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Mar 31, 2022
Frontier Q1 2022 Earnings Report
Frontier Airlines reported a net loss for the quarter, but expects a return to profitability in the second quarter, underpinned by RASM growth and ancillary revenue.
Key Takeaways
Frontier Airlines reported financial results for Q1 2022, with a net loss of $121 million. However, the company anticipates a return to profitability in Q2, driven by over 20% RASM growth compared to 2019 and $70 in ancillary revenue per passenger.
Total operating revenue was $605 million, 11% higher than the corresponding pre-COVID quarter in 2019.
Ancillary revenue per passenger was $69.28, 21% higher than the corresponding pre-COVID quarter in 2019.
The company ended the quarter with $727 million of unrestricted cash and cash equivalents.
Frontier expects RASM improvement versus the second quarter of 2019, underpinned by the performance of ancillary product offerings.
Revenue by Segment
Forward Guidance
Frontier anticipates profitability for both the second quarter and full year 2022, excluding special items. Adjusted pre-tax margin in the second quarter is expected to range between 1% and 5%.
Positive Outlook
- Adjusted pre-tax margin in the second quarter is expected to range between 1 and 5 percent.
- Capacity is anticipated to grow by 10 to 12 percent in the second quarter compared to the corresponding 2019 quarter.
- RASM is expected to improve by over 20 percent in the second quarter versus the corresponding 2019 quarter.
- Strength in demand for the balance of the year is expected to offset the forecasted fuel prices resulting in the expectation of profitability for the full year 2022, excluding special items.
- The company expects over 20% RASM improvement versus the second quarter of 2019.
Challenges Ahead
- Fuel costs are anticipated to be between $3.85 to $3.90 per gallon in Q2.
- Adjusted total operating expenses (excluding fuel) are expected to be between $545 and $555 million in the second quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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