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Dec 31, 2024
Frontier Q4 2024 Earnings Report
Reported solid fourth quarter financial results on record revenue.
Key Takeaways
Frontier Airlines reported record fourth-quarter revenue of $1.0 billion, a 12% increase year-over-year, driven by disciplined capacity deployment and revenue initiatives. Pre-tax margin was 5.1 percent and the company ended the year with $935 million in total liquidity.
Pre-tax margin and adjusted (non-GAAP) pre-tax margin were both 5.1 percent for the fourth quarter
Ended the year with $935 million of total liquidity, bolstered by the Company's undrawn revolving line of credit, representing approximately 25 percent of trailing twelve month revenue compared to 17 percent at the end of 2023
RASM was 10.23 cents, 15 percent higher than the comparable 2023 quarter
Total operating revenues were $1.0 billion, a record for any quarter in Frontier's history and 12 percent higher than the comparable 2023 quarter, on 2 percent lower capacity
Forward Guidance
Frontier's revenue and network initiatives are continuing to gain momentum, which, along with the Company's significant cost advantage, are expected to be the foundation for margin expansion in full-year 2025 compared to full-year 2024. The Company expects continued disciplined capacity allocation between peak and off-peak days to align with travel demand patterns and contribute to revenue and RASM growth in 2025.
Positive Outlook
- Achieving double-digit adjusted pre-tax margins in the summer of 2025
- Adjusted (non-GAAP) diluted earnings per share breakeven to $0.07
- Adjusted (non-GAAP) diluted earnings per share at least $1.00
- Average fuel cost (including fuel taxes and into-plane costs) of $2.60 per gallon for the first quarter of 2025
- Estimated weighted average diluted shares outstanding of 230 million shares in the first quarter 2025
Challenges Ahead
- Significant risks and uncertainties that could cause actual results to differ materially
- The Company is unable to reconcile these forward-looking projections to GAAP as the nature or amount of such special items cannot be determined at this time.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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