Frontier will ground 7 planes and reduce by 17%

[radarlove]

Selling assets by definition is selling those things that generate profit.

 

[StaySeated]

I have heard people refer to "emotional roller coaster" before, and I thought that I actually understood what that meant, until now. The last eight weeks have been interesting to say the least. The unexpected filing, the fear that the creditors committee would shut us down at peak cash on June 5th, still flying on June 6th, no announcement of dip, the expected announcement of assets being sold...

One day I believe we will be around until Sept. The next day I am certain we will be here until Jan. The only thing I know for sure, with out a doubt, is that we will only survive by way of a miracle. The only way this airline will make money is if oil drops below $115. It is really that simple. If you look at our YOY yields it is painfully obvious that no amount of incremental revenue increase will overcome the cost of oil. Oil must come down, and it must come down a lot...quickly.

So that is the situation. You can put a fine tooth comb over any further announcement from the company, it will be meaningless. The only thing you need to ask yourself is, do we have enough liquidity to survive until oil drops. I am pretty sure we all know the answer to that.

 

[CFI]

Operating loss for the month of May was $16.5mil, with a net loss of $22.0mil.

Cash on hand at the end of May was $110.1mil, up from $99.8mil from the end of April, and reflects a $59.1mil gain from the sale of property. Of the cash and cash equivalents, $100.5mil is considered restricted. (10 mil unrestricted )

This loss is in addition to previously reported $16.5mil foss for the last 20 days of April.

Can anybody confirm this?

If you look through the report you will see that the 100 million restricted cash is in addition to the 110 million unrestricted cash.

 

[radarlove]

If you look through the report you will see that the 100 million restricted cash is in addition to the 110 million unrestricted cash.

That makes more sense.

 

[Lampshade]

Airbus is giving there A/C deposits back to F9 so that's good. But the credit card companies have increase the amount of hold backs to 100%.

 

[StaySeated]

Rough math on remaining liquidity.

We had $108M on May 1. Lost $22M in May.

That leaves us with approximately $86M on June 1. June is ugly due to the 1110 cure. No one knows how much that was but it was at least $15M, possibly double that number. After the first week of June we are down to $71 (if 1110 was only $15M), and then we go on to lose at least another $22M for the month. Keep in mind fuel in June was much higher than May, but our revenue also increased.

That would leave us with right around $50M to start July. If oil remains at $140 we will finish the month with less than $30M.

 

[Lampshade]

They will make it through the summer...After August, I worry for them. Good Luck guys.

 

[Charlie Brown]

If Frontier goes down it will be lucky to be front page news on the money section, except in Denver they will dissappear without a trace.

So sad yet so true. It is big for all of us in the industry, but for others just a blip on the radar.

Best of luck to all F9 drivers....

 

[CitationUltra]

Rough math on remaining liquidity.

We had $108M on May 1. Lost $22M in May.

That leaves us with approximately $86M on June 1. June is ugly due to the 1110 cure. No one knows how much that was but it was at least $15M, possibly double that number. After the first week of June we are down to $71 (if 1110 was only $15M), and then we go on to lose at least another $22M for the month. Keep in mind fuel in June was much higher than May, but our revenue also increased.

That would leave us with right around $50M to start July. If oil remains at $140 we will finish the month with less than $30M.

Add to that the creditors are not going to sit by and watch as they spend every last dime and liquidate their assets. At some point, and probably not too far in the future, the creditor's committee is going to see that if left to continue operating and spending, there will be nothing left. There simply is no hope of moving into the black from here.