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Sep 30, 2022
Frontier Q3 2022 Earnings Report
Reported improved profitability underpinned by record ancillary revenue per passenger and an improvement in unit costs.
Key Takeaways
Frontier Airlines reported a quarterly profit for Q3 2022, its second consecutive quarterly profit. Total operating revenue was $906 million, 35 percent higher than the corresponding quarter in 2019. Ancillary revenue per passenger during the quarter was a record $78, 38 percent higher than the corresponding quarter in 2019.
Achieved total operating revenues of $906 million, 35 percent higher than the corresponding quarter in 2019 and 44 percent higher than the corresponding quarter in 2021
Generated a record $78 of ancillary revenue per passenger during the third quarter of 2022, 38 percent higher than the corresponding quarter in 2019, 23 percent higher than the corresponding quarter in 2021 and four percent higher than the prior quarter
Realized a 6.4 percent pre-tax margin, or a 5.2 percent adjusted pre-tax margin (on a non-GAAP basis excluding special items), nearly double the adjusted pre-tax margin in the prior quarter
Ended the quarter in a strong liquidity position with $674 million of unrestricted cash and cash equivalents, or $251 million net of total debt
Revenue by Segment
Forward Guidance
The Company expects strong travel demand and continued RASM strength, with capacity anticipated to grow 15 to 17 percent versus the corresponding quarter in 2019. Adjusted pre-tax margin is anticipated to be between 3 and 7 percent (on a non-GAAP basis excluding special items).
Positive Outlook
- Strong travel demand
- Continued RASM strength
- Capacity anticipated to grow 15 to 17 percent versus the corresponding quarter in 2019
- Fuel costs are expected to be between $3.70 to $3.75 per gallon
- Adjusted total operating expenses (excluding fuel) are anticipated to be between $565 and $585 million
Challenges Ahead
- Guidance excludes special items because such amounts cannot be determined at this time.
- Guidance is subject to significant risks and uncertainties that could cause actual results to differ materially
- The Company's guidance is based on its expectation that demand will continue to recover to more normalized levels
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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