Republic raises unit revenue growth forecast for Frontier

Washington DC
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Republic Airways Holdings has raised its unit revenue growth guidance for Frontier Airlines for the fourth quarter of 2011.

It now projects for the total revenue per available seat mile (TRASM) to grow between 10% and 11%, up from between 8% and 9% previously.

"Our record load factors on Frontier in each month of the fourth quarter, coupled with strong unit revenue growth, led to revenue performance that outpaced not only our previous expectations, but most of the industry as well," said Republic Airways Holdings CEO, Bryan Bedford.

The carrier also revised upwards its guidance on year-end unrestricted cash to a range of $215 million to $220 million, from $200 million to $210 million.

Republic added that it expects a non-cash impairment charge of about $4.5 million to $5 million per aircraft related to the removal of 42 Embraer regional jets from branded flight operations during the fourth quarter.

It also anticipates "significant non-cash charges" of about $24 million on aircraft to be returned to lessors in 2012, and a $7 million non-cash charge for the renegotiation of an Embraer E190 purchase agreement and the early return of certain Embraer aircraft.

Republic plans to release its fourth quarter financial results in the last week of February.