Frontier predicts wider loss than forecast.

[stillflyn]

Frontier predicts wider loss than forecast
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DENVER (AP) — Frontier Airlines on Tuesday warned it would post a wider-than-expected loss in the third quarter because of storm-related expenses in December and fewer passengers on some routes to sunny destinations.
It was the second time in the past month that Frontier has revised its forecast for the October-December quarter. It predicted a pretax loss ranging between 78 cents and 88 cents a share excluding special items. That compared with Dec. 5 guidance of a pretax loss of 58 cents to 68 cents per share excluding special items.

RELATED NEWS: Southwest to grow in Denver
"We are further revising the guidance we provided at the beginning of December because of higher-than-expected operating expenses related to the winter storms at our Denver hub and throughout the Midwest in late December," Sean Menke, Frontier's chief executive officer, said in a statement.

He also noted traffic was weaker than anticipated on some non-Denver routes to sunny destinations such as Memphis-to-Orlando. The airline previously announced it will eliminate those routes as of Thursday.

FIND MORE STORIES IN: Tuesday | Denver | Southwest | December | Frontier Airlines | Denver International Airport
Frontier's stock fell 20 cents, or 4.1%, to close at $4.65 a share in Tuesday trading.

The carrier revised its guidance as it reported a 31.7% increase in revenue passenger miles for December, to 798.8 million from 606.7 million in December 2006.

Its occupancy rate increased to 72.6% from 68.2%. Mainline passenger revenue per available seat mile rose 8.1% to 8.39 cents from 7.76 cents in December 2006.

Frontier has been battered by skyrocketing fuel prices and aggressive competition at Denver International Airport, where it competes against United Airlines and Southwest. The competition has proven to benefit consumers with lower ticket prices and more choices.

The forecast came as rival Southwest Airlines Co. scheduled a Wednesday news conference where it is expected to announce an expanded flight schedule in Denver. A spokeswoman for Dallas-based Southwest declined comment until then.

Southwest has called Denver one of its fastest-growing cities, where it operates 56 daily flights to 16 cities, up from 13 flights to three locations when it re-entered the market in January 2006.

 

[Sedona16]

This really stinks as I have some good friends over at Frontier and it has been a class operation save its up and down management moves. Hate to say it but unless Frontier gets rescued by a merger or cash infusion I don't see them around in 18 months. SWA smells blood and is all too happy to move the cattle wagons in.

 

[waveflyer]

It only sucks b/c we have an insane seniority system that makes all of their pilots start completely over if they liquidate....

They're on par w/ every kid 3 years into their regional- it's just dumb- and it takes leverage away from ALL of us

 

[Beechnut]

Alright, I'll bite.

Why should a pilot who devoted 11 years to his company while I devoted 10 years to my company be able to come over here when his company fails and be senior to me?

I know one list would never happen (thank goodness) but I just don't understand why people even talk about it.

S.

 

[jonjuan]

It only sucks b/c we have an insane seniority system that makes all of their pilots start completely over if they liquidate....

They're on par w/ every kid 3 years into their regional- it's just dumb- and it takes leverage away from ALL of us

Why should a 20 year military pilot have to start at the bottom of the list, behind some 28 year old kid 1 year into their major? Insane, indeed.

 

[Sedona16]

Alright, I'll bite.

Why should a pilot who devoted 11 years to his company while I devoted 10 years to my company be able to come over here when his company fails and be senior to me?

I know one list would never happen (thank goodness) but I just don't understand why people even talk about it.

S.

It has more to do with collective bargaining and keeping wages, work rules high across the board than it does with some guy stepping in above you. This job has gone to hell in a hand basket in recent years. If pilots could draw a line in the sand and say we across the board wont go lower than such and such, maintains some sort of sanity to the work rules and profession. The remaining scab like appendages of the industry (ie guys at Skywest (65%) who chose not to vote on a union and undercut the industry on pay....see 99 seats for 50 seat pay) would need to be blocked from the list perminently and publicly broadcast named for the cancer producing infection they are. There would be no guarentees but a national seniority list would have stood a much better chance of maintaining the profession than what we have here today. Remember, currently a pilot who sticks his and his families neck out for the good of the profession can get his head lobbed off and have to start at the very bottom. This is not true in many other industries that are not seniority based. Management takes advantage of this fact.

 

[Sedona16]

Why should a 20 year military pilot have to start at the bottom of the list, behind some 28 year old kid 1 year into their major? Insane, indeed.

Points given for years of military service adjusted for military retirement is one idea.

 

[Tanker Clown]

Why should a 20 year military pilot have to start at the bottom of the list, behind some 28 year old kid 1 year into their major? Insane, indeed.

Totally agree. If I have to take a job at Delta, shouldn't gereral lee be junior to me...but then again, shouldn't that guy be junior to everyone?

 

[Beechnut]

What kind of points would a civilian guy get for time spent in flying Cargo, Corporate or any other job they took while getting to a major?

This is the dumbest thread I've ever been apart of.

S.

 

[Sedona16]

What kind of points would a civilian guy get for time spent in flying Cargo, Corporate or any other job they took while getting to a major?

This is the dumbest thread I've ever been apart of.

S.

Why not add a couple of the most overused cliches in your post while you are at it:

"I just waisted two minutes of my life that I will never get back" AND "I just threw up in my mouth a little".

Bottom line you dont have to worry...the chance for national seniority is zero percent. Besides its better to bitch and complain than think about how to improve this profession in a collective way.

 

[jonjuan]

It has more to do with collective bargaining and keeping wages, work rules high across the board than it does with some guy stepping in above you. This job has gone to hell in a hand basket in recent years. If pilots could draw a line in the sand and say we across the board wont go lower than such and such, maintains some sort of sanity to the work rules and profession. The remaining scab like appendages of the industry (ie guys at Skywest (65%) who chose not to vote on a union and undercut the industry on pay....see 99 seats for 50 seat pay) would need to be blocked from the list perminently and publicly broadcast named for the cancer producing infection they are. There would be no guarentees but a national seniority list would have stood a much better chance of maintaining the profession than what we have here today. Remember, currently a pilot who sticks his and his families neck out for the good of the profession can get his head lobbed off and have to start at the very bottom. This is not true in many other industries that are not seniority based. Management takes advantage of this fact.

What about the pilot who went to work for Frontier knowing they are very aggressive in pricing and in part, thrived on under-cutting and taking business from the more established, albeit, more expensive legacy carriers? "Yeah, but all they were doing was sticking their necks out for themselves and their families."

 

[PCL_128]

It only sucks b/c we have an insane seniority system that makes all of their pilots start completely over if they liquidate....

They're on par w/ every kid 3 years into their regional- it's just dumb- and it takes leverage away from ALL of us

Still stuck on that unworkable idea, huh?

 

[bugchaser]

Why should a 20 year military pilot have to start at the bottom of the list, behind some 28 year old kid 1 year into their major? Insane, indeed.

Thats a joke, right?

 

[Tanker Clown]

Thats a joke, right?

If you have to ask then I have a piece of real estate near a toxic waste dump to sell you. Toxic waste is the wave of the future. Get in on the ground floor.

 

[Sedona16]

What about the pilot who went to work for Frontier knowing they are very aggressive in pricing and in part, thrived on under-cutting and taking business from the more established, albeit, more expensive legacy carriers? "Yeah, but all they were doing was sticking their necks out for themselves and their families."

If you want to frame it that way to make a point then go ahead but dont try to make it seem like I was defending Frontier as a low cost carrier. I have friends there I feel bad for. I dont like the fact that SWA is doing to them what they have done to many legacies across the years. I would have prefered a national list in the fourties and no such thing as a LCC.