pay raises for 2004 and 2005. The airline has been struggling with rising fuel prices amid stiff competition, particularly on its east-west routes.
Indianapolis-based ATA Holdings posted a net loss of $64.7 million, or $5.47 per share, compared with a loss of $11.4 million, or 97 cents per share, in the same quarter a year earlier.
Results included a $27 million charge related to the bond exchange restructurings. The discount carrier in February closed a deal with bondholders that allowed it to exchange new notes and cash for $300 million of old debt.
In a conference call with analysts on Friday, ATA Chief Executive George Mikelsons said the airline will become the first low-cost carrier to launch scheduled transatlantic service. The carrier, which has flown chartered flights to Europe for 20 years, plans to start scheduled service there in 2005. "Yields on international flying are significantly better than the domestic market," Mikelsons said.
Rest of the story availible at http://stocks.usatoday.com/custom/us...3B8CE0A4943%7D
Interesting i think, I was unaware they posted a loss.
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