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Chief Executive Officer's Comments

Frontier President and CEO Jeff Potter said, "Frontier's challenges during our fiscal second quarter are reflected in the results we are communicating today. Although leisure traffic rebounded slightly this summer, business traffic did not return as quickly. Our results reflect our country's ongoing economic slowdown, a weak revenue environment, high fuel costs, added insurance costs and ongoing excess capacity in our industry relative to demand. However, I am pleased to note that our focus on decreasing our cost per available seat mile is producing favorable improvements as evidenced by a year over year September quarter reduction in unit costs of 18.2 percent, excluding fuel, and 16.3 percent, including fuel. These year over year unit cost improvements are largely attributable to increased utilization of our aircraft, the induction of six brand-new Airbus aircraft into our fleet and the elimination of travel agent commissions, which occurred June 1, 2002.

"Looking forward, although we are pleased thus far with our holiday bookings, we currently expect a moderate loss for the fiscal third quarter ended December 31, 2002."

Operating Highlights

The airline's traffic, as measured by revenue passenger miles (RPMs), grew at a rate of 26.0 percent during its fiscal second quarter, while capacity growth, as measured by available seat miles (ASMs), increased by 29.9 percent, from the same time last year. As a result, the airline's load factor was 59.2 percent for its fiscal second quarter, 1.8 load factor points less than last year's load factor of 61.0 percent during the same time period. During fiscal second quarter 2003, the airline's breakeven load factor increased 7.7 load factor points from 55.1 percent to 62.8 percent.

Passenger revenue per passenger mile (yield) for the airline's second fiscal quarter 2003 decreased 19.0 percent to 12.57 cents from 15.51 cents for the same period last year. Passenger revenue per available seat mile (RASM) for the quarter decreased 21.4 percent to 7.44 cents from 9.46 cents for the same period last year. The airline's average fare during its fiscal second quarter 2003 was $109, a 17.4 percent decrease from its fiscal second quarter 2002, when the average fare was $132.

The airline's cost per available seat mile (CASM) for the quarter decreased 16.3 percent to 7.95 cents from 9.50 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, decreased 1.7 percent to 92.1 cents per gallon, compared to 93.7 cents for the same period last year. CASM excluding fuel decreased 18.2 percent to 6.58 cents from the same period last year when CASM excluding fuel was 8.04 cents.

Business Developments During the Quarter Included:
· Retired two Boeing 737-200 aircraft from the fleet and began the process to return those aircraft to the lessor;
· Accepted delivery of two 132-seat Airbus A319 aircraft, bringing the airline's total fleet size at the end of its fiscal second quarter 2003 to 33 aircraft (17 Boeing 737-300s, 5 Boeing 737-200s and 11 Airbus A319 aircraft);
· Inaugurated Frontier JetExpress service, operated by Mesa Airlines, to Wichita, Kan. on Sept. 18.,
· Announced the addition of service to three new Frontier destinations and one new Frontier JetExpress destination, which began on Oct. 22;
· Announced the planned discontinuation of service to Boston, Mass. effective Oct. 22;
· Filed applications with the U.S. Department of Transportation (DOT) and Mexican Government authorities for authorization to serve Cancun, Cabo San Lucas and Mazatlan, Mexico from Denver International Airport. The airline has since received approval from the U.S. DOT and Mexican authorities, and plans to inaugurate service to Cancun and Mazatlan, Mexico in December 2002;
· Reached a three-year agreement with the International Brotherhood of Teamsters (IBT), Local Chapters 961, 986 and 19, representing the carrier's maintenance employees in Denver, Colo., Phoenix, Ariz., and El Paso, Texas, respectively, after less than one year of negotiations;
· Increased the percentage of Internet-related flown revenue generated from the airline's Web site to 34.4 percent of the airline's total revenue, and increased the percentage of Internet-related flown revenue generated from all Internet sites to 47.8 percent of the airline's total revenue.
· Enrolled approximately 66,000 new members in EarlyReturns, bringing the total number of members of the airline's frequent flyer program to over 396,000.

Potter continued, "During our fiscal second quarter 2003, we signed a letter of intent with LiveTV to bring DIRECTV AIRBORNETM satellite programming to every seatback in our Airbus fleet, and in October we signed a purchase and long-term services agreement with LiveTV for that system. We recently completed the installation of the LiveTV system on our first Airbus aircraft, and we plan to have all of our Airbus aircraft equipped with the LiveTV system by next spring. The installed systems will become operational upon receipt of regulatory approval, which we anticipate to be sometime in the current quarter. We plan to offset the installation and usage costs for the system by implementing a $5 per segment usage charge for access to the system. We also believe the DIRECTVTM product represents a significant value to our customers, encouraging more customers to choose Frontier over our competitors."

Available Cash Comparisons

Cash, cash equivalents and short-term investments available for operations and investing activities on Sept. 30, 2002 totaled $44.6 million. The airline reported working capital of $5.4 million as of Sept. 30, 2002, an 80.9 percent decrease from the airline's working capital on June 30, 2002, when the airline reported working capital of $28.3 million. The airline had a net increase of approximately $12.1 million of pre-delivery payments for new aircraft during its fiscal second quarter 2003. In addition, the airline made $6.9 million in down payments on one new, owned aircraft.

Frontier's Chief Financial Officer Paul Tate noted, "We are mindful of the Company's diminished cash position from June 30, 2002, which is primarily due to continuing to execute our fleet improvement/transition plan that includes ownership of some of the Airbus aircraft. We are taking action to replenish the Company's liquidity and, as we announced yesterday, have received conditional approval from the Air Transportation Stabilization Board (ATSB) for a $63 million federal loan guarantee of a $70 million commercial loan facility. Subject to satisfaction of the conditions imposed by the ATSB and obtaining the necessary internal approvals, we expect to obtain funds from the ATSB supported loan transaction, perhaps as soon as our fiscal third quarter. In addition, we recently signed a letter of intent for the sale/leaseback of two Airbus A319 aircraft."

Potter concluded by noting the accomplishments of Frontier's employees, stating, "Reporting a loss for the September quarter is disappointing to the Frontier team, and while we face ongoing revenue challenges, I commend the people of Frontier for their impressive actions with respect to decreasing costs at our airline. We look forward to introducing LiveTV to our customers and inaugurating service to Mexico during our fiscal third quarter."

Senior leadership will host a conference call to discuss the airline's quarterly earnings on Nov. 7, 2002 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/EventPage.asp?ID=82604.

About Frontier
Denver-based Frontier Airlines employs approximately 3,000 aviation professionals and is the second largest jet service carrier at Denver International Airport. Frontier and its regional jet partner Frontier JetExpress offer service to 37 cities. Frontier's fleet consists of 34 aircraft, which feature a single-class configuration. In 1999, 2000 and 2001, Frontier's maintenance and engineering department 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. In April 2002, Entrepreneur ranked Frontier one of two "Best Low-Fare Airlines," and in September 2001, Fortune ranked Frontier 41st on its 100 Fastest Growing Companies list. 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, projections for the current quarter, the positive impact of LiveTV, and the intention of Frontier to improve its liquidity through the ATSB guaranteed loan. 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 holiday bookings and improved corporate travel expenditures; capacity and pricing actions of directly competing airlines; general industry capacity and pricing decisions; the inability to obtain the necessary approvals for the operation of LiveTV on a timely basis, or the failure of the LiveTV system to produce the anticipated increase in passenger traffic; the inability of Frontier to satisfy all conditions of the ATSB guaranteed loan; additional incidents, including a potential war with Iraq that could cause the public to question the safety and/or efficiency of air travel industry consolidation; the stability of the U.S. economy; uncertainties regarding aviation fuel prices; and operational disruptions as a result of bad weather. 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-Q for its fiscal first quarter ended June 30, 2002 and the Company's 10-K for its fiscal year ended March 31, 2002.

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