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Mar 31, 2023
Frontier Q1 2023 Earnings Report
Frontier Airlines reported record first quarter revenue driven by strong RASM growth and ancillary revenue.
Key Takeaways
Frontier Airlines reported a record first quarter total operating revenue of $848 million, a 40% increase compared to Q1 2022. The company's RASM increased by 19% and ancillary revenue per passenger reached $80. Despite the revenue growth, Frontier experienced a net loss of $13 million and a pre-tax loss of $17 million.
Total operating revenues reached $848 million, a record for any first quarter in company history.
Ancillary revenue was $80 per passenger, $11 higher than the 2022 quarter.
Pre-tax margin was (2.0) percent and adjusted pre-tax margin was (1.9) percent.
Ended the quarter with $790 million of unrestricted cash and cash equivalents.
Revenue by Segment
Forward Guidance
Frontier anticipates capacity growth of 22% to 24% in the second quarter of 2023 compared to Q2 2022. The adjusted pre-tax margin is expected to be in the range of 7% to 10% for the second quarter and 7% to 9% for the full year 2023.
Positive Outlook
- Capacity growth is expected to be 22% to 24% in Q2 2023 compared to Q2 2022.
- Adjusted total operating expenses (excluding fuel) are anticipated to be $645 to $665 million for Q2 2023.
- The effective tax rate for Q2 2023 is estimated to be approximately 24%.
- Adjusted pre-tax margin is expected to be in the range of 7% to 10% for Q2 2023.
- Full-year capacity is anticipated to grow 19% to 22% over 2022.
Challenges Ahead
- Fuel costs in the second quarter are expected to be $2.65 to $2.75 per gallon.
- Full-year fuel costs are expected to be $2.80 to $2.90 per gallon.
- Adjusted total operating expenses (excluding fuel) for the full year are anticipated to be $2,500 to $2,550 million.
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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