Frontier Reports $20.4 Million Loss for Fiscal 2007

Frontier Airlines Holdings, Inc. reported a net loss of $20.4 million for its fiscal year ended March 31, 2007. This compares to a net loss of $14.0 million for the year ended March 31, 2006.

Included in the company’s net loss for the year ended March 31, 2007 was a non-cash valuation allowance on net deferred tax assets of $4 million offset by a non-cash mark to market fuel derivative gain which decreased pretax fuel expense by $12.8 million and $0.7 million in pretax gains relating to the sale of Boeing parts held for sale.

These items, net of income taxes, decreased the company’s net loss for the year ended March 31, 2007 by $0.12 per share. Included in the company’s net loss for the year ended March 31, 2006 were the following items before the effect of income taxes: aircraft lease and facility exit charges of $3.4 million primarily relating to three leased Boeing 737-300 aircraft that the company ceased using during the year, a non-cash mark to market fuel derivative loss which increased pretax fuel expense by $2.2 million which was offset by gains of $1.1 million related to the sale of being parts held for sale and other assets.

These items, net of income taxes, increased the company’s net loss for the year ended March 31, 2006 by $0.08 per share. For Frontier’s fiscal fourth quarter ended March 31, 2007, the airline reported a net loss of $10.4 million, or $0.29 per common share, compared to a net loss of $7.9 million, or $0.22 per common share, for the same period last year.

Included in the company’s net loss for the quarter ended March 31, 2007 was a $15.1 million pretax non-cash mark to market fuel derivative gain, which was offset by a non-cash valuation allowance on net deferred tax assets of $3.9 million.

This item, net of income taxes, reduced the company’s net loss for the quarter by $0.14 per share. The fiscal fourth quarter 2006 results, on a pretax basis, included a $0.1 million unrealized fuel derivative gain and a $0.2 million gain from the sale of spare parts and inventory. These items, net of income taxes, did not impact the company’s net loss per share.