Frontier Reports $17.8 Million Net Profit for July

Frontier Airlines Holdings, Inc., reported a net profit of $17.8 million for the month of July and its ninth consecutive monthly operating profit.

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, and 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 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 percent reduction compared to July 2008; and 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, a 5.1 percent decrease from July 2008.