Transportation Industry

Company Watch - Frontier Airlines

AirGuide Business, April 7, 2008

Apr 7, 2008

Frontier Airlines Holdings is the parent company of Denver-based Frontier Airlines. Currently in its 14th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing approximately 6,000 aviation professionals. Frontier Airline's mainline operation has 62 aircraft with one of the youngest Airbus fleets in North America. Frontier Airline's mainline operations offers 24 channels of DIRECTV(R) service in every seat along with a comfortable all coach configuration. In conjunction with its regional jet fleet, operated by Republic Airlines, and a fleet of ten Bombardier Q-400 aircraft operated by Lynx Aviation (a subsidiary of Frontier Airlines Holdings, Inc.), Frontier offers routes linking its Denver hub to 70 destinations, including 62 U.S. cities in 36 states spanning the nation from coast to coast; six cities in Mexico; one in Canada and one in Costa Rica. In November 2006, Frontier and AirTran announced a first-of-its-kind integrated marketing partnership that offers travelers the ability to reach more than 80 destinations across four countries with low fares, aboard two of the youngest fleets in the industry. For more in-depth information on Frontier Airlines, please visit its Web site at FrontierAirlines.com. Apr 4, 2008

Frontier Airlines Holdings, Inc. today announced preliminary traffic results for March 2008 for both Frontier's mainline operation as well as its wholly owned subsidiary, Lynx Aviation. Lynx Aviation commenced revenue service in December 2007. As such, only the current month, fiscal year ended and three months ended March 31, 2008 for the current year are presented for Lynx Aviation in the text and table below. Apr 4, 2008

Mainline revenue passenger miles increased 14.7 percent to 942,369,000 for March 2008 from the same period last year. Mainline available seat miles increased 4.5 percent to 1,117,237,000 for March 2008 from the same period last year. This resulted in a record mainline load factor for March 2008 of 84.4 percent, an increase of 7.6 points from March 2007, when the airline reported a mainline load factor of 76.8 percent. The airline carried 953,078 mainline passengers during March 2008, a 10.1 percent increase from March 2007. The airline reported mainline passenger yield of 11.81 cents for the month of March 2008, an increase of 0.7 percent from the same period last year. Its mainline passenger revenue per available seat mile was 9.96 cents, up .95 or 10.5 percent from March 2007. Apr 4, 2008

Frontier Airlines flew 744.8 million RPMs in February, up 18.1% from the year-ago month, against a 7.5% rise in capacity to 957.6 million ASMs. Load factor rose 7 points to 77.8%. Passenger yield was down 3.9% to 9.95 cents while unit revenue rose 5.6% to 7.74 cents. Mar 24, 2008

Frontier Airlines reached agreement to sell two of its 49 Airbus A319s and two of its 11 A318s to VTB Leasing, which in turn will lease them to St. Petersburg-based Rossiya Airlines. SkyWorks Leasing arranged the sale. Financial terms were not disclosed. The move is part of the Denver-based carrier's effort to modernize its fleet in the face of high energy costs. President and CEO Sean Menke characterized its recent financial losses as "clearly not acceptable" and vowed to make necessary changes. "In January we communicated a revised capacity growth plan that was driven primarily by the unprecedented rise in the cost of fuel," Menke said last week. "Part of that plan was to move forward with the delivery of the larger, 162-seat Airbus A320 aircraft while selling four of our existing aircraft, resulting in revised year-over-year growth of approximately 3%-5% in fiscal year 2009." Mar 24, 2008

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