NASDAQ$ULCC

Frontier Group Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported financial results with revenue increase but adjusted pre-tax loss, while also issuing forward guidance.

Frontier Group Holdings reported a 6% increase in total operating revenues to $935 million for Q3 2024 compared to Q3 2023. Despite the revenue growth, the company experienced a pre-tax income of $27 million, with an adjusted pre-tax loss of $10 million. The company enhanced liquidity by $205 million through a new revolving credit facility and expanded PDP financing capacity by $113 million.

  • Total operating revenues increased by 6% to $935 million.
  • RASM was 9.28 cents, a 2% increase year-over-year.
  • The company closed a new revolving credit facility, enhancing liquidity by $205 million.
  • Took delivery of five A321neo aircraft during the quarter.

Headline financials

Total Revenue

$935M

Previous: $883M+5.9%
EPS

$0.11

Previous: -$0.14+178.6%
RASM (cents)

$9.28

No prior period
CASM (cents)

$9.10

Previous: $9.66-5.8%
CASM ex-fuel (cents)

$6.51

No prior period
Fuel Cost per Gallon

$2.67

No prior period
Load Factor

78.0%

No prior period
Average Seats per Departure

206

No prior period
Total Revenue per Passenger

$105.83

No prior period
Avg Daily Aircraft Utilization

10.2

No prior period
Passengers

8.8M

No prior period
Full-time Equivalent Employees

8.0K

No prior period
Capital Expenditures

-$14M

Previous: -$57M+75.4%
Free Cash Flow

$26M

Previous: -$32M+181.3%
Net Income

$26M

Previous: -$32M+181.3%
Operating Income

$19M

Previous: -$54M+135.2%
Gross Profit

-$602M

Previous: -$574M-4.9%
Cash & Equivalents

$576M

Previous: $640M-10.0%
Total Assets

$5.83B

Previous: $4.94B+18.1%
Stock-Based Comp

$3M

Previous: $3M+0.0%

Revenue & EPS history

Frontier · Revenue · Quarterly

$935M

Q3 2024+5.9%vs Q3 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Frontier · $883M total across 2 segments · Q3 2023

  • Passenger
    $862M-2.4%
  • Other
    $21M-8.7%

Forward guidance

The Company expects positive stage-adjusted year-over-year RASM in the fourth quarter, notwithstanding hurricane-related impacts - supported by continued moderation in capacity growth and further progress on recently deployed network and revenue initiatives.

Tailwinds

  • Positive stage-adjusted year-over-year RASM expected in Q4.
  • Continued moderation in capacity growth.
  • Further progress on recently deployed network and revenue initiatives.
  • Average fuel price per gallon is expected to be in the range of $2.40 to $2.50
  • Effective tax rate is expected to be 10 percent

Headwinds

  • Hurricane Milton flight cancellations and demand softness are expected to negatively impact Q4 adjusted pre-tax margin by approximately 2%.
  • Adjusted total operating expenses (excluding fuel) are expected to include approximately $10 million of cost inefficiencies from hurricane-related impacts and temporary excess crew-related costs due to capacity reductions.
  • Capacity is expected to decline by (2) to (3) percent over the comparable 2023 quarter.
  • Adjusted (non-GAAP) pre-tax margin (excluding special items) is expected to be 0 to 2 percent, including storm-related impacts.
  • Lower off-peak day-of-week capacity in the fourth quarter, which more closely aligns with demand trends.

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 2024

Historical avgQ3 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

Earnings price reactions
QuarterReport dateReaction (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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