Frontier Airlines Holdings, Inc. reported a consolidated net profit of $2.9 million in its Monthly Operating Report for November when it also reported an operating profit of $2.5 million for the month.
The results also included a loss of $2.4 million in cash settlements from fuel hedging contracts and a book gain of $4.0 million on the sale of two A319 aircraft sold in the month included in reorganizational items, offset by other reorganizational expenses of $1.2 million. Its cash position increased to $53.4 million for November 2008. The company realized net proceeds of $15.9 million from the sale of two aircraft which was offset by a $9.7 million net increase in holdbacks from the company's credit card processors and $1.8 million of additional net deposits in collateral posted to fuel hedge counterparties. November's cash balance does not include the proceeds from two aircraft sales that Frontier completed in December 2008.
"We are now seeing the changes we have made in our company over the last year start to pay dividends," said Frontier President and CEO Sean Menke. "We are successfully controlling our costs, increasing revenue and managing our cash. We feel very comfortable with our restructuring efforts moving ahead and look forward to more positive results in the future."
Companies in Chapter 11 Bankruptcy protection are required to file monthly operating reports to the U.S. Trustee in addition to quarterly reports filed with the U.S. Securities and Exchange Commission.