Loading...
•
Mar 31, 2024
Frontier Q1 2024 Earnings Report
Frontier Airlines reported financial results that exceeded expectations due to rigorous cost and revenue management.
Key Takeaways
Frontier Airlines reported a total operating revenue of $865 million, a 2% increase compared to Q1 2023, driven by an 8% capacity growth. The company's cost management and revenue diversification strategies contributed to better-than-expected results, with a focus on underserved, high-fare markets and network enhancements.
Total operating revenues increased by 2% to $865 million compared to Q1 2023.
Pre-tax loss was $24 million, with a margin of (2.8) percent, reflecting better cost and revenue performance.
Adjusted CASM (excluding fuel) was 6.71 cents, and stage-adjusted to 1,000 miles, was 3% lower than the comparable 2023 quarter.
The airline took delivery of six A321neo aircraft, increasing fuel efficiency and fleet composition of A320neo family aircraft to 80%.
Revenue by Segment
Forward Guidance
Frontier expects sequential improvement in adjusted pre-tax margin in Q2 2024, supported by network simplification, revenue diversification, and non-fuel cost savings. The full-year 2024 adjusted pre-tax margin is guided at 3 to 6 percent, despite higher fuel costs.
Positive Outlook
- Capacity is expected to grow by 12 to 14 percent in Q2 2024.
- Allocation of capacity to new, high-fare, underserved markets is expected to drive higher RASM as they mature.
- Adjusted total operating expenses (excluding fuel) are projected to be $705 to $720 million for Q2 2024.
- Adjusted pre-tax margin is expected to be 3 to 6 percent in Q2 2024, including the impact of higher fuel prices and network transition.
- Full-year capacity is expected to be 12 to 15 percent higher compared to 2023.
Challenges Ahead
- Fuel costs are expected to be $2.80 to $2.90 per gallon for both Q2 and full-year 2024, an increase of $0.10 per gallon from previous guidance.
- Capacity adjustments may be materially different than currently expected due to the dynamic demand environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...