Fuel prices at 'historic high levels' overloading expense for AirTran

A year ago Saturday, AirTran Airways Inc. landed in Charleston hauling a load of cheap tickets.

The Atlanta-hubbed carrier stuck a pin in the Holy City's ever-swelling airfares, squeezing almost a quarter off the average Charleston plane ticket by the end of 2007. No other airport in the country saw such a precipitous price drop in that time, according to federal statistics.

Not surprisingly, AirTran has wrested 9 percent of Charleston's commercial traffic from incumbent carriers, flying almost 110,500 passengers in and out of CHS by the end of last month. But sadly, if AirTran executives were making a decision on Charleston today, they might schedule it for a family vacation but not a new destination.

The airline put up some great numbers in its most recent quarter. It flew 13 percent more passengers from January through March than in the first quarter of 2007. Its planes were 7 percent more full, and it ticked up its average one-way fare 5 percent, to a whopping $99.

The only problem is, AirTran still lost $34.8 million, swinging from a $12.9 million profit in the first quarter of 2007.

The pain, of course, is at the pump. The airline paid, on average, $3 a gallon for its fuel, up from $2 a year earlier. At $268 million, AirTran's gas bill comprised 43 percent of its expenses, up from 34 percent in the year-earlier period. We all grapple with gas prices, but imagine if almost half of every dollar you made went into your fuel tank.

In a filing with the Securities and Exchange Commission, the airline used some particularly somber language: "If our fuel prices remain at historic high levels or increase further, we cannot offer assurance that we will be able to generate additional revenues which will be sufficient to offset fuel costs."

The carrier is tightening its belt, of course. It scrapped plans to boost capacity 10 percent this year, pledged not to order any more planes and is planning to flip or lease those that are due for delivery. AirTran also said it will keep a watchful eye out for "nonproductive" routes.

Let's hope Charleston doesn't fall into that category.

Speaking of gas prices ...

The Travel Industry Association trotted out a survey last week showing that six out of 10 Americans planning a road trip this summer will not change their itinerary because of surging gas prices.

"The data confirm, once again, that vacations are a non-negotiable part of contemporary life, even in challenging economic times," Peter Yesawich, the lead researcher, wrote in a statement.

Yesawich seemed to gloss over the fact that four out of 10 folks surveyed will, in fact, change their plans. If Charleston loses 40 percent of its drive-in visitors in the next few months, it will be a long, sweaty summer for anyone in the local tourism business.

Reach Kyle Stock at 937-5763 or kstock@postandcourier.com.