NASDAQ$ULCC

Frontier Group Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Frontier Airlines reported record first quarter revenue driven by strong RASM growth and ancillary revenue.

Frontier Airlines reported a record first quarter total operating revenue of $848 million, a 40% increase compared to Q1 2022. The company's RASM increased by 19% and ancillary revenue per passenger reached $80. Despite the revenue growth, Frontier experienced a net loss of $13 million and a pre-tax loss of $17 million.

  • Total operating revenues reached $848 million, a record for any first quarter in company history.
  • Ancillary revenue was $80 per passenger, $11 higher than the 2022 quarter.
  • Pre-tax margin was (2.0) percent and adjusted pre-tax margin was (1.9) percent.
  • Ended the quarter with $790 million of unrestricted cash and cash equivalents.

Headline financials

Total Revenue

$848M

Previous: $605M+40.2%
EPS (adj)

-$0.05

Previous: -$0.50+90.0%
Fuel Cost per Gallon

$3.45

No prior period
Load Factor

82.8%

Previous: 74.2%+11.6%
Average Seats per Departure

195

No prior period
Free Cash Flow

-$13M

Previous: -$121M+89.3%
Net Income

-$13M

Previous: -$121M+89.3%
Operating Income

-$25M

Previous: -$153M+83.7%
Gross Profit

-$547M

Previous: -$448M-22.1%
Cash & Equivalents

$790M

Previous: $727M+8.7%
Total Assets

$4.67B

Previous: $4.14B+12.9%
Stock-Based Comp

$4M

Previous: $3M+33.3%

Revenue & EPS history

Frontier · Revenue · Quarterly

$848M

Q1 2023+40.2%vs Q1 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Frontier · $848M total across 2 segments · Q1 2023

  • Passenger
    $830M+41.2%
  • Other
    $18M+5.9%

Forward guidance

Frontier anticipates capacity growth of 22% to 24% in the second quarter of 2023 compared to Q2 2022. The adjusted pre-tax margin is expected to be in the range of 7% to 10% for the second quarter and 7% to 9% for the full year 2023.

Tailwinds

  • Capacity growth is expected to be 22% to 24% in Q2 2023 compared to Q2 2022.
  • Adjusted total operating expenses (excluding fuel) are anticipated to be $645 to $665 million for Q2 2023.
  • The effective tax rate for Q2 2023 is estimated to be approximately 24%.
  • Adjusted pre-tax margin is expected to be in the range of 7% to 10% for Q2 2023.
  • Full-year capacity is anticipated to grow 19% to 22% over 2022.

Headwinds

  • Fuel costs in the second quarter are expected to be $2.65 to $2.75 per gallon.
  • Full-year fuel costs are expected to be $2.80 to $2.90 per gallon.
  • Adjusted total operating expenses (excluding fuel) for the full year are anticipated to be $2,500 to $2,550 million.
  • The effective tax rate for the full year 2023 is estimated to be approximately 24%.
  • Adjusted pre-tax margin for the full year 2023 is expected to be 7% to 9%.

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 2023

Historical avgQ1 2023

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro