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Frontier to post $59 million loss

By Chris Walsh, Rocky Mountain News (Contact)

Published June 16, 2008 at 11:49 a.m.

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By Chris Walsh

ROCKY MOUNTAIN NEWS

Frontier Airlines said today it will report a $59.4 million net loss for fiscal 2008, which ranks as the carrier’s largest annual deficit ever.

Denver-based Frontier revealed the information in a document informing the Securities and Exchange Commission that it will miss the deadline to file its year-end financial report. The carrier said it needs additional time to complete the report because of its recent bankruptcy filing.

Frontier had until today to file results for its 2008 fiscal year, which ended March 31. It’s now aiming to complete the report by the end of June.

Frontier’s loss, which equates to $1.62 loss per diluted common share, compares with a $20.4 million deficit during the previous year.

The carrier didn’t release figures for its fourth quarter. But, based on the full-year numbers, Frontier lost an estimated $40.7 million during the quarter.

The company said in the filing that its mainline fuel costs during fiscal 2008 rose 12 percent.

“That loss dealing with three major factors, and obviously number one was oil,” said Frontier spokesman Steve Snyder.

He also mentioned costs associated with its Lynx Aviation subsidiary and high expenses tied to an agremeent with Republic Airways. Frontier won’t incur those one-time Lynx costs going forward, and it has since terminated its contract with Republic.

“I think we’ve made signficiant strides in our cost structure, however fuel is still the ultimate wild card in all of this,” Snyder said.

Frontier filed for bankruptcy in April, less than two weeks after its fiscal year ended.

The company is now required to release monthly operating reports while in bankruptcy. Its first report - filed last month - showed a $16.5 million loss during a three-week period in April.