NASDAQ$ULCC
Frontier Group Holdings Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Frontier's financial performance was impacted by elevated fuel prices, uneven demand recovery, and operational disruptions.
Frontier Group Holdings reported a total operating revenue of $883 million, a 3% decrease compared to the same quarter in 2022. The company faced challenges including elevated fuel prices, uneven demand recovery, and operational disruptions, resulting in a pre-tax loss of $(45) million and a net loss of $(32) million.
- Total operating revenues were $883 million, 3 percent lower than the 2022 quarter, on capacity growth of 21 percent.
- Cost per available seat mile (CASM) was 9.66 cents, a decline of 9 percent over the 2022 quarter.
- Pre-tax margin was (5.1) percent.
- The company took delivery of eight A321neo aircraft during the third quarter, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 77 percent as of September 30, 2023.
Headline financials
Revenue & EPS history
Frontier · Revenue · Quarterly
$883M
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
Looking to the fourth quarter, stage-adjusted, non-fuel unit costs are expected to sequentially improve and booking volume has stabilized, driven by low fare stimulation albeit at higher fuel prices.
Tailwinds
- Stage-adjusted, non-fuel unit costs are expected to sequentially improve.
- Booking volume has stabilized.
- Low fare stimulation is driving booking volume.
- Capacity is expected to grow by 12% to 14% over the comparable 2022 quarter.
- Effective tax rate of 20%.
Headwinds
- Higher fuel prices.
- Adjusted (non-GAAP) pre-tax margin (excluding special items) is expected to be (6) percent to (9) percent, including the impact of the higher fuel cost environment.
- Average fuel cost per gallon is expected to be $3.20 to $3.30.
- Adjusted (non-GAAP) total operating expenses (excluding fuel) are expected to be $655 to $665 million.
- Given the dynamic nature of the current demand environment, actual capacity adjustments made by the Company may be materially different than what is currently expected.
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 Q3 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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