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Oct 28, 2008|
Frontier Airlines Files Monthly Operating Report for September 2008
DENVER, Oct. 28 /PRNewswire-FirstCall/ -- Frontier Airlines Holdings, Inc. (OTC: FRNTQ) (BULLETIN BOARD: FRNTQ) today filed its Monthly Operating Report for September 2008. Frontier reported an operating loss of $10.4 million and a consolidated net loss of $20.8 million for the month of September 2008. For the second fiscal quarter ended September 30, 2008, the Company reported a $5.8 million operating loss and a $29.7 million consolidated net loss.
Frontier's September results included $7.0 million in reorganization costs, $1.4 million in tax expense related to the amount expected to be due on the realized gain on aircraft sales and $2.1 million in unrealized losses on fuel hedges. Included in the $7.0 million in reorganization costs were the following:
-- $13.5 million for a non-cash equipment write-off; -- $1.8 million related to the write-off of debt issuance cost on convertible bonds; and -- $1.6 million in professional fees related to the reorganization
These items were offset by recorded gains of $9.9 million from two aircraft sales during the month and a gain on a contract termination and other net gains related to settlements.
Contributing to Frontier's operating loss was a 54 percent increase in fuel costs per gallon (excluding fuel hedging activities) as compared to the same period last year as well as a 14 percent decrease in capacity year-over-year.
"Despite the net loss, we are pleased with the results of our restructuring plan and continue to have success managing our liquidity," said Frontier CEO Sean Menke. "Our cash and short-term investments remained relatively stable in September, which is a direct result of our diligent cash management efforts, our continued successes with cost management and the realized proceeds from our aircraft sales."
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-relations/annual-reports- sec-filings.do
About Frontier Airlines Holdings, Inc.
Frontier Airlines Holdings, Inc. is the parent company of Denver-based Frontier Airlines. Currently in its 15th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing more than 5,000 aviation professionals. Frontier Airlines' mainline operation has 56 aircraft with one of the youngest Airbus fleets in North America. Frontier Airlines' mainline operations offer 24 channels of DIRECTV® service in every seatback along with a comfortable all-coach configuration. In conjunction with a fleet of ten Bombardier Q400 aircraft operated by Lynx Aviation (a subsidiary of Frontier Airlines Holdings, Inc.), Frontier offers routes to more than 50 destinations in the U.S., Mexico, Canada and Costa Rica. In November 2006, Frontier and AirTran announced a first-of-its-kind integrated marketing partnership that offers travelers the ability to reach more than 80 destinations across four countries with low fares aboard two of the youngest fleets in the industry. For more in-depth information on Frontier Airlines, please visit its Web site at http://frontierairlines.com/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in this press release that are not historical facts may be forward-looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could result in actual results differing materially from expected results and represent the Company's expectations and beliefs concerning future events based on information available to the Company as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. Additional information regarding risk factors that may affect future performance at the Company are contained in the Company's SEC filings, including without limitation, the Company's Form 10-K for its fiscal year ended March 31, 2008.
SOURCE: Frontier Airlines Holdings, Inc.
CONTACT: Corporate Communications of Frontier Airlines Holdings, Inc.,
Web site: http://www.frontierairlines.com/