AirTran to report annual loss for first time since 1999

AirTran Airways expects to report its first annual loss since 1999, chief financial officer Arne Haak said during a presentation at an investor conference Tuesday.

“For AirTran, I think it’s been particularly hard for us to get through this,” Haak said at Imperial Capital’s Global Opportunities Conference in New York.

AirTran has been selling planes, postponing new aircraft deliveries and cutting flight capacity since earlier this year in the midst of high fuel costs.

Now, “in terms of the challenges the industry faces, they’ve really changed,” Haak said. It’s unclear how much demand for travel will slow due to the weak economy.

“Hopefully we’re about six months in front of this problem compared to other industries,” Haak said. AirTran has switched from plans to grow 10 percent this year to cutting capacity by 5 to 6 percent. The airline said it is focusing on protecting its low cost advantage rather than continuing its rapid growth, he said.

Haak said he believes travelers trying to save money and businesses reducing their travel expenditures “naturally come to low-cost airlines.”