Frontier Airlines Holdings Inc. (FRNTQ) remained profitable in
July, continuing a streak of black ink for the company while the
industry continues as a whole to remain unprofitable.
The regional carrier was recently the subject of a fight over
who would control Denver-based Frontier when it emerges from
bankruptcy next month. Regional carrier Republic Airways Holdings
Inc. (RJET) bested Southwest Airlines Co. (LUV) in an auction to
buy Frontier for $108.75 million and a waiver on tens of millions
of dollars of aid given to Frontier.
President and Chief Executive Sean Menke called July's results
"absolutely outstanding," saying the performance was what attracted
Republic and Southwest into the bidding war.
Frontier posted a profit of $17.8 million, compared to a
year-earlier loss of $3.2 million. Excluding items such as
reorganization costs, earnings would have been $23.1 million,
compared with a $300,000 loss a year ago.
While capacity fell 16%, passenger revenue per available seat
mile - a key industry measurement - dropped 9.9%. Many carriers
have been posting sizable declines for that metric as fare prices
have slumped.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com