NASDAQ$ULCC

Frontier Group Holdings Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Frontier Airlines reported a net loss for the quarter, but expects a return to profitability in the second quarter, underpinned by RASM growth and ancillary revenue.

Frontier Airlines reported financial results for Q1 2022, with a net loss of $121 million. However, the company anticipates a return to profitability in Q2, driven by over 20% RASM growth compared to 2019 and $70 in ancillary revenue per passenger.

  • Total operating revenue was $605 million, 11% higher than the corresponding pre-COVID quarter in 2019.
  • Ancillary revenue per passenger was $69.28, 21% higher than the corresponding pre-COVID quarter in 2019.
  • The company ended the quarter with $727 million of unrestricted cash and cash equivalents.
  • Frontier expects RASM improvement versus the second quarter of 2019, underpinned by the performance of ancillary product offerings.

Headline financials

Total Revenue

$605M

Previous: $271M+123.2%
EPS (adj)

-$0.50

Previous: -$0.86+41.9%
Load Factor

74.2%

Previous: 69.9%+6.2%
Free Cash Flow

-$121M

Previous: -$91M-33.0%
Net Income

-$121M

Previous: -$91M-33.0%
Operating Income

-$153M

Previous: -$92M-66.3%
Gross Profit

-$448M

Previous: -$292M-53.4%
Cash & Equivalents

$727M

Previous: $429M+69.5%
Total Assets

$4.14B

Previous: $3.68B+12.4%
Stock-Based Comp

$3M

Previous: $3M+0.0%

Revenue & EPS history

Frontier · Revenue · Quarterly

$605M

Q1 2022+123.2%vs Q1 2021
Beat estimate in 3 of 8 quarters(38%)
ActualEstimate

Revenue by segment

Frontier · $605M total across 2 segments · Q1 2022

  • Passenger
    $588M
  • Other
    $17M

Forward guidance

Frontier anticipates profitability for both the second quarter and full year 2022, excluding special items. Adjusted pre-tax margin in the second quarter is expected to range between 1% and 5%.

Tailwinds

  • Adjusted pre-tax margin in the second quarter is expected to range between 1 and 5 percent.
  • Capacity is anticipated to grow by 10 to 12 percent in the second quarter compared to the corresponding 2019 quarter.
  • RASM is expected to improve by over 20 percent in the second quarter versus the corresponding 2019 quarter.
  • Strength in demand for the balance of the year is expected to offset the forecasted fuel prices resulting in the expectation of profitability for the full year 2022, excluding special items.
  • The company expects over 20% RASM improvement versus the second quarter of 2019.

Headwinds

  • Fuel costs are anticipated to be between $3.85 to $3.90 per gallon in Q2.
  • Adjusted total operating expenses (excluding fuel) are expected to be between $545 and $555 million in the second quarter.
  • The guidance is subject to 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.
  • Capacity adjustments made by the Company may be different than what is currently expected, and those differences may be material.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+2.4%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+0.4%

Avg return

30 days after

56%

14 / 25 earnings

Positive

+33.8%

Q4 2023

Best reaction

-18.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.5%+15.1%+35.7%
Q4 2025-7.9%-10.2%-43.5%
Q3 2025+0.3%-1.6%+34.3%
Q1 2025+7.6%+12.2%+29.3%
Q4 2024+15.5%+14.3%-17.9%
Q3 2024-14.0%-17.9%-21.7%
Q2 2024+0.6%-1.0%+21.0%
Q1 2024-1.4%+2.7%-6.3%
Q4 2023+33.8%+47.0%+45.8%
Q3 2023-1.0%-11.7%+5.2%
Q2 2023-9.7%-13.0%-32.5%
Q1 2023-18.4%-13.6%-2.5%
Q4 2022-15.0%-16.5%-21.8%
Q3 2022+19.7%+32.2%+35.7%
Q2 2022+28.2%+32.1%+21.8%
Q1 2022+1.5%+0.8%+0.0%
Q4 2019+3.3%+2.1%-10.3%
Q4 2021+7.3%+10.2%-12.8%
Q3 2021-3.5%-2.9%-18.2%
Q3 2020-3.5%-2.9%-18.2%
Q2 2021+0.0%-2.6%+3.4%
Q2 2020+0.0%-2.6%+3.4%
Q1 2021+1.9%-0.6%-6.7%
Q4 2020+1.9%-0.6%-6.7%
Q1 2020+1.9%-0.6%-6.7%
Q1 2017
Q1 2016

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