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Chief Executive Officer's Comments
Frontier President and CEO Jeff Potter said, "We are very pleased with our fiscal first quarter results, and applaud the efforts of our employees who worked diligently to return Frontier to profitability. Demand for Frontier's services outpaced our capacity growth during the quarter, which led to a nearly four percent increase in revenue per available seat mile. This increased demand, coupled with a three percent decrease in cost per available seat mile, contributed to our positive results. Recently, we implemented a new, simplified fare structure and launched a unique branding campaign, 'A Whole Different Animal,' and we believe customer response to both of those initiatives is evidenced in our fiscal first quarter results."

Operating Highlights
Total revenues during the airline's fiscal first quarter increased 27.4 percent to $142.4 million from $111.8 million in the fiscal first quarter of 2003, while operating expenses during the same time increased 18.5 percent to $136.2 million from $114.9 million from the same period last year.

The airline's cost per available seat mile (CASM) for the quarter decreased 3.1 percent to 8.13 cents from 8.39 cents for the same quarter last year. Fuel cost per gallon during the quarter, including taxes and the cost of delivering fuel into the aircraft, increased 14.7 percent to 95.7 cents per gallon, compared to 83.4 cents for the same period last year. CASM excluding fuel decreased 5.3 percent to 6.74 cents from the same period last year when CASM excluding fuel was 7.12 cents.

The airline's traffic, as measured by revenue passenger miles (RPMs), grew at a rate of 30.9 percent during its fiscal first quarter, while capacity growth, as measured by available seat miles (ASMs), increased by 22.3 percent, from the same time last year. As a result, the airline's load factor was 67.2 percent for its fiscal first quarter, 4.4 load factor points greater than the airline's load factor of 62.8 percent during the same time last year. During fiscal first quarter 2004, the airline's breakeven load factor increased .9 load factor points from 65.0 percent to 65.9 percent.

During fiscal first quarter 2004, passenger revenue per passenger mile (yield) decreased 3.3 percent to 12.29 cents from 12.71 cents for the same period last year. The airline's average fare during its fiscal first quarter 2004 was $105, a 2.8 percent decrease from its fiscal first quarter 2003, when the average fare was $108.

Chief Financial Officer Paul Tate discussed the airline's year-over-year unit cost improvements, stating, "During the quarter, we continued to reduce our unit costs, in part achieved by increasing the number of owned aircraft from an average of three and a half to nine. In addition, bringing in newer Airbus A319 aircraft has decreased our overall maintenance costs, reduced our fuel burn per block hour, and enabled us to increase average aircraft utilization from 9.9 hours, during the first fiscal quarter 2003, to 10.2 hours, during the fiscal first quarter 2004. We are also experiencing greater economies of scale associated with slower indirect cost growth in relation to our 22.3 percent increase in ASMs during the quarter."

The airline's fleet on June 30, 2003 consisted of nine owned Airbus A319 aircraft, nine leased Airbus A319 aircraft and 18 leased Boeing 737 aircraft. Discussing fleet management activities since June 30, 2003, Tate continued, "We have brought three additional Airbus aircraft into our fleet since the end of our fiscal first quarter. Also, during our current quarter, which ends September 30, 2003, we plan to take a non-cash charge of approximately $2.7 million, net of taxes, for the early retirement of our last two Boeing 737-200s,and the closure of our El Paso, Texas maintenance facility."

Business developments during the quarter included:

• Launched an aggressive branding campaign in support of "A Whole Different Airline" tagline, which has increased visibility in the Denver market.
• Contracted with Hahn Air Interline Services to provide Frontier with distribution in key foreign markets, including marketing Frontier to travel agencies and enabling travelers to book travel on Frontier from outside of the U.S.
• Introduced a co-branded Frequent Flyer MasterCard with Juniper Bank, which since its introduction two months ago has contributed to a 10 percent increase in EarlyReturns membership.
• Generated 29.5 percent of flown revenue during the three months ended June 30, 2003 via the airline's Web site, and 46.9 percent of flown revenue from all Web sites during the three months ended June 30, 2003.
• Signed a Letter of Intent with GE Capital Aviation Services (GECAS) to lease two additional Airbus 318 aircraft, scheduled for delivery in May 2004 and March 2005, and one additional Airbus 319 aircraft, scheduled for delivery in February 2005.
• Obtained three arrival/departure slots at John Wayne (Orange County, Calif.) Airport.

Cash Comparisons
Cash, cash equivalents and short-term investments available for operations and investing activities on June 30, 2003 were $128.3 million. The increase in the Company's cash position is a result of its improved operating results, which included government grant monies received under the Emergency Wartime Supplemental Appropriations Act totaling $15.0 million, pretax. Cash provided by operating activities for the quarter ended June 30, 2003, was $35.8 million, compared to $2.4 million for the same period last year when the airline repaid $4.0 million in federal grant funds during its fiscal first quarter 2003. The airline reported working capital of $72.9 million as of June 30, 2003, a 19.9 percent increase from the airline's working capital on March 31, 2003, when the airline reported working capital of $60.8 million.

Cash activity since the conclusion of the airline's fiscal first quarter 2004 includes receipt of a $26.6 million federal income tax refund, and as required by the Company's agreement with the Air Transportation Stabilization Board ("ATSB"), the airline prepaid $10 million of its $70 million ATSB loan.

Potter concluded, "We have announced a variety of initiatives designed to build upon the momentum begun during our fiscal first quarter 2004. These include initiating service to Milwaukee, Wisconsin and Orange County, California at the end of August 2003; initiating service to St. Louis, Missouri in November 2003; opening two additional Mexico destinations in November 2003; and, introducing airport-based kiosks and Internet check-in options for customers this fall. In addition, we will continue to explore both mainline growth opportunities and regional jet partnerships in order to build our expanding route system. We recently took delivery of the world's first Airbus A318 aircraft, and given the tremendous drive of our 3,300 employees, it should come as no surprise that the A318 transition into our fleet was seamless. Building the infrastructure to support the A318's induction into our fleet occurred while carrying record passenger loads, as evidenced during June 2003, when our load factor set an all-time record for Frontier of 75.6 percent. While we will continue to face revenue challenges against a weak domestic economic backdrop, I am confident our employees will continue to demonstrate tremendous perseverance as we work hard to bring Frontier's affordable fares to more cities across America."

Senior leadership will host a conference call to discuss Frontier's quarterly earnings on Aug. 1, 2003 at 9:00 a.m. Mountain Daylight 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=84217.

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 38 aircraft and employing approximately 3,300 aviation professionals. Frontier and its affiliate Frontier JetExpress currently serve 37 U.S. cities with 190 daily flights. 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 four consecutive years. In April 2003, Entrepreneur ranked Frontier one of two "Best Low-Fare Airlines." 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
Frontier notes that this press release contains forward-looking statements and that certain information contained in this press release involves risks and uncertainties that could result in actual results differing materially from expected results. These statements include, but are not limited to, the ability to conserve financial resources while operating in a highly competitive hub, the ability to increase future revenues and the ability to achieve additional unit cost reductions. Forward-looking statements 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. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which 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: the uncertainty of leisure travel and corporate travel expenditures as we enter the historically weak period of post-summer travel; further downward pressure on 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 ability 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 risk insurance; and the stability of the U.S. economy and the economic environment of the airline industry. 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 10-K for its fiscal year ended March 31, 2003, and the Company's Form 10-Q for the quarter ended June 30, 2003.

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