Frontier Airlines posts record profit fot December

pilotgolfer

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I think what he was pointing out is that they sold 4 airplanes in December. What would the quarterly numbers have looked like had it not been propped up by the cash from those planes sold.

What does an Airbus sell for in today's market?
 

Whine Lover

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Precisely.

The last line of the article was: "The company sold four planes in the quarter."

Cost of an Airbus - A319: $63.3 to $77.3m ( from Wikipedia )

Of course we don't know if the aircraft were leased and sold, or owned and sold. Big difference there.

But, even if they were just leased, figure about $250,000/mo in lease payments per aircraft. Or, a million or more a month in cost savings by losing the lease payments/operating costs for 4 aircraft.

Basically, I have no idea what I am talking about...But, that last line says a lot without saying anything really.



YKMKR
 
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PRINCE AKEEM

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Rode on Frontier for the 1st time last weekend, nice airline...
 

Larcifer

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I'll believe in profits when and if we emerge from BK. Until then it is all "blue smoke and mirrors":)
 

GuppyWN

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Any details differentiating between actual profit and operating profit?

At any rate well done. Hopefully one of many more to come.

Gup
 

ultrarunner

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Any details differentiating between actual profit and operating profit?

At any rate well done. Hopefully one of many more to come.

Gup
I thought the same thing Gup. They did come clean indicating the "special gains".

But without a conventional SEC report, it's unlikely we'll know the specific gain from aircraft sales and the specific loss due to the fuel hedges.
 

CFI

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Company Reports Record Profit for the Month of December and the first December Quarterly Profit in Five Years
DENVER, Jan. 28 /PRNewswire-FirstCall/ -- Frontier Airlines Holdings, Inc. (OTC Bulletin Board: FRNTQ - News) today filed its Monthly Operating Report for December 2008. Frontier reported a consolidated operating profit of $18.9 million and a net profit of $18.7 million for the month. Excluding special items, the Company reported an operating profit of $18.3 million and a net profit of $17.0 million. The Company, excluding special items, reported an operating margin of 16.8 percent and a total net margin of 15.5 percent for the month.

Special items for the month included:


Non-cash mark-to-market gains on fuel hedge contracts of $0.6 million
Net gain of $1.4 million in reorganization expense, due to the sale of two A319 aircraft sold in the month for a book gain of $4.1 million, which was offset by other reorganization expenses of $2.7 million
Loss on early extinguishment of debt of $0.3 million
When combining the Operating Reports for each of the months comprising the December quarter, the Company reported a consolidated operating profit of $5.6 million and a net profit of $1.1 million. Excluding special items, the Company reported an operating profit of $14.4 million and a net profit of $7.7 million for the quarter.

Special items for the quarter included:


Non-cash mark-to-market losses on fuel hedge contracts of $8.7 million
Charges of $0.4 million on early extinguishment of debt
Gain of $2.7 million in reorganization activities, including $8.1 million on the sale of four A319 aircraft and expenses of $5.4 million
Frontier's cash position increased to $69.1 million for the period ending December 2008. The Company realized net proceeds of $25.5 million from the sale of two aircraft, which was offset by a decrease in working capital due to the traditionally low booking period at the end of the year.

"These outstanding results are a testament to the sacrifices and hard work put forth by all of our employees," said Frontier President and CEO Sean Menke. "We have worked extremely hard throughout our restructuring to achieve these results that are bucking industry trends. Despite significant competitive pressure and a rapidly changing macro-economic environment, we have been able to reduce our operating expenses, increase revenues and maintain our high quality of service."

Financial and restructuring highlights during the quarter:


For the quarter, mainline unit costs excluding fuel, decreased 4.2 percent to 6.20 cents, despite a 16.0 percent reduction in mainline capacity, an 8.0 percent reduction in stage length and an average fleet utilization decrease of 7.2 percent
For the quarter year-over-year, mainline passenger unit revenue increased by 7.2 percent, and total mainline unit revenue increased by 10.2 percent
Load factor for the quarter improved 3.9 points versus the prior year period
Negotiated and secured long-term concessionary agreements with all represented labor groups
Successfully launched AirFairs, an innovative, customer-friendly fare structure that lets customers choose from one of three fare levels that best meets their specific travel needs
Sold four A319 aircraft, adding significant liquidity to the Company
Among the industry leaders in key DOT performance metrics
Companies in Chapter 11 bankruptcy protection are required to file monthly operating reports to the U.S. Trustee in addition to quarterly reports filed with the U.S. Securities and Exchange Commission.

A copy of the Monthly Operating Report is available at:

FrontierAirlines.com/frontier/who-we-are/investor-rel ations/annual-reports-sec-filings.do
 

ultrarunner

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Thanks for the post CFI. Looks like they made a few bucks from operations.
 

Bavarian Chef

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They made money. Huh.

Did any paycuts factor into that?
 

nosoupforyou!

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Doesn't Frontier charge for the TV?
It's been awhile since I rode on Frontier but I remember the cheesy strategy they used with TV.

You get to watch it on boarding, taxi, takeoff to 10,000' for free (the hook is set) then the screen goes blank and says "If you would like to continue enjoying your show, please swipe your credit card for a 5 dollar charge......."

Sorta like the old public toilets in the 70's that had coin slots on them!
 

Whine Lover

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On the very important subject of the free TV...

Yes , it is free on the ground. Now, on my particular flight we had about an hour delay due to weather.

Antsy whining kids? Griping Pax anxious to get going bothering the F/A's every 5 seconds?

NOPE. The free Electronic Baby-Sitter took over and we all sat there in that mindless television trance watching our favorite programs for an hour or so.

Perfect.

Yes, you do have to pay when you get airborne. But if I recall there are still a few channels that remain free even then. (?)

Now mind you, I am the cheapest bastard on the planet...but, I was going on vacation and was about to pony up $5.00 for a delicious cocktail when the thought struck me:

- Hell, this cocktail will entertain me for about 10 minutes and would cost me $5.00 anywhere.

A $5.00 Movie, on the other hand, will entertain me for the entire flight and, being a first run movie still in the theatres, would cost me about 8 bucks anywhere else.

Command decision made: Movie for two hours, at a bargain price.

Thank you for reading another 2 minutes of useless FI drivel.

Please return to your regularly scheduled lives....


YKMKR
 
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