Frontier Airlines today announced its eighth-straight month of operating profit in its unaudited monthly operating report for June.
Excluding special items for reorganization expenses and fuel hedge contracts, the Denver-based airline also reported its third successive quarterly profit.
An operating profit of $14.2 million in June compares with an operating loss of $3.2 million for June 2008. The report also stated net monthly income of $7.2 million compared to a $8.8 million net loss for June 2008.
“Achieving eight months of operating profit and three quarters of net profit, and one of the industry’s lowest unit costs despite double-digit capacity reductions, positions Frontier well as we move to emerge from bankruptcy later this year,” said Frontier president Sean Menke.
Frontier, the second-largest carrier at Denver International Airport, filed for Chapter 11 bankruptcy protection in April 2008.
Earlier this month, a U.S. Bankruptcy Court judge approved a proposed investment agreement with Republic Airways Holdings.
Republic has offered to purchase all of the equity of Frontier and its subsidiary, Lynx Aviation, for $108.7 million.
Frontier would become a wholly owned subsidiary of Republic, an Indianapolis-based holding company that also owns Chautauqua Airlines, Republic Airlines and Shuttle America and operates aircraft under the banners of United Express and other carriers.
Other investors have until Aug. 3 to submit proposals to outbid Republic, although industry experts don’t expect other suitors will emerge.
Ann Schrader: 303-954-1967 or aschrader@denverpost.com.
