Frontier reports Feb-09 financials
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Central America,
Frontier Airlines
Frontier Airlines Holdings reported (24-Mar-09) an operating profit of USD1.5 million for the month of February, Frontier's fourth consecutive monthly operating profit. Frontier also reported a consolidated net loss of USD3.2 million for the month. The results were filed in the Company's Monthly Operating Report for Feb-09.
Excluding non-cash mark-to-market fuel hedge transactions, Frontier would have reported an operating loss of USD2.6 million. Further, excluding reorganization costs, the company would have reported a consolidated net loss of USD4.8 million.
Frontier's February financial results included:
* Reorganization costs of USD2.6 million
* A realized loss on fuel hedge contracts of USD4.5 million, which was almost completely offset by a mark-to-market gain of USD4.1 million on fuel hedging activity
Operational results for the month of February included:
* A 15.4% year-over-year mainline capacity reduction
* Mainline unit cost excluding fuel (CASM ex-fuel) of 6.45 cents, a 5.5% reduction from the previous year
* Mainline total unit cost of 8.67 cents, a reduction of 13.0% compared to Feb-08
* Mainline passenger revenue (PRASM) of 8.26 cents, down 3.7% from the prior year
* Mainline total unit revenue (RASM) 9.09 cents, 1.1% lower than Feb-08
Frontier President and CEO Sean Menke said, "February is a tough month for all airlines. But despite the anticipated seasonal reduction in traffic, the short 28-day month and the severely weakened economy, our ability to restructure our business allows us to produce very positive results in an extremely difficult economic environment. The continuing trend of significant year-over-year improvement in our operating results is a clear indicator that the aggressive cost reductions we've implemented and our additional revenue initiatives have positioned us very well to meet the challenges of these difficult times."
Menke pointed to the 5-plus% decrease in the company's costs excluding fuel on a year-over-year basis despite a more than 15% reduction in capacity as proof that "the fundamentals of this company are solid." He said that the February results and those of the previous three months "provide a positive backdrop for our discussions with potential investors as we seek to secure financing to emerge from bankruptcy later this year."
(c) Centre for Asia Pacific Aviation. Date posted: 25-Mar-09
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Frontier reports Feb-09 financials 
