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
Revenue & EPS history
Frontier · Revenue · Quarterly
$848M
Revenue by segment
Frontier · $848M total across 2 segments · Q1 2023
- Passenger$830M+41.2%97.9%
- Other$18M+5.9%2.1%
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
+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
| Quarter | Report date | Reaction (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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