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Oct 5, 2006|
Frontier Airlines Reports Preliminary Traffic for September 2006
DENVER, Oct. 5 /PRNewswire-FirstCall/ -- Frontier Airlines (NASDAQ: FRNT) today announced preliminary traffic results for September 2006. Revenue passenger miles increased 11.3 percent to 616,459,000 for September 2006 from the same period last year. Available seat miles increased 17.0 percent to 911,638,000 for September 2006 from the same period last year. This resulted in a load factor for September 2006 of 67.6 percent, a decrease of 3.4 points from September 2005, when the airline reported a load factor of 71.0 percent. The airline carried 675,835 passengers during September 2006, a 15.3 percent increase from September 2005. The airline reported passenger yield of 10.38 cents for the month of September 2006, an increase of 0.6 percent from the same period last year. Its passenger revenue per available seat mile was 7.02 cents, down .31 cents or 4.2 percent from September 2005. For the month of September 2006, the airline's average length of haul decreased 3.5 percent to 912 miles as compared to the same period last year.
"Like the majority of the industry, we were not immune to the effects of the terrorist incident in early August, which clearly affected passenger travel primarily in the month of September," said Jeff Potter, President and CEO. "As we stated in our press release of July 27 (as well as in the accompanying 8-K), we had expected our September quarter results to be in line with our June quarter earnings of $.10 per diluted common share, but due to the developments in the month of September, we now expect earnings to fall between $0.01 and $0.05 per diluted common share excluding the impact of unrealized fuel derivative gains and losses. Looking ahead to the December 2006 quarter, I am pleased to say bookings are strengthening and we expect to continue to report positive year-over-year unit revenue improvement."
Fuel Hedge Update
Frontier is currently 60% hedged in the December 2006 quarter broken down as follows:
* WTI crude oil collar with a ceiling of $77/bbl and a floor of $69.40/bbl: 15% of total projected mainline uplift * Gulf Coast Jet collar with a ceiling of $1.94/gal and floor of $1.78/gal: 20% of total projected mainline uplift * Gulf Coast Jet swap at $1.95/gal for 25% of total projected mainline uplift
Frontier also has in place a Gulf Coast Jet hedge for the March 2007 quarter representing 15% of total projected mainline uplift with a ceiling of $2.27/gal and a floor of $1.95/gal.
The following table represents mainline comparisons for the month of September year-over-year, calendar 2006 year-over-year, fiscal 2007 year-over-year and the quarter ended September year-over-year traffic results.
September September Increase/ Percent 2006 2005 (Decrease) Available Seat Miles 911,638,000 779,445,000 132,193,000 17.0% Revenue Passenger Miles 616,459,000 553,748,000 62,711,000 11.3% Load Factor 67.6% 71.0% (3.4) points N/A Revenue Passengers Carried 675,835 586,103 89,732 15.3% **Passenger Yield (cents) 10.38 10.32 .06 0.6% **Passenger Revenue Per Avail. Seat Mile (cents) 7.02 7.33 (.31) (4.2)% Average Length of Haul 912 945 (33) (3.5%) Calendar Calendar Increase/ Percent Year-to-Date Year-to-Date (Decrease) 2006 2005 Available Seat Miles 8,237,596,000 7,117,369,000 1,120,227,000 15.7% Revenue Passenger Miles 6,405,235,000 5,440,153,000 965,082,000 17.7% Load Factor 77.8% 76.4% 1.4 Points N/A Revenue Passengers Carried 6,811,808 5,587,221 1,224,587 21.9% **Passenger Yield (cents) 10.94 10.65 .29 2.7% **Passenger Revenue Per Avail. Seat Mile (cents) 8.51 8.14 .37 4.5% Average Length of Haul 940 974 (34) (3.5%) Fiscal Fiscal Increase/ Percent Year-to-Date Year-to-Date (Decrease) 2007 2006 Available Seat Miles 5,678,077,000 4,864,412,000 813,665,000 16.7% Revenue Passenger Miles 4,523,498,000 3,780,979,000 742,519,000 19.6% Load Factor 79.7% 77.7% 2.0 Points N/A Revenue Passengers Carried 4,831,921 3,911,749 970,172 23.5% **Passenger Yield (cents) 11.03 10.63 .40 3.8% **Passenger Revenue Per Avail. Seat Mile (cents) 8.78 8.27 .51 6.2% Average Length of Haul 936 967 (31) (3.2%) Quarter Ended Quarter Ended Increase/ Percent September September (Decrease) 2006 2005 Available Seat Miles 2,888,964,000 2,518,515,000 370,449,000 14.7% Revenue Passenger Miles 2,238,946,000 1,940,880,000 298,066,000 15.4% Load Factor 77.5% 77.1% 0.4 Points N/A Revenue Passengers Carried 2,428,399 2,027,549 400,850 19.8% **Passenger Yield (cents) 11.30 10.81 .49 4.5% **Passenger Revenue Per Avail. Seat Mile (cents) 8.76 8.33 .43 5.2% Average Length of Haul 922 957 (35) (3.7%) Frontier's fiscal year begins April 1 and ends March 31. ** Passenger yield and passenger revenue per available seat mile is calculated from revenue derived only from the mainline revenue passengers reported in this press release. About Frontier Airlines Holdings, Inc.
Frontier Airlines Holdings, Inc. is the parent company of Denver-based Frontier Airlines. Currently in its 13th year of operations, Frontier Airlines is the second largest jet service carrier at Denver International Airport, employing approximately 5,000 aviation professionals. With 55 aircraft and one of the youngest Airbus fleet in North America, Frontier offers 24 channels of DIRECTV® service in every seatback along with 33 inches of legroom in an all coach configuration. In conjunction with Frontier JetExpress operated by Horizon Air, Frontier operates routes linking its Denver hub to 55 destinations including 47 destinations in 29 states spanning the nation from coast to coast, seven cities in Mexico and one city in Canada. 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 seven consecutive years. In July 2006, Frontier ranked as one of the "Top 5 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 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, 2006 and the Company's Form 10-Q for the quarter ended June 30, 2006.
SOURCE: Frontier Airlines
CONTACT: Joe Hodas of Frontier Airlines, +1-720-374-4504,
Web site: http://www.frontierairlines.com/