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Frontier Reports Fifth Consecutive Monthly Operating Profit

climb2slow

F9 busboy
Joined
Oct 30, 2004
Posts
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Total Time
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Frontier Airlines Reports Fifth Consecutive Monthly Operating Profit





Excluding Special Items, Company Also Reports Net Profit for Second Successive Quarter

DENVER, April 28 /PRNewswire-FirstCall/ -- Frontier Airlines Holdings, Inc. (Pink Sheets: FRNTQ) today reported its fifth consecutive monthly operating profit and, excluding special items, its second successive quarterly net profit. The results were filed in the Company's unaudited Monthly Operating Report for March 2009.

For the month of March, Frontier reported a consolidated operating profit of $20.7 million and a total consolidated net loss of $129.9 million. Excluding special items, the Company reported an operating profit of $16.7 million and a net profit of $15.2 million for the month.

Frontier also reported a consolidated operating profit of $25.1 million and a net loss of $161.0 million for the March quarter. Excluding special items, the Company reported an operating profit of $13.7 million and a net profit of $7.5 million for the quarter.

Special items for the month of March included:


  • $149.0 million in reorganization expense, primarily attributable to a Republic Airways unsecured claim allowed by the bankruptcy court
  • Non-cash mark-to-market gains on fuel hedge contracts of $4.0 million


Operational results for the month of March included:


  • A 19.7 percent year-over-year mainline capacity reduction
  • Mainline unit cost excluding fuel (CASM ex-fuel) of 5.80 cents, a reduction of 8.5 percent from the prior year
  • Mainline total unit cost of 7.82 cents, a reduction of 25.2 percent compared to March 2008
  • Mainline passenger revenue (PRASM) of 9.53 cents, down 12.4 percent from the previous year
  • Mainline total unit revenue (RASM) 10.31 cents, 10.0 percent lower than March 2008


"I am very proud of our March performance," said Frontier President and CEO Sean Menke. "Despite a near 20 percent reduction in capacity, we were able to achieve one of the lowest unit costs in the industry. At the same time, our AirFairs product and other revenue initiatives helped offset a decline in bookings and enabled us to produce a net profit and our highest operating margin for any March since 2000. Posting an operating profit of $21 million in the face of a double-digit unit revenue reduction is proof positive that our business model positions Frontier as a leader among low-cost carriers."

Special items for the three months ended March 2009 included:


  • Reorganization costs of $179.8 million, primarily attributable to a Republic Airways unsecured claim allowed by the bankruptcy court
  • Non-cash mark-to-market gains of $11.4 million on fuel hedging activity


Operational results for the March quarter included:

  • A 20.3 percent year-over-year mainline capacity reduction
  • Mainline unit cost excluding fuel (CASM ex-fuel) of 6.08 cents, a 7.3 percent reduction from the prior year
  • Mainline total unit cost of 8.32 cents, a reduction of 19.8 percent compared to March 2008
  • Mainline passenger revenue (PRASM) of 8.71 cents, down 6.1 percent from the previous year
  • Mainline total unit revenue (RASM) 9.50 cents, 3.4 percent lower than March 2008


Frontier's cash position increased to $71.8 million for the period ending March 2009.

"Frontier is one of only a few carriers posting profits in the first quarter of the year," said Menke. "We continue to prove that our restructuring efforts have positioned us to consistently make money in the most competitive market in the country and in the face of the most trying economic times. Clearly, maintaining our low cost structure allows our operation to buck industry trends and make money in a difficult revenue environment."

Menke concluded, "It is a tribute to every Frontier employee that we accomplished these financial results while maintaining the operational excellence that has earned us top marks for our on-time performance, mishandled bags ratio, flight completion, and few customer complaints."



NON-GAAP RECONCILIATION OF NET INCOME EXCLUDING SPECIAL ITEMS: -------------------------------------------------------------- (In thousands) Month ended Three months ended March 2009 March 2009 Net Loss as reported $(129,881) $(160,979) Reorganization expenses 148,963 179,849 Net Income excluding reorganization items 19,082 18,870 Less: Non-cash mark-to-market fuel hedge gains 4,030 11,372 Net Income excluding special items $15,052 $7,498 Total Revenue $98,622 $263,919 Net margin, excluding special items 15.3% 2.8% NON-GAAP RECONCILIATION OF OPERATING PROFIT EXCLUDING SPECIAL ITEMS: -------------------------------------------------------------------- (In thousands) Month ended Three months ended March 2009 March 2009 Operating income as reported $20,732 $25,093 Less: Non-cash mark-to-market fuel hedge gains 4,030 11,372 Operating Income excluding special items $16,702 $13,721 Total Revenue $98,622 $263,919 Operating margin, excluding special items 16.9% 5.2%
NON-GAAP RECONCILIATION OF MAINLINE CASM EXCLUDING FUEL: -------------------------------------------------------- (In thousands) Month ended Three months ended March 2009 March 2009 Total operating expenses $77,890 $238,826 Less: operating expenses for Lynx Aviation (including fuel) 7,696 21,738 Total mainline operating expenses 70,194 217,088 Less: mainline fuel expense 18,128 58,390 Mainline operating expenses excluding fuel $52,066 $158,698 Mainline ASM's 897,642 2,609,597 Total Mainline CASM 7.82 cents 8.32 cents Mainline CASM, ex-fuel 5.80 cents 6.08 cents
 

sshrae

Well-known member
Joined
Jan 8, 2008
Posts
361
Total Time
7000
Way to go guys. Its good to see this after all everybody has been through over there. I think Menke's management team really has come through. Had Potter still been at the helm I don't think f9 would have made it through the summer. Just speculating of course. I'm glad to see that you guys will be around for a while.
 

Cornelius

Where's Pancakes House
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Nov 26, 2001
Posts
475
Total Time
7000
Good news indeed since competing with WN is very difficult.
 

FBN0223

Well-known member
Joined
Nov 26, 2007
Posts
563
Total Time
14k
Go Frontier!!!! I ride on F9 frequently. Excellent flight crews, nice airplanes, great product.
 
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