NASDAQ$ULCC
Frontier Group Holdings Inc · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Frontier reported a slight increase in total operating revenues and achieved significant cost savings.
Frontier Airlines reported a 1% increase in total operating revenues to $973 million for Q2 2024. The company achieved over $100 million in annual run rate cost savings and saw a reduction in CASM. Pre-tax income and net income were $32 million and $31 million, respectively.
- Total operating revenues increased by 1% compared to Q2 2023, reaching $973 million.
- Achieved annual run rate cost savings of more than $100 million from the cost savings program launched in Q3 2023.
- CASM decreased by 6% compared to Q2 2023, while adjusted CASM (excluding fuel) decreased by 10%.
- Pre-tax income and adjusted pre-tax income were both $32 million, with a pre-tax margin of 3.3%.
Headline financials
Revenue & EPS history
Frontier · Revenue · Quarterly
$973M
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
Frontier anticipates capacity growth of 4-6% for Q3 2024 and expects adjusted pre-tax margin to be between (3) to (6) percent. Full year capacity growth is projected at 5-7% with adjusted pre-tax margin between (1.5) to 1.5 percent.
Tailwinds
- Significant portion of scheduled capacity in the third quarter of 2024 is allocated to new markets.
- New markets expected to drive higher RASM as they mature.
- Industry capacity is expected to better align with demand.
- Average selling fares for September 2024 have inflected positively compared to the prior year.
- Company continues to make significant progress in allocating capacity growth to high-fare and underserved VFR markets.
Headwinds
- Fare pressure caused by excess domestic capacity growth.
- Weather, including Hurricane Debby, is expected to have an estimated 4 percentage point impact on adjusted pre-tax margin.
- July Microsoft/CrowdStrike outage is expected to have an estimated 4 percentage point impact on adjusted pre-tax margin.
- Off-peak demand was underperforming expectations, leading to an adjustment to scheduled capacity for late-August 2024 and beyond.
- Guidance excludes special items and the reconciliation of non-GAAP measures to the comparable GAAP measures because such amounts cannot be determined at this time.
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 2024
+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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