Loading...
•
Jun 30, 2022
Frontier Q2 2022 Earnings Report
Reported profitable results driven by record revenue growth and ancillary revenue.
Key Takeaways
Frontier Airlines reported a profitable second quarter of 2022, achieving record revenue growth of 43% compared to pre-COVID levels in 2019. The company's strong revenue performance, driven by high demand and record ancillary revenue, offset the impact of high fuel prices and other cost inflation, resulting in a net income of $13 million and an adjusted net income of $20 million.
Total operating revenues reached $909 million, a 43% increase compared to the second quarter of 2019.
Ancillary revenue per passenger hit a record $75, up 33% from the second quarter of 2019.
The company ended the quarter with $766 million in unrestricted cash and cash equivalents.
Frontier operated the most fuel-efficient fleet among major U.S. carriers, generating 100 ASMs per gallon.
Revenue by Segment
Forward Guidance
Frontier anticipates record revenue in Q3 2022, with RASM growth exceeding 20% compared to Q3 2019. Capacity is projected to increase by 8-10% compared to Q3 2019, with full-year capacity expected to grow by 12-15% versus 2019. Adjusted pre-tax margin is anticipated to be between 1% and 5%.
Positive Outlook
- Record revenue expected in the third quarter of 2022.
- RASM growth of over 20% compared to the third quarter of 2019.
- Capacity growth of 8% to 10% in the third quarter compared to 2019.
- Pre-tax profitability expected for the third quarter, excluding special items.
- Expansion of adjusted pre-tax margins is expected in the fourth quarter and beyond.
Challenges Ahead
- Fuel costs are anticipated to be between $3.75 to $3.80 per gallon.
- Adjusted total operating expenses (excluding fuel) are expected to be between $565 to $585 million in the third quarter.
- Guidance is subject to significant risks and uncertainties.
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...