Frontier Airlines Announces First Fiscal Quarter Earnings Estimate

Frontier Airlines (Nasdaq: FRNT) today announced that it expects its earnings per share (EPS) for its first fiscal quarter ending June 30, 2001 to fall within the range of $0.28 and $0.38 per fully diluted share, as compared to $0.57 per fully diluted share for the same period last year adjusted for the Company`s 3-for-2 stock dividend. The airline reported total revenue per available seat mile (RASM) of 10.94 cents for the month of April 2001; operating cost per available seat mile excluding fuel (CASM ex fuel) of 8.44 cents; and fuel cost per available seat mile of 1.46 cents. This resulted in a total cost per available seat mile (CASM) of 9.90 cents. The airline`s average fare for the month of April 2001 was $138, a decrease of 5.5 percent from April 2000, when the airline`s average fare was $146.

“Although April traffic was very strong, softening close-in bookings are likely to produce a load factor in May slightly below last year`s levels. We are also experiencing a decrease in our yields as passengers opt for the many sale fare opportunities in the marketplace. It seems apparent that the value market continues to expand as a result of the weakening economy, and as a result, Frontier continues to enjoy relatively strong demand by value-oriented consumers,” said Frontier President Sam Addoms. “In addition, we anticipate that our costs for the Airbus transition will peak in our current June quarter. Overall, our costs should moderate in the September and subsequent quarters. We remain optimistic about Frontier`s performance relative to other carriers in our industry.”

Frontier provides capacity and other data and industry comparisons on its Web site, which may be viewed at The historical information, earnings estimates and other projections contained herein and on the airline`s Web site speak only as of June 1, 2001 and are not being made as of any later date, unless noted. Shareholders and other interested parties are advised to check the airline`s Web site for updated information. The historical information is subject to review and adjustment, and earnings estimates and other projected information are subject to review and adjustment and all the risks and uncertainties associated with projections. Actual results may differ materially. See the cautionary language below.