Frontier Posts Quarterly Loss, Mulls Fleet Changes | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

Airborne Hi-Def On YouTube

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

Fri, Dec 07, 2007

Frontier Posts Quarterly Loss, Mulls Fleet Changes

May Delay Airbus Order Due To Rising Fuel Prices

Frontier Airlines announced Wednesday it now expects to post a loss of as much of 68 cents per share this quarter, due mainly to unforeseen increases in the price of fuel.

The airline also announced it will respond by eliminating 100 corporate jobs in Denver. Pilots and flight attendants would be unaffected by the cuts, reports the Denver Business Journal.

"We are also evaluating our fleet size and future aircraft deliveries to ensure the fleet is 'right-sized' to endure this difficult cost environment," said Frontier CEO and President Sean Menke.

Ironically, the discouraging financial news came in the same press release as news that Frontier saw revenue passenger miles in November which may set a monthly record, at almost 789 million.

That doesn't really help, though, when the airline is making less on more fliers, due to fuel prices.

"The cost of jet fuel has climbed 18 percent since October when we last provided an earnings estimate for the December quarter," Menke said. "Even though we are 40 percent hedged in the December quarter with crude oil derivatives, our current estimate of the price of fuel for the December quarter of $2.53 is a 17.7 percent year over year increase. In light of this significant increase to our operating costs, we are revising our previous guidance and we now anticipate a pre-tax loss for the December quarter in the range of $.58 - $.68 cents per share excluding special items."

Frontier operates a fleet of 60 Airbus A318, A319 and A320 aircraft, and ordered 10 Bombardier Q400 turboprops to start launch its new Lynx subsidiary, serving Wichita, Rapid City, Albuquerque and Billings.

Airline spokesman Joe Hodas says the Q400 order for Lynx will not be cut, but a pending order for 10 Airbus A320s for Frontier will be evaluated.

FMI: www.frontier.com

Advertisement

More News

Airborne 05.25.16: Canada SeaPlane Regs, Blimp Downed, Citation Longitude Mated

Also: USAF Hassled, Hummel UltraCruiser, Helo Limits, FAA Video, Greg Connell Accident, Medical Helo Suit, Bombardier's 100th VistaJet Canada is proposing changes to their seaplane>[...]

Icon Steps Back, Admits Curtailed Production Plan

Finally Talking (And Still Hyping), Icon Production Plans Take A Big Hit The following is the text of a release from Icon Aircraft (bluster and all)... ANN Analysis and industry re>[...]

Solar Impulse 2 Is En Route To Lehigh Valley, PA

Atlantic Crossing Next Major Hurdle Solar Impulse 2 (Si2) departed Dayton (OH) International Airport with Bertrand Piccard at the controls, this morning at 0402 local time (UTC-4).>[...]

Icon Controversy Continues, But Icon Has Yet To Speak Up

The Company That Won't Answer Questions, May Finally Have To Do So ANN has been bombarded with info and reports concerning the health and well-being of the Icon Aircraft program...>[...]

ANN's Daily Aero-Linx (05.26.16)

Safety Management System (SMS) This FAA website was created as a public resource for those seeking to learn more about SMS within the aviation industry and the FAA.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC