Frontier Airlines, Inc.
(Nasdaq: FRNT) today reported a net loss of $10.3 million, or $0.28 cents per
diluted common share, for the airline's third fiscal quarter ended December
31, 2005 compared to a net loss of $11.1 million, or $0.31 cents per diluted
common share, for the same period last year. Included in the net loss for the
three months ended December 31, 2005 were the following items before the
effect of income taxes: unrealized losses on fuel hedges of $1.5 million and
gains of $0.3 million related primarily to the sale of Boeing parts held for
sale. These items, net of income taxes, increased Frontier's net loss by $.03
cents per diluted common share. Included in the net loss for the quarter
ended December 31, 2004 were the following items before the effect of income
taxes: a gain on the sale of assets of $0.1 million, a write down of $0.7
million of the carrying value of expendable Boeing 737 inventory, and an
unrealized loss on fuel derivative hedges of $3.2 million. These items, net
of income taxes, increased Frontier's net loss by $.07 cents per diluted
common share.
Chief Executive Officer's Comments
Frontier President and CEO Jeff Potter said, "While this quarter's results
are in stark contrast with the previous quarter's profits, we once again saw
several promising indicators. Our mainline passenger revenue increased almost
20 percent as we carried 14 percent more passengers on capacity growth of only
nine percent. In addition, our year-over-year mainline average fare improved
for the fourth straight quarter, increasing almost two percent on a year-over-
year basis. However, the resulting nine percent increase in mainline revenue
per available seat mile (RASM), was overshadowed by three significant
aberrations to our fiscal performance -- a 35 percent year-over-year increase
in fuel cost per gallon; an estimated $4.8 million in lost revenue due to the
disruption of our Cancun and Cozumel service as a result of Hurricane Wilma;
and an estimated $1.2 million in lost revenue due to the discontinuation of
service to New Orleans as a result of Hurricane Katrina."
PR Newswire
(Nasdaq: FRNT) today reported a net loss of $10.3 million, or $0.28 cents per
diluted common share, for the airline's third fiscal quarter ended December
31, 2005 compared to a net loss of $11.1 million, or $0.31 cents per diluted
common share, for the same period last year. Included in the net loss for the
three months ended December 31, 2005 were the following items before the
effect of income taxes: unrealized losses on fuel hedges of $1.5 million and
gains of $0.3 million related primarily to the sale of Boeing parts held for
sale. These items, net of income taxes, increased Frontier's net loss by $.03
cents per diluted common share. Included in the net loss for the quarter
ended December 31, 2004 were the following items before the effect of income
taxes: a gain on the sale of assets of $0.1 million, a write down of $0.7
million of the carrying value of expendable Boeing 737 inventory, and an
unrealized loss on fuel derivative hedges of $3.2 million. These items, net
of income taxes, increased Frontier's net loss by $.07 cents per diluted
common share.
Chief Executive Officer's Comments
Frontier President and CEO Jeff Potter said, "While this quarter's results
are in stark contrast with the previous quarter's profits, we once again saw
several promising indicators. Our mainline passenger revenue increased almost
20 percent as we carried 14 percent more passengers on capacity growth of only
nine percent. In addition, our year-over-year mainline average fare improved
for the fourth straight quarter, increasing almost two percent on a year-over-
year basis. However, the resulting nine percent increase in mainline revenue
per available seat mile (RASM), was overshadowed by three significant
aberrations to our fiscal performance -- a 35 percent year-over-year increase
in fuel cost per gallon; an estimated $4.8 million in lost revenue due to the
disruption of our Cancun and Cozumel service as a result of Hurricane Wilma;
and an estimated $1.2 million in lost revenue due to the discontinuation of
service to New Orleans as a result of Hurricane Katrina."
PR Newswire