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Midwest Withdraws Year Forecast, Cites Price Weakness

Midwest Air Group, which is trying to fend off a hostile takeover offer from AirTran Holdings, on Tuesday said its second-quarter earnings will fall short of analyst expectations and may be lower than a year ago because of weak fares.

Midwest , which has spent more than $2.6 million on fending off AirTran , said the expected earnings shortfall is primarily due to industrywide pricing weakness, which may continue for some time.

Wall Street analysts had expected Midwest to post second-quarter earnings of 67 cents per share, according to Reuters Estimates. Last year, Midwest earned 39 cents per share.

The pricing weakness will likely affect full-year earnings, but Midwest said it was unable to determine the impact and therefore suspended previous earnings forecasts.

The second quarter, boosted by summer vacation travel, is traditionally one of the strongest periods for the U.S. airline industry.