NASDAQ$ULCC
Frontier Group Holdings Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Achieved record post-pandemic pre-tax margin and improved cost efficiency.
Frontier Airlines reported a strong second quarter in 2023, achieving a record post-pandemic pre-tax margin of 9.1% and demonstrating improved cost efficiency. The company's total operating revenues reached $967 million, a 6% increase compared to the same quarter in 2022. Frontier also took delivery of three A321neo aircraft, increasing the proportion of its fleet comprised of fuel-efficient A320neo family aircraft to 75%.
- Total operating revenues reached $967 million, a 6% increase year-over-year.
- Pre-tax margin reached 9.1%, the highest post-pandemic margin.
- Adjusted CASM (excluding fuel) improved by 5% compared to the 2022 quarter.
- Ancillary revenue per passenger was $80, a $5 increase year-over-year.
Headline financials
Revenue & EPS history
Frontier · Revenue · Quarterly
$967M
Revenue by segment
Frontier · $883M total across 2 segments · Q3 2023
- Passenger$862M-2.4%97.6%
- Other$21M-8.7%2.4%
Forward guidance
The Company expects third-quarter capacity to grow by 21 to 23 percent over the comparable 2022 quarter and full-year capacity to grow 19 to 21 percent over the prior year. Third quarter adjusted (non-GAAP) pre-tax margin (excluding special items) is expected to be 4 to 7 percent, and the full year 2023 adjusted (non-GAAP) pre-tax margin (excluding special items) is expected to be 4 to 6 percent.
Tailwinds
- Third-quarter capacity is expected to grow by 21% to 23% compared to 2022.
- Full-year capacity is projected to increase by 19% to 21% over the prior year.
- Third quarter adjusted pre-tax margin is expected to be between 4% and 7%.
- Full year 2023 adjusted pre-tax margin is expected to be between 4% and 6%.
Headwinds
- Weather-related cancellations in the third quarter are expected to have an impact.
- Slightly higher fuel cost per gallon than previous guidance is anticipated.
- A moderation in average fares is expected due to a shift in demand to competing long-haul international destinations.
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 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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