AirTran Airways surprised analysts Wednesday by reporting a $78.4 million second-quarter profit, reversing a $14.8 million loss in the same quarter last year. Operating revenue was down 13%, but capacity reductions and other cost-cutting steps pushed operating expenses down by 27%. "The combination of reduced capacity, lower fuel prices and the lowest cost structure of any major airline allows us to compete effectively," said CFO Arne Haak in a statement.

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