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Sep 25, 2008|
Frontier Airlines Files Monthly Operating Report for August 2008
Airline shows operating profit for second month in a row
DENVER, Sept. 25 /PRNewswire-FirstCall/ -- Frontier Airlines Holdings, Inc. (OTC: FRNTQ) (BULLETIN BOARD: FRNTQ) today filed its Monthly Operating Report for August 2008. Frontier reported an operating profit of $3.3 million and a consolidated net loss of $5.6 million. Frontier's results included the following items:
-- $6.5 million in reorganization items, which included a $4.7 million loss on a sale-leaseback transaction and $1.8 million in professional fees -- A mark-to-market non-cash loss of $0.5 million on fuel hedging contracts -- A loss on early extinguishment of debt of $0.3 million -- These charges were offset by a reversal of severance accrual of $0.5 million
Excluding these items, Frontier showed a net income of $1.2 million in the month of August 2008.
"This clearly shows progress in our Company's bankruptcy proceedings," said Frontier President and CEO Sean Menke. "Even in the face of extremely high fuel prices and strong competition in Denver, we were able to show an operating profit for the second month in a row. We have implemented plans to generate more revenue and have been able to meet and exceed our cost targets for the summer months as we plan our emergence from bankruptcy."
Frontier showed a profit from operations despite a 61 percent increase in fuel costs per gallon (excluding fuel hedging activities) as compared to the same period last year. For the month, Frontier's mainline cost per available seat mile excluding fuel decreased 12.9 percent to 5.4 cents on a capacity decrease of 2 percent year-over-year.
Frontier's cash and short-term investments increased to $77.8 million at the end of August, including net proceeds of $28 million from the first traunch of debtor in possession financing provided by three members of Frontier's Unsecured Creditor's Committee and net proceeds of $4.2 million from a sale-leaseback transaction involving one of Frontier's aircraft. As already announced, Frontier has entered into an agreement with VTB Leasing to sell six of its Airbus A319 aircraft. In early September the Company closed on the sale of two of the six aircraft and is scheduled to close on the remaining aircraft later this calendar year.
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: http://www.frontierairlines.com/frontier/who-we-are/investor-relations/annual- reports-sec-base.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 57 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,
Web site: http://www.frontierairlines.com/