DENVER (AP) -- Frontier Airlines Holdings Inc. said late Thursday its fiscal third-quarter loss more than doubled after fuel costs rose a punishing 16.3 percent and federal certification was delayed for its turboprop subsidiary.
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if(window.yzq_d==null)window.yzq_d=new Object();window.yzq_d['.0i.CELaX9Y-']='&U=13b3jdhrm%2fN%3d.0i.CELaX9Y-%2fC%3d626899.11742544.12469774.1383221%2fD%3dLREC%2fB%3d5133107';While Frontier Airlines already has adjusted routes and laid off 100 employees, it announced additional steps to rein in costs such putting four jets up for sale and an extensive review of its schedule.
"We realized we may be seeing a new norm for fuel prices as well as a potential economic downturn that could adversely affect our bookings," Chief Executive Officer Sean Menke said in a statement.
For the fiscal third quarter ending Dec. 31, Frontier reported a net loss of $32.5 million, or 89 cents a share, compared with a net loss of $14.4 million, or 39 cents a share, in the previous third quarter. Revenue totaled $333.9 million, up from $271.3 million in the year-ago quarter.
The most recent quarter reflected special items that equaled a net loss of 9 cents a share for costs related to the startup of the Lynx Aviation turboprop subsidiary, layoffs, equipment-related expenses and debt extinguishment.
The previous third quarter included special charges that decreased the net loss by 4 cents a share.
Analysts surveyed by Thomson Financial, on average, expected earnings of 82 cents per share on revenue of $332 million. These estimates typically exclude one-time items.
In an interview with The Associated Press, Chief Financial Officer Paul Tate summed up the quarter as a "disconnect on results," noting that unit revenue rose 5.9 percent while unit costs excluding fuel declined 6.4 percent.
"If you look at it from the 30,000-foot view, one would think we just knocked the cover off the ball," he said.
Like its competitors, Frontier's biggest challenge is fuel -- costs in the most recent quarter were $18.4 million higher than in the year-ago quarter, he said.
Frontier's load factor was 76.7 percent, up from 71.2 percent in the year-ago quarter while capacity -- measured by the industry as available seat miles -- climbed 16.3 percent.
In the first nine months, Frontier reported a net loss of $18.7 million, or 51 cents a share, compared with a net loss of $9.9 million, or 27 cents a share, in the comparable nine-month period of the previous fiscal year.
Revenue totaled $1.05 billion in the first nine months compared with $888.5 million in the year-ago period.
Frontier launched the Lynx Aviation operation in December after a two-month delay in the certification process. As it awaited approval, Frontier served three Lynx routes with aircraft from its regional partners. Frontier released its results after the market closed. Its shares fell 6 cents to $2.97 in regular trading Thursday, then gained 10 cents in after-hours electronic trading.
