Lynx, Jet Express Drag on FL Losses

Included in Frontier Airlines Holdings, Inc.’s consolidated net loss of $32.5 million, or $0.89 per diluted share, for the company's third fiscal quarter ended December 31, 2007 was a $4.8 million charge for start-up costs and losses for its fledgling regional Lynx Aviation, which was to be expected given the new nature of its feeder. In 2006, Frontier incurred a consolidated net loss of $14.4 million, or $0.39 per diluted share.
Regional partners Horizon (which ended its participation in Frontier Jet Express in November) and Republic contributed $26.6 million in revenues for the quarter, up 17.9 percent and $88.3 million for the year, up 17.8 percent. Lynx had $2.6 million in revenues for the limited period it operated in December. Expenses for the regional partnerships reached $38.5 million in the quarter compared to $26.1 million in the year ago period. In addition, year-end expenses for the operation were $109.6 million versus $83.6 million in 2006. Lynx took six Bombardier Q400s in the fourth quarter, ending the year with an eight-aircraft fleet.