Frontier Close Public Offering

Frontier Airlines, Inc. (Nasdaq: FRNT) today announced that it has closed its recently announced public offering of 4,700,000 shares of common stock, and that prior to the closing, the underwriters elected to purchase an additional 350,000 shares pursuant to the over-allotment option granted in connection with the offering.
Including the exercise of the over-allotment option, net proceeds from the offering were approximately $81.1 million, 60 percent of which will be used to pay down a portion of the company`s government-guaranteed loan. As a result, the company will have approximately $11.6 million outstanding on the loan following the offering and pay down. The company intends to use the remaining proceeds for working capital and capital expenditures.
Morgan Stanley is the sole bookrunning manager on this transaction, with Merrill Lynch & Co. and Raymond James & Associates, Inc. acting as co-managers.
Currently in its tenth year of operations, Denver-based Frontier Airlines is the second largest jet service carrier at Denver International Airport with a fleet of 38 aircraft and employing over 3,500 aviation professionals. Frontier and its affiliate Frontier JetExpress currently serve 39 U.S. cities with approximately 194 daily flights.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. The offering is being made solely by means of a prospectus, copies of which may be obtained by contacting Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, NY 10036.
Legal Notice Regarding Forward-Looking Statements

- Frontier notes that this press release contains forward-looking statements and that certain information contained in this press release involves risks and uncertainties that could result in actual results differing materially from expected results. These statements include, but are not limited to, projections about the Company`s future performance, the ability to conserve financial resources while operating in a highly competitive hub, the ability to increase future revenues and the ability to achieve additional unit cost reductions. Forward-looking statements represent the Company`s expectations and beliefs concerning future events, based on information available to the Company as of the date of this press release. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: the uncertainty of leisure travel and corporate travel expenditures as we enter the historically weak period of post-summer travel; further downward pressure on airfares; unanticipated decreases in the volume of passenger traffic due to terrorist acts or additional incidents that could cause the public to question the safety and/or efficiency of air travel; negative public perceptions associated with increased security wait times at various domestic airports; the ability to secure adequate gate facilities at Denver International Airport and at other airports where Frontier operates; weather, maintenance or other operational disruptions; air traffic control-related difficulties; the impact of labor issues; actions of the federal and local governments; changes in the government`s policy regarding relief to the airline industry especially as it relates to war risk insurance; and the stability of the U.S. economy and the economic environment of the airline industry. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. Additional information regarding these and other factors may be contained in the Company`s SEC filings, including without limitation, the Company`s 10-K for its fiscal year ended March 31, 2003, the Company`s 10-Q for the quarter ended June 30, 2003, and the Company`s 8-K filed September 19, 2003.