Frontier Airlines lost $161 mn in 4Q

MINNEAPOLIS: Bankruptcy expenses drove Frontier Airlines Holdings Inc to a fourth-quarter loss of almost $161 million, but it reported an operating profit.

The small Denver-based airline said Tuesday it would have made a profit of $19.6 million if not for bankruptcy expenses and taxes. Bankruptcy expenses were almost $180 million, most of it for an unsecured claim related to a debtor-in-possession loan by Republic Airways Holdings Inc.

Revenue for the quarter was $263.9 million.

Frontier has been reorganizing under bankruptcy protection since April 10, 2008, and is currently looking for an investor to give it the financing to emerge from bankruptcy.

It ended the quarter with $71.8 million in cash, up slightly from $69 million at the end of 2008.

In Denver, Frontier competes with an increased presence from Southwest Airlines Co. as well as a United Airlines hub. It has been shrinking while it reorganizes, reducing March capacity by almost 20 percent compared with a year ago. Passenger traffic for the month fell 24 percent.

President and Chief Executive Sean Menke said in a written statement that Frontier's restructuring has "positioned us to consistently make money in the most competitive market in the country and in the face of the most trying economic times. Clearly, maintaining our low cost structure allows our operation to buck industry trends and make money in a difficult revenue environment."