Frontier Group Holdings Inc

Latest Results (14.08.2024):

Revenue Performance

Total operating revenue for Frontier Group Holdings Inc. in the second quarter of 2024 increased by 1 percent to $973 million, compared to the corresponding quarter in 2023. This growth was driven by a 13 percent increase in capacity. Departures rose by 26 percent, while the average stage length decreased by 13 percent to 899 miles. Total revenue per passenger was $109, and the flown load factor was 78.1 percent. Revenue per available seat mile (RASM) was 9.21 cents, 11 percent lower than the same quarter in 2023.

Cost Performance

Frontier Group Holdings Inc. reported total operating expenses of $948 million for the second quarter of 2024, including $288 million in fuel expenses at an average cost of $2.84 per gallon. Adjusted total operating expenses (excluding fuel) were $660 million. The company achieved annual run rate cost savings of more than $100 million since launching a cost savings program in the third quarter of 2023. CASM was 8.98 cents, 6 percent lower than the comparable 2023 quarter, while CASM (excluding fuel) was 6.24 cents, 10 percent lower than the 2023 quarter.

Earnings

Frontier Group Holdings Inc. reported pre-tax income and adjusted (non-GAAP) pre-tax income of $32 million for the second quarter of 2024, reflecting a pre-tax margin of 3.3 percent. Net income and adjusted (non-GAAP) net income for the quarter were both $31 million. This performance highlights the company's ability to navigate industry challenges and maintain profitability.

Cash and Liquidity

As of June 30, 2024, Frontier Group Holdings Inc. had unrestricted cash and cash equivalents totaling $658 million. Cash net of debt was $206 million, which is $50 million higher than the amount reported on March 31, 2024. This strong liquidity position provides the company with financial flexibility to support its operations and growth initiatives.

Fleet

As of June 30, 2024, Frontier Group Holdings Inc. operated a fleet of 148 Airbus single-aisle aircraft, all financed through operating leases. The fleet includes 82 A320neo, 8 A320ceo, 21 A321ceo, and 37 A321neo aircraft. The company took delivery of six A321neo aircraft during the second quarter, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 80 percent. Frontier has commitments for an additional 198 aircraft to be delivered through 2029.