Frontier Airlines reports fourth straight monthly operating profit
Frontier Airlines Holdings today reported an operating profit of $1.5 million for the month of February, Frontier's fourth consecutive monthly operating profit.
Frontier also reported a consolidated net loss of $3.2 million for the month. The results were filed in the Company's Monthly Operating Report for February 2009.
Excluding non-cash mark-to-market fuel hedge transactions, Frontier would have reported an operating loss of $2.6 million. Further, excluding reorganization costs, the company would have reported a consolidated net loss of $4.8 million.
Frontier's February financial results included:
Reorganization costs of $2.6 million
A realized loss on fuel hedge contracts of $4.5 million, which was almost completely offset by a mark-to-market gain of $4.1 million on fuel hedging activity
Operational results for the month of February included:
A 15.4 percent year-over-year mainline capacity reduction
Mainline unit cost excluding fuel (CASM ex-fuel) of 6.45 cents, a 5.5 percent reduction from the previous year
Mainline total unit cost of 8.67 cents, a reduction of 13.0 percent compared to February 2008
Mainline passenger revenue (PRASM) of 8.26 cents, down 3.7 percent from the prior year
Mainline total unit revenue (RASM) 9.09 cents, 1.1 percent lower than February 2008
"February is a tough month for all airlines," said Frontier President and CEO Sean Menke, "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 percent decrease in the company's costs excluding fuel on a year-over-year basis despite a more than 15 percent 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."
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