AirTran Holdings, Inc., Reports Third Quarter Results

- Record Revenues of $673 Million -

- Record 6.6 Million Customers Served -

- Third Quarter Fuel Costs up More Than $149 Million from 2007 -

ORLANDO, Fla., Oct. 23 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc.,
(NYSE: AAI), the parent company of AirTran Airways, Inc., today reported a net
loss of $107.1 million, or $0.91 per diluted share for the third quarter 2008,
which included non-operating losses related to our fuel hedging program of
$41.5 million, which was comprised of $55.5 million of unrealized losses and
$14.0 million of realized gains. During the same quarter of 2007, AirTran
reported net income of $10.6 million or $0.11 per diluted share. Fuel costs
-- which represented over 50 percent of AirTran's expenses for the quarter and
rose to historically high levels -- contributed significantly to AirTran's
third quarter loss. As of September 30, 2008, AirTran had $318.1 million of
unrestricted cash and investments. In addition, as of September 30, 2008,
AirTran had $84.2 million of restricted cash.

Non-fuel unit costs continued to decline in the third quarter to 5.88 cents
further strengthening AirTran's cost advantage relative to the industry. For
fuel, the average economic cost per gallon increased 63.1 percent to $3.67 as
compared to $2.25 in the third quarter of 2007. Total fuel expense for the
quarter was $363.9 million, up $149.0 million from the prior year.

Revenues for the third quarter grew 10.6 percent to $673.3 million. Third
quarter traffic rose by 9.4 percent on a 3.6 percent increase in capacity,
resulting in an all-time quarterly record load factor of 84.6 percent, a 4.5
point increase over 2007. Unit revenues in the third quarter were up 5.6
percent to 10.21 cents per available seat mile (ASM).

"Although AirTran Airways posted record third quarter revenues, unprecedented
fuel costs were a major challenge for our industry," said Bob Fornaro, AirTran
Airways' chairman, president, and chief executive officer. "While we are
extremely disappointed with our financial performance this quarter, we are
taking dramatic steps to better position the airline competitively and to
restore profitability. These steps include trimming capacity, continuing to
sell B-737s, reducing capital commitments and keeping costs low. Finally, our
first-rate AirTran Airways Crew Members deserve special recognition for
delivering our all-time best third quarter operating performance at 78.6
percent on-time arrivals all while serving record numbers of AirTran
customers."

AirTran reduced capacity in September by nearly 10 percent and our unit
revenue grew over 13 percent despite the travel disruptions caused by an
active tropical storm season in the Southeastern United States and a weakening
economic climate. AirTran is now planning for capacity to be down 6 to 7
percent during the fourth quarter of 2008. In addition, the Company is
currently targeting a 3 to 7 percent capacity reduction in 2009.

Recent management initiatives implemented in the third quarter and
year-to-date include:
-- Reached agreements with our two largest credit card processors on
contract extensions and closed a $150 million collateralized letter of
credit facility in support thereof
-- Extended our marketing partnerships with Barclays Bank Delaware, Inc.,
a
subsidiary of Barclays PLC (LSE: BARC) and with The Hertz Corporation,
a
subsidiary of Hertz Global Holdings, Inc. (NYSE: HTZ).
-- Announced new service to Columbus, Ohio (begins November 6),
Harrisburg,
Pa. (begins November 20), and Cancun, Mexico (begins February 25,
2009)
-- Sold five aircraft through September, and completed agreements to sell
five additional Boeing 737-700 aircraft
-- Average full-time equivalents (FTE) per aircraft improved 6.9 percent
to
55.5
-- Upgraded our A+ Rewards frequent flier program to provide additional
services and benefits for Elite customers, including priority standby
status and Business Class upgrades at the gate

AirTran Holdings, Inc., will conduct a conference call to discuss the
quarter's results today at 10:00 a.m. EDT. A live broadcast of the conference
call will be available via the Internet in the investor relations section at
http://www.airtran.com.

AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI), a Fortune
1,000 company, is ranked number one in the 2008 Airline Quality Rating study.
The airline offers coast-to-coast flights, North America's newest all-Boeing
fleet, friendly service and Business Class and complimentary XM Satellite
Radio on every flight. To book a flight, visit http://www.airtran.com.

Editor's note: Statements regarding the Company's operational and financial
success, business model, expectation about future success, improved
operational performance and our ability to maintain or improve our low costs
are forward-looking statements and are not historical facts. Instead, they are
estimates or projections involving numerous risks or uncertainties, including
but not limited to, consumer demand and acceptance of services offered by the
Company, the Company's ability to maintain current cost levels, fare levels
and actions by competitors, regulatory matters and general economic
conditions. Additional information concerning factors that could cause actual
results to differ materially from those in the forward-looking statements is
contained from time to time in the Company's SEC filings, including but not
limited to the Company's annual report on Form 10-K for the year ended
December 31, 2007. The Company disclaims any obligation or duty to update or
correct any of its forward-looking statements.

Media Contact: Tad Hutcheson
678.254.7442

Investor Relations: Jason Bewley
407.318.5188

AirTran Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share data and statistical summary)
(Unaudited)

Three Months Ended
September 30, Percent
2008 2007 Change
---- ---- ------

Operating Revenues:
Passenger $635,316 $580,558 9.4
Cargo - 1,075 -
Other 37,976 26,922 41.1
------ ------
Total
operating
revenues 673,292 608,555 10.6

Operating
Expenses:
Salaries, wages
and benefits 120,170 118,733 1.2
Aircraft fuel 363,882 214,867 69.4
Aircraft rent 60,489 60,582 (0.2)
Distribution 26,857 23,020 16.7
Maintenance,
materials and
repairs 40,022 40,009 0.0
Landing fees
and other rents 36,196 31,382 15.3
Aircraft insurance
and security
services 5,470 6,228 (12.2)
Marketing and
advertising 9,948 10,238 (2.8)
Depreciation 15,334 13,084 17.2
Gain on sale
of aircraft (10,390) - -
Other operating 51,427 51,946 (1.0)
------ ------
Total operating
expenses 719,405 570,089 26.2
------- -------
Operating Income
(Loss) (46,113) 38,466 -

Other (Income)
Expense:
Interest income (908) (5,517) (83.5)
Interest expense 20,708 20,099 3.0
Capitalized
interest (751) (2,247) (66.6)
Midwest exchange
offer expenses - 10,650 -
Net (gains) losses
on derivative
financial
instruments 41,520 (1,596) -
------ ------
Other (income)
expense, net 60,569 21,389 -
------ ------
Income (Loss)
Before Income
Taxes (106,682) 17,077 -

Income Tax
Expense 405 6,440 (93.7)

--------- -------
Net Income (Loss) $(107,087) $10,637 -
========= =======

Income (Loss) per
Common Share
Basic $(0.91) $0.12 -
Diluted $(0.91) $0.11 -

Weighted-average
Shares Outstanding
Basic 117,177 91,642 27.9
Diluted 117,177 93,114 25.8

EBITDA $(72,299) $42,496 -
EBITDA adjusted* $(27,142) $51,550 -
Operating margin (6.8) percent 6.3 percent (13.1) pts.
Operating margin
adjusted* (8.4) percent 6.3 percent (14.7) pts.
Net margin (15.9) percent 1.7 percent (17.6) pts.
Net margin
adjusted* (9.2) percent 2.7 percent (11.9) pts.

Third Quarter
Statistical
Summary:
Revenue
passengers 6,612,928 6,442,786 2.6
Revenue
passenger
miles (000s) 5,260,949 4,808,682 9.4
Available seat
miles (000s) 6,221,858 6,005,231 3.6
Departures 66,337 67,552 (1.8)
Block hours 141,008 138,872 1.5
Passenger
load factor 84.6 percent 80.1 percent 4.5 pts.
Break-even
load factor 98.7 percent 77.7 percent 21.0 pts.
Average fare $96.07 $90.11 6.6
Average yield
per RPM 12.08 cents 12.07 cents 0.1
Passenger
revenue per ASM 10.21 cents 9.67 cents 5.6
Operating
cost per ASM 11.56 cents 9.49 cents 21.8
Operating
cost per ASM
adjusted* 11.73 cents 9.49 cents 23.6
Non-fuel
operating
cost per ASM 5.71 cents 5.92 cents (3.5)
Non-fuel
operating
cost per
ASM adjusted* 5.88 cents 5.92 cents (0.7)
Average cost
of aircraft
fuel per gallon $3.82 $2.25 69.8
Average
economic cost
of aircraft fuel
per gallon $3.67 $2.25 63.1
Gallons of
fuel burned 95,302,688 95,337,253 (0.0)
Weighted-
average number
of aircraft 141 137 2.9

* Statistical calculations for 2008 and 2007 on an adjusted basis exclude
gains and losses as detailed in the attached Reconciliation of GAAP
Financial Information to Non-GAAP Financial Information.

Nine Months Ended
September 30, Percent
2008 2007 Change
---- ---- ------

Operating Revenues:
Passenger $1,860,379 $1,644,987 13.1
Cargo - 3,133 -
Other 102,684 78,027 31.6
------- ------
Total
operating
revenues 1,963,063 1,726,147 13.7

Operating
Expenses:
Salaries, wages
and benefits 362,469 337,422 7.4
Aircraft fuel 1,000,451 582,535 71.7
Aircraft rent 182,077 182,142 (0.0)
Distribution 77,081 65,823 17.1
Maintenance,
materials and
repairs 124,795 111,733 11.7
Landing fees
and other rents 104,990 90,562 15.9
Aircraft
insurance and
security
services 16,310 17,859 (8.7)
Marketing and
advertising 31,114 31,518 (1.3)
Depreciation 43,224 34,872 24.0
Gain on sale
of aircraft (17,682) (6,234) -
Impairment of
goodwill 8,350 - -
Other operating 156,748 148,648 5.4
------- -------
Total
operating
expenses 2,089,927 1,596,880 30.9
--------- ---------
Operating Income
(Loss) (126,864) 129,267 -

Other (Income)
Expense:
Interest income (5,372) (16,015) (66.5)
Interest
expense 57,890 55,082 5.1
Capitalized
interest (4,863) (7,092) (31.4)
Midwest exchange
offer expenses - 10,650 -
Net (gains)
losses on
derivative
financial
instruments 3,150 (1,440) -
----- ------
Other (income)
expense, net 50,805 41,185 23.4
------ ------
Income (Loss)
Before Income
Taxes (177,669) 88,082 -

Income Tax
Expense
(Benefit) (22,231) 33,228 -

--------- -------
Net Income (Loss) $(155,438) $54,854 -
========= =======

Income (Loss) per
Common Share
Basic $(1.46) $0.60 -
Diluted $(1.46) $0.57 -

Weighted-average
Shares Outstanding
Basic 106,170 91,502 16.0
Diluted 106,170 104,282 1.8

EBITDA $(86,790) $154,929 -
EBITDA adjusted* $(69,581) $157,905 -
Operating margin (6.5) percent 7.5 percent (14.0) pts.
Operating margin
adjusted* (6.9) percent 7.1 percent (14.0) pts.
Net margin (7.9) percent 3.2 percent (11.1) pts.
Net margin
adjusted* (7.0) percent 3.3 percent (10.3) pts.

Nine Month
Statistical
Summary:
Revenue
passengers 18,864,674 17,845,917 5.7
Revenue
passenger
miles (000s) 14,737,024 12,984,173 13.5
Available seat
miles (000s) 18,450,013 16,960,337 8.8
Departures 198,978 195,990 1.5
Block hours 423,068 397,440 6.4
Passenger
load factor 79.9 percent 76.6 percent 3.3 pts.
Break-even
load factor 87.5 percent 72.5 percent 15.0 pts.
Average fare $98.62 $92.18 7.0
Average yield
per RPM 12.62 cents 12.67 cents (0.4)
Passenger
revenue per ASM 10.08 cents 9.70 cents 3.9
Operating
cost per ASM 11.33 cents 9.42 cents 20.3
Operating
cost per ASM
adjusted* 11.38 cents 9.45 cents 20.4
Non-fuel
operating
cost per ASM 5.91 cents 5.98 cents (1.2)
Non-fuel
operating
cost per
ASM adjusted* 5.96 cents 6.02 cents (1.0)
Average cost
of aircraft
fuel per gallon $3.53 $2.16 63.4
Average
economic cost
of aircraft fuel
per gallon $3.45 $2.16 59.7
Gallons of
fuel burned 283,169,039 269,451,311 5.1
Weighted-
average number
of aircraft 140 133 5.3

* Statistical calculations for 2008 and 2007 on an adjusted basis exclude
gains and losses as detailed in the attached Reconciliation of GAAP
Financial Information to Non-GAAP Financial Information.

Reconciliation of GAAP Financial Information to Non-GAAP
Financial Information

Three Months and Nine Months Ended September 30, 2008 and 2007

We prepare our financial statements in accordance with generally accepted
accounting principles (GAAP). Within our press release, we make reference to
certain non-GAAP financial measures including EBITDA, EBITDA adjusted,
operating margin adjusted, and net margin. Earnings before income taxes,
interest, depreciation and amortization ("EBITDA") is a supplemental non-GAAP
financial measure used by management, as well as industry analysts, to
evaluate operations and operating performance. We are also presenting EBITDA
because it is used by some industry analysts and investors as a way to assess
a company's ability to incur and service debt, make capital expenditures and
meet working capital requirements. Our disclosures may also exclude special or
non-recurring items that we believe should be taken into consideration to more
accurately measure and monitor our operating performance. Our disclosure of
non-fuel operating cost per available seat mile (non-fuel CASM) is consistent
with financial measures reported by other airlines and analysts. We believe
that non-fuel CASM and non-fuel CASM adjusted provide a better understanding
of our operations. Both the cost and availability of fuel are subject to many
economic and political factors and are therefore beyond our control. Our press
release also contains information regarding the components of GAAP fuel
expense and net gains and losses on derivative financial instruments. These
amounts have been included as supplemental information.

We disclose both the average fuel cost per gallon and the average economic
fuel cost per gallon. Average fuel cost per gallon is based on fuel expense as
measured by GAAP and includes realized gains and losses on fuel related
derivatives instruments which are accounted for as hedges. Average economic
fuel cost per gallon includes realized gains and losses on all fuel related
derivative instruments, including those which were not accounted for as
hedges, but does not include unrealized gains and losses recognized under
GAAP.

We consider our fuel derivative contracts an important tool in managing costs
related to jet fuel purchases. We believe it is important to assess our
financial performances by including the effect of the quarterly net cash
settlements and excluding the mark-to-market adjustments for our unrealized
gains and losses recorded in the income statement for contracts settling in
future periods.

We believe that these measures represent important internal measures of
performance. Accordingly, where these non-GAAP measures are provided, it is
done so that investors have the same financial data that management uses in
evaluating performance with the belief that it will assist the investment
community in assessing our underlying performance on a year-over-year and a
quarter-over-quarter basis. However, because these measures are not determined
in accordance with accounting principles generally accepted in the United
States, such measures are susceptible to varying calculations and not all
companies calculate the measures in the same manner. As a result the
aforementioned measures as presented may not be directly comparable to
similarly titled measures presented by other companies. The non-GAAP measures
are presented as supplemental information and not as alternatives to any GAAP
measurements.

Dollars in thousands,
unless otherwise noted
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2008 2007 2008 2007
---- ---- ---- ----

The following table
provides further detail
of the components of
nonoperating net (gains)
losses on derivative
financial instruments:
Unrealized (gains)
losses on derivative
financial instruments $55,547 $(1,596) $26,541 $(1,440)
Plus:
Realized (gains)
losses on derivatives
that do not qualify
for hedge accounting,
recorded in net
(gains) losses on
derivative financial
instruments (14,027) - (23,391) -
-------- --- -------- ---
Net (gains) losses on
derivative financial
instruments $41,520 $(1,596) $3,150 $(1,440)
======= ======== ====== ========
The following table
reconciles net
income (loss)
to EBITDA and
EBITDA adjusted:
Net income (loss) $(107,087) $10,637 $(155,438) $54,854
Add back:
Income tax
expense
(benefit) 405 6,440 (22,231) 33,228
Interest, net 19,049 12,335 47,655 31,975
Depreciation 15,334 13,084 43,224 34,872
------ ------ ------ ------
EBITDA $(72,299) $42,496 $(86,790) $154,929
Less:
Gain on
aircraft sale 10,390 - 17,682 6,234
Impairment of
goodwill - - (8,350) -
Midwest
exchange
offer expenses - (10,650) - (10,650)
Unrealized
gains (losses)
on derivative
financial
instruments (55,547) 1,596 (26,541) 1,440
------- ----- ------- -----
EBITDA
adjusted $(27,142) $51,550 $(69,581) $157,905
======== ======= ======== ========

The following table
calculates operating
margin adjusted:
Operating income
(loss) $(46,113) $38,466 $(126,864) $129,267
Less:
Gain on
aircraft sale 10,390 - 17,682 6,234
Impairment of
goodwill - - (8,350) -
--- --- ------ ---
Operating income
(loss) adjusted $(56,503) $38,466 $(136,196) $123,033
======== ======= ========= ========
Total operating
revenues $673,292 $608,555 $1,963,063 $1,726,147
-------- -------- ---------- ----------
Operating margin
adjusted -8.4% 6.3% -6.9% 7.1%
==== === ==== ===

The following table
calculates net
margin
adjusted:
Net income (loss) $(107,087) $10,637 $(155,438) $54,854
Less:
Gain on
Aircraft sale,
after tax 10,390 - 17,682 3,896
Impairment of
goodwill - - (8,350) -
Midwest
exchange
offer expenses - (6,656) - (6,656)
Unrealized
gains (losses)
on derivative
financial
instruments ,
after tax (55,547) 998 (26,541) 900
------- --- ------- ---
Net income (loss),
adjusted $(61,930) $16,295 $(138,229) $56,714
======== ======= ========= =======
Total operating
revenues $673,292 $608,555 $1,963,063 $1,726,147
-------- -------- ---------- ----------
Net margin
adjusted -9.2% 2.7% -7.0% 3.3%
==== === ==== ===

The following
table calculates
operating costs
per ASM adjusted:
Total operating
expenses $719,405 $570,089 $2,089,927 $1,596,880
Add: gain on sale
of aircraft 10,390 - 17,682 6,234
Less: impairment
of goodwill - - (8,350) -
--- --- ------ ---
Operating costs,
adjusted $729,795 $570,089 $2,099,259 1,603,114
======== ======== ========== =========
ASMs (000) 6,221,858 6,005,231 18,450,013 16,960,337
--------- --------- ---------- ----------
Operating cost
per ASM (cents)
adjusted 11.73 9.49 11.38 9.45
===== ==== ===== ====

The following
table calculates
non-fuel operating cost
per ASM and non-fuel
operating costs
per ASM adjusted:
Total operating
expenses $719,405 $570,089 $2,089,927 $1,596,880
Less: aircraft
fuel (363,882) (214,867) (1,000,451) (582,535)
------- ------- --------- -------
Operating costs,
adjusted $355,523 $355,222 $1,089,476 $1,014,345
======== ======== ========== ==========
ASMs (000) 6,221,858 6,005,231 18,450,013 16,960,337
Non-fuel
operating
cost per ASM
(cents) 5.71 5.92 5.91 5.98
==== ==== ==== ====

Total operating
expenses $719,405 $570,089 $2,089,927 $1,596,880
Less: aircraft fuel (363,882) (214,867) (1,000,451) (582,535)
Add: gain on sale
of aircraft 10,390 - 17,682 6,234
Less: impairment
of goodwill - - (8,350) -
--- --- ------ ---
Non-fuel operating
cost, adjusted $365,913 $355,222 $1,098,808 $1,020,579
======== ======== ========== ==========
ASMs (000) 6,221,858 6,005,231 18,450,013 16,960,337
Non-fuel
operating
cost per ASM
(cents)
adjusted 5.88 5.92 5.96 6.02
==== ==== ==== ====

The following table
provides detail of
certain components of
aircraft fuel expense
and calculates average
economic cost of
aircraft fuel per
gallon:
Aircraft fuel-
including taxes
and into-plane costs
and excluding gains
(losses) on fuel
derivative
financial
instruments $365,797 $214,867 $1,013,855 $582,535
Realized gains
(losses) on
derivatives that
qualify for hedge
accounting 1,915 - 13,404 -
----- --- ------ ---
Aircraft fuel
expense per GAAP $363,882 $214,867 $1,000,451 $582,535
Realized gains
(losses) on
derivatives
that do not
qualify for
hedge accounting,
recorded in
net gains
(losses) on
derivatives $14,027 23,391
------- ------
Economic fuel
expense $349,855 $977,060
======== ========== ======== ===========
Gallons of fuel
burned 95,302,688 95,337,253 283,169,039 269,451,311
---------- ---------- ----------- -----------
Economic fuel
expense per
gallon
(dollars) $3.67 $2.25 $3.45 $2.16
===== ===== ===== =====

SOURCE AirTran Holdings, Inc.

Media, Tad Hutcheson, +1-678-254-7442, or Investors, Jason Bewley,
+1-407-318-5188, both of AirTran Holdings