Bankrupt Frontier Airlines reported a $28 million net loss in January, most of it tied to steep reorganization expenses and sour fuel-hedging contracts.

The large deficit breaks Frontier’s two-month string of profits and comes on the heels of a stellar December in which the Denver-based carrier posted $18 million in net income.

The homegrown carrier, however, still managed to report a $2.8 million operating profit in January, a positive sign for the fundamentals of the company. Additionally, Frontier’s net loss during the month shrinks to just $2.8 million when excluding the reorganization charges and hedging losses.

“A third straight month of solid financial performance shows we are charging in the right direction,” Sean Menke, Frontier’s chief executive officer, said in a news release. The carrier performed “exceptionally well in a seasonally slow month with the backdrop of a weakening economy.”

Frontier’s cash balance fell by $7.6 million to end the month at $61.4 million. The carrier filed for Chapter 11 bankruptcy protection last April and is now looking to secure financing to emerge by summer.