Frontier Airlines Braces For Turbulence

[Fly]

Frontier Braces for Turbulence

Frontier Airlines Braces For Turbulence


Brett Nelson, 03.29.05, 6:00 AM ET

NEW YORK - In last year's annual letter to Frontier Airlines' shareholders, Chief Executive Jeff S. Potter was pleased to write that his airline was one of the few to post a profit for the prior twelve months. But the euphoria wouldn't last long.

On May 26, Denver-based Frontier will report a loss for fiscal 2005, ending March 31, of roughly $25 million, or 80 cents per share, on sales of $700 million. By some Wall Street estimates, it will probably shed another 20 cents next year.

 

[Dizel8]

Sorry Fly, but some people have belief in F9. Although surely I must have missed the UAL upgrade!

http://biz.yahoo.com/ap/050324/frontier_upgrade_1.html



Associated Press
Frontier Upgraded by Goldman Sachs
Thursday March 24, 3:12 pm ET Frontier Upgraded by Goldman Sachs on Cost-Saving Measures, Western Route Trends

NEW YORK (AP) -- Goldman Sachs upgraded Frontier Airlines Inc. for the second time this year as it looks for the airline to post a profit in 2007 despite higher fuel prices.

Frontier shares were up $1.38, or 16 percent, to $9.89 in afternoon trading on more than triple its average trading volume after peaking at $10.41 in the morning.

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Goldman Sachs upgraded Denver-based Frontier to "Outperform" from "In-Line," following a Jan. 18 upgrade from "Underperform," based on the airline's trends toward positive cost and revenue leverage in 2006.

The investment firm said in a research note that Frontier's revenue will benefit in the spring and summer by exiting underperforming Los Angeles routes and gaining passengers from United Airlines as that airline swaps its mainline planes for regional jets in Denver.

Additionally, Goldman Sachs said that Frontier stands to save $5 million in training costs and $6 million in maintenance costs as it completes its transition to an all-Airbus fleet.

Goldman Sachs narrowed its loss per share estimates for Frontier to 25 cents from 29 cents for the March quarter, to 81 cents from 85 cents for 2005, and to 20 cents from 55 cents for 2006. The firm estimates 2005 revenue of $824.1 million and 2006 revenue of $931 million.

Analysts surveyed by Thomson First Call currently expect Frontier to post a loss of 73 cents a share on revenue of $799.8 million in 2005, and a loss of 42 cents a share on revenue of $851.8 million in 2006.

Goldman Sachs also predicts Frontier will be profitable in 2007, raising its outlook to 20 cents per share -- from a loss of 25 cents -- on revenue of $1.04 billion.

However, Goldman Sachs said limited airline seats on routes in the western United States fared well for all western route carriers faced with record fuel prices.

"Because capacity growth is relatively flat in the western U.S., airlines have more ability to push consumers into higher-priced buckets, particularly in periods of peak demand," said Goldman Sachs analyst Glenn Engel in a research note.

Based on this, the firm revised its first-quarter loss estimate for America West Holdings Corp. to 70 cents a share from $1 based on double-digit revenue gains expected from an Easter benefit. For 2005 and 2006, Goldman Sachs narrowed loss estimates to $2.50 a share from $2.95, and to 80 cents a share from $1.50, respectively.

Analysts estimate America West will post losses of 99 cents a share for the first quarter, $3.86 a share in 2005, and $1.63 a share in 2006. America West shares rose 4 cents to $5.07 in afternoon trading on the Nasdaq.
__________________

 

[Fly]

Sorry Diesel, some have a belief in United!

 

[Dizel8]

"Sorry Diesel, some have a belief in United!"

Who might that be?

Just razzing you!

Co-existence beats moneylosing attempts at world dominance!

 

[C54Capt]

Fly,

Frontier was upgraded once again this morning to "buy", sorry for the bad news. Fishing for Mr. Fish is proving to be more difficult than it once was for you, which is bringing the entertainment value down for the rest of us on this board.

 

[Busdrvr]

Fly,

Frontier was upgraded once again this morning to "buy", sorry for the bad news. Fishing for Mr. Fish is proving to be more difficult than it once was for you, which is bringing the entertainment value down for the rest of us on this board.

[post="259364"][/post]​

On April 22, Grubman for the first time backed off his bullish stance on Worldcom, lowering his rating from Buy to Neutral. During the time Grubman had a Buy issued on Worldcom, it's shares fell more than 90%. On Monday, Grubman downgraded Worldcom's stock to Underperform from Neutral.

But Grubman wasn't the only analyst cheerleading Worldcom as its shares plummeted. Almost unbelievably, other sell-side analysts had Buy ratings on WorldCom stock as late as yesterday. Vik Grover, an analyst at Kaufman Bros. LP, for example, "reiterated" his Buy rating on WorldCom stock on Tuesday, as the stock price dipped below $1. Grover, scaling back some of his bullish feelings about the company's prospects, did have the sense to lower his price target from $10 to $6, though, as the stock plummeted into the pennies.

http://www.lightreading.com/document.asp?doc_id=17901

 

[appnavapp]

On April 22, Grubman for the first time backed off his bullish stance on Worldcom, lowering his rating from Buy to Neutral. During the time Grubman had a Buy issued on Worldcom, it's shares fell more than 90%. On Monday, Grubman downgraded Worldcom's stock to Underperform from Neutral.

But Grubman wasn't the only analyst cheerleading Worldcom as its shares plummeted. Almost unbelievably, other sell-side analysts had Buy ratings on WorldCom stock as late as yesterday. Vik Grover, an analyst at Kaufman Bros. LP, for example, "reiterated" his Buy rating on WorldCom stock on Tuesday, as the stock price dipped below $1. Grover, scaling back some of his bullish feelings about the company's prospects, did have the sense to lower his price target from $10 to $6, though, as the stock plummeted into the pennies.

http://www.lightreading.com/document.asp?doc_id=17901

[post="259442"][/post]​

You Yonited guys kill me, Why are you worrying about little ole F9? You need to worry about the sorry state your company is in and not blast Frontier every chance you get.

 

[C54Capt]

Bus that was almost entirely irrelavent.

 

[Busdrvr]

Bus that was almost entirely irrelavent.

[post="259644"][/post]​

As is most analysts opinions....

 

[mrfish3726]

Fly,

The fish is still here, and still doing whatever needs to be done to see Frontier prosper. Heck 25 MIL yeah that's alot and management here is doing what it can to see that Frontier is a surviver in the game. BuT HECK Fly your BELOVED UniTED is losing 10 MIL a day, now tell me who is really deeper in the pickle barrel of this devistated airline industry?

And of course as others have pointed out United hasn't seen an up-grade to buy for HOw LONG NOW!!!!! Keep baiting Fly the fish is always willing to check out those bouncing knockers of yours . But that's probably only a dream of yours to !

Enjoy the ride at UniTED, it's still nothing but bumpy air! AND were the hell are those profits that TED keeps racking up for UniTED??? I am STILL waiting to see those financials!

 

[mrfish3726]

Fly,

What the headline of the airticle really should have read was:

Frontier Airlines Braces For Turbulence, but UniTED is still trying to avert that crash landing!

 

[Fly]

Funny how you encourage people to debate with you, but then go crying to the moderators when they do. Why is that? Grow some little boy.

 

[mrfish3726]

Fly,

Your bud RONIN wasn't debating, I showed the moderators proof that he was making PEROSNAL threats. Now have you EVER seen me threaten anyone on any thread? The board has rules if people break the rules they shouldn't be able to post. And you've done your share of childs play on here to Fly so you are no better then the rest of us :blink:

Besides Fly this was a thread about how bad Frontier is doing not about what people have posted!

Frontier is having finacial difficulties just like everyone (except SWA) because of the fare enviroment, over capacity, and high fuel prices. But at least we are still weathering the turbulance. Unlike UniTED who is still trying to keep the whole place from going up in flames and burning to the ground. If fuel does hit that all time high of $80 a barrel later this summer as predicted, I pitty all of us.