Frontier Airlines reported a net loss of US$20.4 million for its fiscal year ended March 31, widened from a net loss of US$14 million for the prior year, with more than half of the deficit (US$10.4 million) coming in the fourth quarter as severe winter weather hurt the Denver-based carrier's operations.

"This quarter was one of the toughest we have faced financially as we continued to suffer the impacts of the winter storms in Denver that began in December 2006 and carried through into January 2007, and we were hampered throughout the quarter by adverse weather around the US," President and CEO Jeff Potter said. "Simultaneously, we saw weakening demand across the domestic industry that carried through into April combined with a resurgence of historically high fuel prices."

FY revenue increased 17% to US$1.17 billion as expenses climbed 18% to US$1.18 billion, producing an operating loss of US$9.8 million, widened from US$7.9 million in the year-ago quarter.

Mainline traffic grew 14.7% to 8.53 billion RPMs on a 14.4% lift in capacity to 11.31 billion ASMs, producing a load factor of 75.4%, up 0.2 point. Yield was ahead 3.3% to 12.62 cents as RASM rose 3.6% to 9.52 cents and CASM lifted 3.9% to 9.49 cents. CASM excluding fuel increased 2.9% to 6.46 cents.

Potter said Frontier remains on track to launch subsidiary Lynx Air, which is slated to serve nine destinations by year end.