Goldman Sachs Cuts Frontier Airlines and Ups Midwest Air Group

Sees revenue gains accelerating at Midwest Air Group and decelerating at Frontier Airlines

Goldman Sachs downgraded Frontier Airlines (FRNT ) to in-line from outperform, while upgrading Midwest Air Group (MEH ) to outperform from in-line.

Analyst Glenn Engel says that unit revenue gains are accelerating in Midwest Air Group's markets, but decelerating in Frontier Airlines's markets. The analyst narrows a $2.75 Midwest Air Group 2005 earnings per share loss estimate to $2.50 loss and a $2.00 2006 loss estimate to $1.00 loss, while revising a $1.00 2007 loss estimate to 25 cents earnings per share. For Frontier Airlines, Engel sees 25 cents fiscal year 2006 (ending March) earnings per share, 30 cents in fiscal year 2007, and 80 cents in fiscal year 2008.

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