The parent company of Frontier Airlines reported Tuesday that revenues were up in the second quarter, but officials blamed fuel prices that were 44.3 percent higher for a loss of nearly $15 million.
In the second quarter of 2010, Republic Airways made $2.6 million. Frontier’s income increase of 10.6 percent over the same period last year was primarily responsible for Republic Airways’ operating revenues rising 8.3 percent over the second quarter of 2010.
Republic Airways chief executive Bryan Bedford said in a conference call with analysts that his goal is to return Frontier “to sustained profitability,” even with high fuel prices.
“I believe we’re going to fix this business, and there’s a benefit to the stockholders,” Bedford said.
On Tuesday, Republic Airways stock closed at a 52-week low of 4.01.
Frontier is the focus of a $120 million restructuring program that includes pay and other benefit concessions from its pilots union, major cost-cutting efforts and attraction of new money for operations.
The restructuring, which began in June after Frontier lost $55 million in the first quarter, is more than 80 percent complete, Bedford said.
Another piece fell into place Tuesday with the announcement that Frontier’s nearly 1,000 flight attendants had agreed to concessions similar to the pilots’ in their collective-bargaining agreement. The provisions will save the company an estimated $16 million in labor costs over four years. In exchange, the pilots and flight attendants will receive equity in Frontier and be eligible for profit- sharing. Republic has agreed to become a minority owner by the end of 2014.
Third-quarter bookings are strong, said Bedford, who added there has been a “fabulous response” to Frontier’s Colorado Day fare sale that began Monday and ends at 9:59 p.m. today.
Ann Schrader: 303-954-1967 or aschrader@denverpost.com
