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AirTran blames fuel costs for loss

Eagle staff and news services

AirTran Holdings Inc., which operates flights between Wichita and Atlanta, reported a first-quarter loss of $34.8 million after fuel costs rose to a record.

The net loss was 38 cents a share, compared with a profit of $2.16 million, or 2 cents, a year earlier, the Florida-based company said. The per-share loss was wider than analysts expected, sending shares down 21 percent in New York trading.

AirTran and other U.S. carriers have struggled as jet fuel prices soared in the past year, surpassing labor as the biggest expense for many. Increased fares and surcharges haven't kept pace, and AirTran said it will suspend capacity growth "at least through 2009" because of expenses and a slowing economy.

"Despite record revenues, record-high fuel costs remain a tremendous challenge for all airlines," chief executive Bob Fornaro said in a statement.

Sales increased 18 percent to $566.4 million from $478.6 million.

AirTran's fuel bill jumped 62 percent in the quarter to $268 million.

AirTran said it will freeze the size of its fleet of 141 airplanes for 2008 and 2009, scrapping earlier plans to add 14 jets next year. The company may take delivery of a few new Boeing planes, while selling older ones to keep the total fleet number static, Kevin Healy, senior vice president of planning, said.

Boeing Co.

Boeing said Tuesday it received an order for eight jetliners from Biman Bangladesh Airlines as the carrier expands its services.

Biman Bangladesh ordered four 777-300ER planes and four 787-8 Dreamliners, Boeing said. The airline also has purchase rights for four 777s and four 787s.

UMB Financial

The holding company of UMB Bank said Tuesday that first quarter 2008 earnings increased $15 million.

Kansas City, Mo.-based UMB said earnings for the quarter were $32.4 million compared with $17.3 million in the same quarter a year ago.

The company said it also had record loan balances of $4.1 billion and decreases in nonperforming loans and net charge-offs.