-T / T / +T | Comment(s)

Monday, November 24, 2008

Frontier Reports Financials

Required by its Chapter 11 bankruptcy filing which includes monthly operating reports, Frontier reported an operating loss of $5.8 million and a consolidated net loss of $30.4 million for the three-month period ending September 2008. Included in the net loss for the quarter was $16.6 million attributable to reorganizational costs.
“The operating loss and operating margin reported are still among the best in the industry when compared to other airlines,” said the airline. Cost per available seat mile (CASM) excluding fuel at 5.68, the lowest in the history of the company and a 9.8 percent decrease from the same period last year
During the quarter, Frontier incurred an increased fuel expense of more than $70 million, or a 72.6 percent increase in the price of fuel per gallon, still at record highs during the quarter, compared to the same quarter last year.
The reports came on the heels of successful efforts by the Teamsters Airline Division bringing Colorado Sen. Ken Salazar and Reps. John Salazar and Mark Udall on board for opposing plans to outsource heavy-check aircraft maintenance to a foreign repair station. Frontier planned to outsource about 130 Teamsters aviation mechanics' jobs to Central America. On Nov. 3, the bankruptcy court judge overseeing the airline's Chapter 11 case ruled that it could only do so only as a last resort.

Live chat by BoldChat