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Frontier Air Cuts Outlook

The company says it was hurt by reduced demand in September.
Author:

Frontier Airlines

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cut its earnings estimates Thursday, saying it was hurt by reduced demand in September.

"Like the majority of the industry, we were not immune to the effects of the terrorist incident in early August, which clearly affected passenger travel primarily in the month of September," said CEO Jeff Potter in a prepared statement.

Frontier had expected earnings of 10 cents a share in the quarter ended Sept. 30, but reduced its estimate to between 1 cent and 5 cents.

The carrier's load factor was 67.6% for September, down 3.4 points from the same month a year earlier. Revenue per available seat mile was 7.02 cents, down 4.2%. Potter said earnings for the quarter ending Dec. 30 "are strengthening, and we expect to continue to report positive year-over-year unit revenue improvement."

Frontier shares fell sharply, trading down 11.5% to $7.84. The Amex Airlines index lost 1.2%.

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On Wednesday,

AirTran Airways

(AAI)

and

US Airways

(LCC)

both said their September performances were diminished, but their outlooks were favorable.

They didn't reduce their earnings estimates, although AirTran last month lowered its third-quarter RASM forecast.