Frontier Airlines on Thursday reported an operating profit for May, marking its seventh consecutive monthly profit.
The Denver-based carrier, operating under bankruptcy protection, said in its unaudited monthly operating report it had a consolidated operating profit of $11.7 million for the month, compared with an operating loss of $16.5 million in May 2008.
Frontier also said it had total consolidated net income of $1.1 million in May, compared with a net loss of $22 million in May 2008.
Excluding special items, Frontier said it would have reported a $5.6 million net profit, 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 reorganization 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-hedging 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, saying its credit-card processor — First Data Corp. of Greenwood Village — raised the percentage it takes from Frontier’s credit-card transactions.
The Republic deal would allow Frontier to emerge from bankruptcy.
Ann Schrader: 303-954-1967 or aschrader@denverpost.com
