Denver-based Frontier Airlines marked its third consecutive month of profitability after posting $7.2 million in net income in June following profitable months in April and May.
Last month's performance compares to Frontier's net loss of $8.8 million in June 2008 and is the fifth time Frontier has achieved profitability since entering Chapter 11 Bankruptcy protection in April 2008-it also reported profits last November and December.
Excluding special items primarily due to $5.4 million in reorganization costs, Frontier would have posted a $12.5 million profit. That figure contrasts with Frontier's June 2008 net loss of $5.5 million, excluding $3.4 million in reorganization costs.
The carrier has published monthly financial updates since entering Chapter 11, as is required, and its latest report also touts an eighth consecutive monthly operating profit.
The carrier's June revenues outpaced expenses propelling the carrier to a $14.2 million operating profit, compared to an operating loss of $3.2 million for the same period last year.
The carrier's expenses fell in June fell toto $86.4 million from $135.2 million as mainline fuel costs dropped roughly 61% to $24.4 million.
Frontier's revenues dropped to $100.6 million in June from $132.1 million in June 2008.
At the same time, the operator posted declines in both mainline passenger revenue per available seat mile (PRASM) and mainline unit revenue (RASM).
Frontier's PRASM was 14.5% lower than in June 2008 while RASM dropped 10% from the year prior.
Frontier also ended June 2009 with $69.4 million in cash and cash equivalents, a 17% increase compared to the $59.3 million the carrier reported in June 2008.
In addition to monthly results, Frontier also posted quarterly figures. Its second quarter net income of $12.6 million is an improvement from the $57.7 million loss it recorded for the period last year.
Excluding special items primarily driven by $14.9 million in reorganization expenses, the airline would have reported a second quarter net income of $27.6 million, which contrasts to a net loss of $49 million excluding special items for the year-prior primarily driven by $8.8 million in reorganization costs.
Frontier also reported a second quarter operating profit of $33 million compared to an operating loss of $41.5 million for the second quarter last year as sales outpaced expenses.
Frontier's latest financial results follow regional operator Republic Airways Holdings receiving bankruptcy court approval to purchase 100% of equity in a reorganised Frontier.
Republic is a former partner to Frontier, operating 12 Embraer E-170s from Frontier's Denver hub until June of 2008. Frontier ended the air services agreement after filing for bankruptcy protection.
Source: Air Transport Intelligence news
