Frontier Airlines files for bankruptcy protection
Frontier Airlines filed today for bankruptcy protection. The Airline maintains that all financial obligations will be met and flights will operate as scheduled. According to Frontier the move was brought about because the principal credit card processor is going to withhold larger amounts of the proceeds from ticket sales as of April 11.
“This change in established practices would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier’s liquidity and would have made it impossible for us to continue normal operations.” Frontier CEO Sean Menke said.
As all US Airlines, Frontier has struggled amid rising fuel prices and aggressive competition at Denver International Airport. It blamed a 16.3 per cent jump in fuel costs for a third-quarter loss that more than doubled from the previous year.
