Frontier Airlines Reports July Net Profit of $17.8 Million

Frontier Airlines Holdings, Inc. today reported a net profit of $17.8 million for the month of July and its ninth consecutive monthly operating profit. The results were filed in the Company’s unaudited Monthly Operating Report for July 2009.

Frontier reported a consolidated operating profit of $24.9 million for the month of July 2009, compared to an operating income of $1.2 million for the same period in 2008, and a total consolidated net income of $17.8 million compared to a net loss of $3.2 million for July 2008. Excluding special items, the Company would have reported net income of $23.1 million, or a net margin of 20.4 percent in July 2009, compared to a net loss of $0.3 million, or a negative margin of 0.2 percent in 2008. Excluding special items, the operating profit for the month was $24.7 million versus an operating profit of $1.8 million in July 2008.

Special items for the month of July 2009 included:

– $5.5 million of reorganization expense (which includes $3.4 million in accelerated depreciation for a planned aircraft sale), compared to $2.4 million in July 2008

– Non-cash mark-to-market gains on fuel hedge contracts of $0.1 million

Operational results for the month of July 2009 included:

– A 16.0 percent year-over-year mainline capacity reduction

– Mainline unit cost excluding fuel (CASM ex-fuel) was 5.78 cents, compared to 5.74 cents in July 2008

– Mainline total unit cost (CASM) was 8.58 cents, a 27.0 percent reduction compared to July 2008

– Mainline passenger revenue (PRASM) was 10.33 cents, down 9.9 percent from the previous year

– Mainline total unit revenue (RASM) was 11.26 cents, an 5.1 percent decrease from July 2008

“These results are absolutely outstanding,” said Frontier President and CEO Sean Menke. “Our financial performance in July and over the past nine months was possible because of our continuous focus on achieving the lowest cost structure in the industry, developing alternative revenue streams through our branded AirFairs program as well as the introduction of ancillary revenues and our constant attention to quality customer service. These results attracted two major investors to vie for ownership of our company and bring us out of bankruptcy. I am proud of the effort put forth by every Frontier and Lynx employee; our success wouldn’t have been possible without their tireless efforts.”

Frontier expects to emerge from bankruptcy in late September as a wholly-owned subsidiary of Republic Airways Holdings, Inc. (NASDAQ: RJET)

Companies in Chapter 11 bankruptcy protection are required to file monthly operating reports to the U.S. Trustee in addition to quarterly reports filed with the U.S. Securities and Exchange Commission.