US carrier AirTran posted better-than-expected quarterly results Wednesday, citing improving revenue trends aided in part by returning business passengers.
AirTran swung to a profit against a year-earlier loss, and also said it expected unit revenue to improve in February and March after dipping in January. The low-cost carrier also said business markets were trending positive.
Net income was USD$17.1 million for the fourth quarter, compared with a loss of USD$121.6 million a year earlier.
Capacity, measured in available seat miles, was up 8.1 percent, while traffic, measured by revenue passenger miles, rose 6.9 percent.
The start of an uptick in business travel points to a better outlook for major US carriers, which have cut jobs and reduced capacity in the past two years as the recession battered demand for flying.
US airlines raised cash in 2009 and now have lower cost structures, said Morningstar analyst Basili Alukos. "In that respect, they are all set up for recovery."
"We think the meetings and convention sector, which was really hit hard last year, will recover as well," AirTran CEO Bob Fornaro said.
Still, recovery will take its time. The International Air Transport Association said Wednesday that aviation would face a tough 2010 making up for lost demand in 2009 and handling new security concerns.
"This is not going to be a quick rebound," Fornaro said. "The rebound doesn't happen in one fell swoop; it happens over a couple of years."
