NASDAQ$ULCC
Frontier Group Holdings Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Reported profitable results driven by record revenue growth and ancillary revenue.
Frontier Airlines reported a profitable second quarter of 2022, achieving record revenue growth of 43% compared to pre-COVID levels in 2019. The company's strong revenue performance, driven by high demand and record ancillary revenue, offset the impact of high fuel prices and other cost inflation, resulting in a net income of $13 million and an adjusted net income of $20 million.
- Total operating revenues reached $909 million, a 43% increase compared to the second quarter of 2019.
- Ancillary revenue per passenger hit a record $75, up 33% from the second quarter of 2019.
- The company ended the quarter with $766 million in unrestricted cash and cash equivalents.
- Frontier operated the most fuel-efficient fleet among major U.S. carriers, generating 100 ASMs per gallon.
Headline financials
Revenue & EPS history
Frontier · Revenue · Quarterly
$909M
Revenue by segment
Frontier · $909M total across 2 segments · Q2 2022
- Passenger$890M—97.9%
- Other$19M—2.1%
Forward guidance
Frontier anticipates record revenue in Q3 2022, with RASM growth exceeding 20% compared to Q3 2019. Capacity is projected to increase by 8-10% compared to Q3 2019, with full-year capacity expected to grow by 12-15% versus 2019. Adjusted pre-tax margin is anticipated to be between 1% and 5%.
Tailwinds
- Record revenue expected in the third quarter of 2022.
- RASM growth of over 20% compared to the third quarter of 2019.
- Capacity growth of 8% to 10% in the third quarter compared to 2019.
- Pre-tax profitability expected for the third quarter, excluding special items.
- Expansion of adjusted pre-tax margins is expected in the fourth quarter and beyond.
Headwinds
- Fuel costs are anticipated to be between $3.75 to $3.80 per gallon.
- Adjusted total operating expenses (excluding fuel) are expected to be between $565 to $585 million in the third quarter.
- Guidance is subject to significant risks and uncertainties.
- The company's expectation that demand will continue to recover to more normalized levels as 2022 progresses.
- The actual 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 Q2 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
| 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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