For the seventh-consecutive month, Frontier Airlines today reported an operating profit for May.
The Denver-based carrier said in its unaudited monthly operating report that it had a consolidated operating profit of $11.7 million, compared with an operating loss of $16.5 million in May 2008.
Frontier also said it had a total consolidated net income of $1.1 million in May, compared with a net loss of $22 million in the same period in 2008.
Excluding “special items,” Frontier said it would have reported a $5.6 million net income, or a net margin of 6.3 percent in May, compared with a net loss of $4.9 million, or a negative margin of 4.1 percent in May 2008.
Excluding special items, the operating profit for May was $7.6 million versus an operating loss of $2.5 million in May 2008.
Special items in May included: reorganizational costs of $8.5 million, including a book loss of $7.5 million on an aircraft sale; a charge of $200,000 related to the retirement of debt for an aircraft sold during the month; and an unrealized mark-to-market gain of $4.2 million on fuel-hedge contracts.
On Monday, Republic Airways Holdings agreed to buy Frontier and its subsidiary, Lynx Aviation, for $108.7 million.
The deal, which would make Frontier a wholly owned subsidiary of Republic, is subject to approval by the U.S. Bankruptcy Court of the Southern District of New York. A July 13 hearing has been set.
Frontier filed for Chapter 11 bankruptcy protection in April 2008. The Republic deal would allow Frontier to emerge from bankruptcy.
Frontier’s operational results for the month of May 2009 included a 14.9 percent year-over-year mainline capacity reduction.
Ann Schrader: 303-954-1967 or aschrader@denverpost.com
