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Dec 31, 2022
Frontier Q4 2022 Earnings Report
Frontier reported a profitable fourth quarter in 2022, driven by strong revenue and cost performance.
Key Takeaways
Frontier Airlines reported a profitable fourth quarter of 2022, with total operating revenues of $906 million, a 38% increase compared to 2019. The company achieved record ancillary revenue per passenger and improved unit costs. Pre-tax income was $50 million, with an adjusted pre-tax margin of 5.7%.
Total operating revenues reached $906 million, 38% higher than 2019.
Record ancillary revenue of $82 per passenger, 41% higher than 2019.
CASM (excluding fuel) was 6.43 cents, and adjusted (non-GAAP) CASM (excluding fuel) was 6.40 cents.
Pre-tax margin of 5.5% and an adjusted (non-GAAP) pre-tax margin of 5.7%.
Revenue by Segment
Forward Guidance
Frontier provided guidance for Q1 2023 and full-year 2023, anticipating capacity growth and unit cost efficiencies. Elevated fuel prices and seasonal travel patterns are expected to result in an adjusted pre-tax loss in Q1.
Positive Outlook
- Capacity is anticipated to grow 17% to 19% in the first quarter of 2023 compared to the 2022 quarter.
- Full-year capacity is expected to grow 23% to 28% over 2022.
- Adjusted (non-GAAP) CASM (excluding fuel) to be below six cents during the second half of 2023.
- Adjusted (non-GAAP) CASM (excluding fuel) to be modestly above six cents for the full year.
- Effective tax rate for both the first quarter and full-year 2023 is estimated to be approximately 24 percent.
Challenges Ahead
- The first quarter 2023 guidance is based on the Company's current estimates and is not a guarantee of future performance.
- This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially.
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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