Frontier Reports $17.3 Million Second Quarter Net

Frontier Airlines Holdings, Inc. reported consolidated net income of $17.3 million, or $0.39 per diluted share, for the company’s second fiscal quarter ended September 30, compared to consolidated net income of $0.5 million, or $0.01 per diluted share, for the same period last year.

Included in the consolidated net income for the quarter ended Sept. 30, 2007 were non-cash mark to market derivative gains which decreased fuel expense by $1.6 million offset by $2.8 million of startup costs associated with Lynx Aviation, and $1.5 million in accelerated depreciation related to Frontier’s seat replacement project.

These items decreased net income by $0.06 per diluted share. Included in the consolidated net income for the quarter ended September 30, 2006 were non-cash mark to market derivative losses which increased fuel expense by $3.5 million, net gains on the sale of Boeing assets of $0.3 million and $0.8 million of startup costs for Lynx Aviation.

During the quarter ended Sept. 30, 2007, Frontier completed an industry leading 99.92 percent of all domestic flights. Frontier remained among the industry leaders in on-time performance, with 76 percent of all domestic flights arriving within the Department of Transportation’s (DOT) established on-time criteria of 14 minutes within scheduled arrival time.

Mainline passenger revenue increased 17.9 percent as mainline revenue passenger miles (RPMs) grew at a rate of 22.3 percent during the fiscal second quarter, while mainline capacity growth as measured by mainline ASMs increased 11.9 percent from the same quarter last year.

As a result, the airline’s mainline load factor was 84.7 percent for its fiscal second quarter of 2008, 7.2 load factor points more than the mainline load factor of 77.5 percent during the same quarter last year.

Mainline fuel cost per gallon, including non-cash mark to market derivative gains, was $2.26 during the quarter ended September 30, 2007, compared to $2.43 during the quarter ended September 30, 2006, a decrease of 7 percent.