Frontier In Black For July, Continuing Profitability Streak

Frontier Airlines Holdings Inc. (FRNTQ) remained profitable in July, continuing a streak of black ink for the company while the industry continues as a whole to remain unprofitable.

The regional carrier was recently the subject of a fight over who would control Denver-based Frontier when it emerges from bankruptcy next month. Regional carrier Republic Airways Holdings Inc. (RJET) bested Southwest Airlines Co. (LUV) in an auction to buy Frontier for $108.75 million and a waiver on tens of millions of dollars of aid given to Frontier.

President and Chief Executive Sean Menke called July's results "absolutely outstanding," saying the performance was what attracted Republic and Southwest into the bidding war.

Frontier posted a profit of $17.8 million, compared to a year-earlier loss of $3.2 million. Excluding items such as reorganization costs, earnings would have been $23.1 million, compared with a $300,000 loss a year ago.

While capacity fell 16%, passenger revenue per available seat mile - a key industry measurement - dropped 9.9%. Many carriers have been posting sizable declines for that metric as fare prices have slumped.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]