You Will Never Believe These Bizarre Truth Of 10a Of Income Tax Act – 200a Of Income Tax Act
DENVER (Feb. 5, 2003) å- Frontier Airlines, Inc. (Nasdaq: FRNT) today appear a budgetary third division 2003 net accident of $6.2 million, or $0.21 per accepted share, compared with net ets of $909,000, or $0.03 per erated accepted share, for the airlineå‘s budgetary third division aftermost year. Year over year budgetary third division comparisons are impacted by the contest of the 9/11 agitator attacks. The airlineå‘s budgetary third division 2003 included a appropriate allegation of $1.1 million, net of ta, for the aboriginal concealment of debt accompanying to the debt retirement of an Airbus A319 awash and busy aback to the Company. Excluding this appropriate item, the airlineå‘s budgetary third division 2003 net accident totaled $5.1 million, or $0.17 per accepted share, compared to a $1.4 actor net accident for the aforementioned aeon aftermost year; excluding $3.8 million, pretax, accustomed from the Air Transportation Safety and Stabilization Act; a $918,000 address down, net of ta, for the accustomed amount of additional ia that abutment the Companyå‘s Boeing 737-200A aircraft; and, an $886,000 acclaim to the Companyå‘s ets tax expense.
Chief Executive Officer’s Comments:Frontier President and CEO Jeff Potter said, “We are aghast with our budgetary third division results, and acutely Frontier continues to accomplish in an ambiance of beneath appeal consistent from a abiding bread-and-butter downturn, all-around uncertainties and an ambiguous and acutely aggressive industry environment. The ablaze atom in our achievement can already afresh be activate in our emblage amount reductions. Those results, aculated with a almost able biking aeon over the anniversary season, enabled us to accomplish profitably during the ages of December, befitting in apperception that one of the busiest canicule ociated with the Thanksgiving biking aeon fell in the ages of December 2002. Long forward, in ablaze of the difficult acquirement ambiance accompanying with aerial ammunition costs, both of which are accepted to abide for the accountable future, we now ahead adver a budgetary fourth division 2003 accident in the ambit as our budgetary third division loss.”
Operating and Banking Highlights:The airline’s traffic, as abstinent by acquirement commuter afar (RPMs), grew at a amount of 71.2 percent during budgetary third division 2003, while accommodation growth, as abstinent by accessible bench afar (ASMs), added by 50.9 percent, from the aforementioned time aftermost year. As a result, the airline’s amount agency was 59.5 percent for its budgetary third quarter, an access of 7.1 amount agency credibility compared to aftermost year’s amount agency of 52.4 percent during the aforementioned time period. During budgetary third division 2003, the airline’s breakeven amount agency added 9.3 amount agency credibility from 54.3 percent to 63.6 percent.
The airline’s amount per accessible bench mile (CASM) for the division decreased 11.3 percent to 8.28 cents from 9.34 cents for the aforementioned division aftermost year. CASM excluding ammunition decreased 16.2 percent to 6.84 cents from the aforementioned aeon aftermost year back CASM excluding ammunition was 8.17 cents. The airline appear aircraft appliance of 9.5 hours during its budgetary third division 2003, a 22.2 percent access from 7.8 hours during the aforementioned aeon aftermost year.
Chief Banking Officer Paul Tate said, “We accomplished a ammunition ambiguity affairs in backward November 2002, which accustomed us to abate ammunition costs in the ages of December 2002, on a pretax basis, by $68,067. We additionally accept entered into acquired affairs accoutrement about 15 percent of our jet ammunition requirements through May 2003 at an boilerplate amount of $0.77 per gallon.”
The Company accounts for the acquired affairs entered into as trading affairs beneath FAS133, and accordingly annal any settlements accustomed or paid as an acclimation to the amount of fuel. Changes in the fair amount of the affairs attributable to approaching prices are recorded as nonoperating income. As a result, the budgetary third division 2003 after-effects accommodate an abeyant barrier accretion of $237,933 in nonoperating income. There were no ammunition hedges in aftereffect beforehand in the budgetary third division 2003 or in the budgetary third division 2002.
For the division ured Dec. 31, 2002, the airline’s boilerplate amount of ammunition was $0.97 per gallon, including ta, into-plane flowage fees. On average, ta, into-plane fees and flowage fees are about $0.15 per gallon.
The airline appear revenues of $120.3 actor during its budgetary third division 2003, a 29.9 percent access over the aforementioned aeon aftermost year, back the airline appear acquirement of $92.6 million. Commuter acquirement per commuter mile (yield) for the airline’s third budgetary division 2003 decreased 23.6 percent to 12.93 cents from 16.93 cents for the aforementioned aeon aftermost year. Commuter acquirement per accessible bench mile (RASM) for the division decreased 13.4 percent to 7.69 cents from 8.88 cents for the aforementioned aeon aftermost year. The airline’s boilerplate book during its budgetary third division 2003 was $111, a 17.2 percent abatement from its budgetary third division 2002, back the boilerplate book was $134.
Business Developments During the Division Included:? Accustomed codicillary approval from the Air Transportation Stabilization Board (ATSB) for a $63 actor federal accommodation acceding of a $70 actor bartering accommodation facility;? Signed a acquirement and abiding casework acceding with LiveTV to install satellite-receiving accessories that will accompany DIRECTV AIRBORNE? accessory programming to every Airbus seatback by the end of February 2003;? Accepted commitment of four 132-seat Airbus A319 aircraft;? Launched countdown all-emcing account to Cancun and Mazatlan, Mexico;? Inaugurated account to Fort Myers, Fla., Oklahoma City, Okla., and Tucson, Ariz., and discontinued account to Boston, M.;? Inaugurated Frontier JetExpress service, operated by Mesa Airlines, Inc., to
200a Of Income Tax Act