who we are

For the airline's fiscal fourth quarter ended March 31, 2004, the airline reported a net loss of $5.8 million, or $0.16 per common share, compared to a net loss of $13.0 million, or $0.44 per common share, for the same period last year. The results of the fiscal fourth quarter 2004 include charges of $1.1 million in flight crew training expenses related to the start-up of the Company's new Frontier JetExpress regional jet relationship with Horizon Air, as well as $3.4 million for a write-down of Boeing spare parts. These items, net of income taxes, totaled approximately $.08 per diluted common share.

Chief Executive Officer's Comments
Frontier President and CEO Jeff Potter said, "We are pleased to be one of a small number of airlines to be profitable during this past fiscal year. This is as a direct result of the hard work and commitment of Frontier's exceptional employees. While our fiscal year 2004 marked a period of tremendous growth for Frontier, it was also a year of significant challenges, including surging fuel costs, depressed fares, and fierce industry-wide competition. While this quarter's loss is frustrating, we are extremely pleased with the quarter's significant year-over-year improvements in both unit costs and unit revenue. This quarter produced an 8.3 percent improvement in mainline passenger unit revenue, combined with a 4.9 percent decrease in our mainline cost per available seat mile (CASM), excluding fuel. These positive trends, along with the continuing increased load factors, indicate that our customers are responding favorably to our product and new services."

Fourth Quarter Operating Highlights
Mainline passenger revenue increased as mainline revenue passenger miles (RPMs) grew at a rate of 49.4 percent during the fiscal fourth quarter, far out-pacing mainline capacity growth as measured by available seat miles (ASMs), which increased 24.5 percent from the same time last year. As a result, the airline's mainline load factor was 70.1 percent for its fiscal fourth quarter of 2004, 11.7 load factor points greater than the airline's load factor of 58.4 percent during the same quarter last year. The airline's mainline breakeven load factor for the fiscal fourth quarter 2004 increased 3.8 load factor points from 68.9 percent to 72.7 percent. The write-down of Boeing spare parts and the Horizon start-up costs accounted for 2.0 load factor points of the breakeven load factor increase.

During fiscal fourth quarter 2004, the airline's mainline passenger revenue per available seat mile (RASM) increased 8.3 percent to 8.07 cents from the same quarter last year. The increase in RASM was due to the significant increase in load factor, which more than offset a decrease in mainline passenger revenue per passenger mile (yield) of 9.6 percent to 11.53 cents from the same period last year.

The airline's mainline cost per available seat mile (CASM) for the fiscal fourth quarter decreased 3.4 percent to 8.48 cents from 8.78 cents for the same quarter last year. Mainline fuel cost per gallon during the quarter, including taxes and delivery charges, increased 3.5 percent to $1.17, compared to $1.13 for the same period last year. Mainline CASM excluding fuel decreased 4.9 percent to 6.79 cents from the same period last year, when CASM excluding fuel was 7.14 cents.

Senior Vice President and Chief Financial Officer Paul Tate discussed the airline's year-over-year unit cost comparatives stating, "Our fiscal fourth quarter demonstrated improvement in our mainline CASM, both including and excluding fuel. We expect to see the trend toward lower CASM, excluding fuel, continuing at least through the next quarter as we continue to improve our aircraft utilization with longer haul flying such as our Anchorage to Denver and Los Angeles to Philadelphia routes."

Tate also described the airline's current cash and working capital position stating, "As of March 31, 2004, and on a year-over-year basis, our unrestricted cash position has increased from $104.9 million to $190.6 million. In the same period, our working capital has increased from $60.8 million to $87.0 million. Our cash position remains near its all-time high."

The airline's fleet in service on March 31, 2004 consisted of 13 owned Airbus A319 and A318 aircraft, 15 leased Airbus A319 aircraft and 10 leased Boeing 737 aircraft.

Year End Operating and Financial Highlights
The airline's mainline passenger revenues during its fiscal year 2004 increased 33.7 percent to $615.4 million from $460.2 million for the prior year. The airline's mainline capacity, as measured by ASMs, increased 19.0 percent during fiscal year 2004. During fiscal year 2004, the airline's mainline break-even load factor increased 3.8 points to 68.8 percent. The airline's average fare during its fiscal year 2004 decreased 4.6 percent to $104 from $109 from the prior year. The airline's passenger RASM for fiscal year 2004 increased 12.2 percent to 8.56 cents from 7.63 cents for fiscal year 2003.

Mainline CASM for the fiscal year 2004 decreased to 8.31 cents from 8.33 cents for fiscal year 2003. Mainline CASM excluding the airline's fuel costs decreased 1.6 percent to 6.79 cents during fiscal year 2004, compared to 6.90 cents during fiscal year 2003. During fiscal year 2004, the average cost per gallon of fuel was $1.04, an 8.3 percent increase from last year. Daily aircraft utilization for fiscal year 2004 averaged 10.4 hours, an increase of 6.1 percent from fiscal year 2003.

Business developments during the quarter included:

• Began service to our fifth Mexico destination, Ixtapa/Zihuatanejo.
• Began Frontier JetExpress operation with Horizon Air.
• Capped all domestic fares to and from Denver (excluding Alaska) at $315 ($299 plus fuel surcharge where applicable).
• Announced new Denver service, which began on May 23, 2004, to/from Philadelphia (PHL), Spokane (GEG) and Billings (BIL) as well as Frontier's first transcontinental service, which began May 23, 2004 from Los Angeles International Airport (LAX) to Philadelphia.
• Announced new service to Nashville International Airport (BNA) to start June 20, 2004.
• Added mainline and regional jet (RJ) frequency to eight cities.
• Opened a new maintenance base in Kansas City.
• Earned fifth consecutive FAA Diamond Award for enhanced maintenance training.
• Became exclusive airline of the Colorado Crush, Colorado's professional Arena Football League (AFL) team.

Cash Comparisons
Cash, cash equivalents and short-term investments available for operations and investing activities on March 31, 2004 were $190.6 million compared to $104.9 million available on March 31, 2003. The increase in our cash and working capital from March 31, 2003 is largely a result of cash provided by our operating activities for the year ended March 31, 2004 adjusted for reconciling items to net cash and cash equivalents; the common stock offering in September 2003, which netted $81.1 million after offering expenses; an income tax refund from the Internal Revenue Service totaling $26.6 million and the net proceeds from a sale-leaseback transaction of one of our aircraft purchase commitments. These were offset by required prepayments of principal on our government guaranteed loan totaling $58.4 million as a result of the income tax refund and a portion of the proceeds from the stock offering, our decision to pay the remaining balance due of $11.6 million on the government guaranteed loan after the required prepayments, and an increase in restricted investments totaling $10.6 million which was largely a result of the increase in our collateral requirements to our bankcard processor associated with the increase in our air traffic liability.

Potter concluded, "The fourth quarter was a challenge as we experienced much higher fuel costs than we anticipated. Even with this additional cost, we had a significant improvement in our results compared to last year. While we continue to see record high fuel costs as the greatest challenge for Frontier and the industry, the ongoing depressed fare environment is equally as challenging. Further reducing our unit costs, which is our primary goal for the upcoming year, will allow us to continue our expansion plan, bringing low fares and the quality product our customers have come to expect, to both new and existing Frontier cities across North America.

"Although our bookings are strong for the summer and we are seeing further reductions in our unit costs, excluding fuel, the fuel price increases we've seen just since the end of the March quarter, as well as a continued weak yield environment, have led us to believe that we will most likely report a loss in the upcoming June quarter."

Senior leadership will host a conference call to discuss Frontier's quarterly earnings on May 28, 2004 at 9:00 a.m. Mountain Standard Time. The call is available via the World Wide Web on the airline's Web site at www.frontierairlines.com or using the following URL: http://www.vcall.com/CEPage.asp?ID=88275.

Currently in its tenth year of operations, Denver-based Frontier Airlines is the second largest jet service carrier at Denver International Airport with a fleet of 42 aircraft and employing approximately 4,300 aviation professionals. Frontier, in conjunction with Frontier JetExpress operated by Horizon Air, operates routes linking our Denver hub to 42 destinations in 23 states spanning the nation from coast-to-coast and to five cities in Mexico. Frontier's maintenance and engineering department has received the Federal Aviation Administration's highest award, the Diamond Certificate of Excellence, in recognition of 100 percent of its maintenance and engineering employees completing advanced aircraft maintenance training programs, for five consecutive years. In August 2003, Frontier ranked as one of the "Top 10 Domestic Airlines" as determined by readers of Travel + Leisure magazine. Frontier provides capacity information and other operating statistics on its Web site, which may be viewed at www.frontierairlines.com.

Legal Notice Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be considered forward-looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from these forward looking statements. Many of these risks and uncertainties cannot be predicted with accuracy and some might not even be anticipated. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: further downward pressure on airfares due to competition, demand or other factors; continuing adverse effects of high fuel costs; increased prices for fuel and the inability to recover these higher fuel costs in airfares; unanticipated decreases in the volume of passenger traffic due to terrorist acts or additional incidents that could cause the public to question the safety and/or efficiency of air travel; negative public perceptions associated with increased security wait times at various domestic airports; the inability to secure adequate gate facilities at Denver International Airport and at other airports where Frontier operates; weather, maintenance or other operational disruptions; air traffic control-related difficulties; the impact of labor issues; actions of the federal and local governments; changes in the government's policy regarding relief to the airline industry especially as it relates to war status risk insurance; the stability of the U.S. economy and the economic environment of the airline industry; and other factors detailed in the Company's public filings with the Securities and Exchange Commission. Any forward-looking statement is qualified by reference to these risks and factors. These risks and factors are not exclusive, and 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 these and other factors may be contained in the Company's SEC filings, including without limitation, the Company's Form 10-K for its fiscal year ended March 31, 2003, the Company's Form 10-Q for the quarter ended December 31, 2003 and the Company's Form 8-K filed September 19, 2003. The Company's filings are available from the Securities and Exchange Commission or may be obtained through the Company's website, www.frontierairlines.com.

Related Assets

• Frontier Airlines Emerges from Chapter 11 Protection
• Frontier Airlines Reports August Operating Profit of $10.2 Million
• Frontier Airlines’ Plan of Reorganization Confirmed by Bankruptcy Court
• Frontier Airlines’ Plan of Reorganization Approved By Creditors
• Frontier Airlines Reports July Net Profit of $17.8 Million