Frontier Airlines Boasts Record Passengers
December 6, 2007 – 6:50 amIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Frontier Airlines is moving more passengers than ever before. The company has been cutting costs and laying off employees at the same time.
Frontier Airlines today announced preliminary traffic results for November 2007. Revenue passenger miles increased 22.5 percent to 788,821,000 for November 2007 from the same period last year. Available seat miles (ASMs) increased 14.1 percent to 1,009,512,000 for November 2007 from the same period last year. This resulted in a load factor for November 2007 of 78.1 percent, an increase of 5.3 points from November 2006, when the airline reported a load factor of 72.8 percent. The airline carried 832,269 passengers during November 2007, an 18.2 percent increase from November 2006. The airline reported passenger yield of 11.14 cents for the month of November 2007, a decrease of 3.0 percent from the same period last year. Its passenger
revenue per available seat mile was 8.71 cents, up 0.35 cents or 4.2 percent from November 2006. For the month of November 2007, the airline’s average length of haul increased 3.7 percent to 948 miles as compared to the same period last year.“In contrast to encouraging year over year unit revenue improvements for November and October, the cost of jet fuel has climbed 18 percent since October when we last provided an earnings estimate for the December quarter,” said Sean Menke, Frontier President and CEO. “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.
Can a company use less employees to deliver more people and still do a good job of it? That’s the question for Frontier Airlines.
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