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Frontier Airlines reports wider-than-feared Q3 loss, revenue misses estimates

EditorRachael Rajan
Published 10/29/2024, 04:28 PM
© Reuters.
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DENVER - Frontier Group Holdings, Inc. (NASDAQ:ULCC), parent company of Frontier Airlines, reported a wider-than-expected loss for the third quarter of 2024, while revenue fell short of analyst estimates.

The ultra-low-cost carrier posted an adjusted loss of $0.05 per share, $0.02 worse than the analyst estimate of a $0.03 loss per share. Revenue for the quarter came in at $935 million, missing the consensus estimate of $943.3 million.

Total operating revenue increased 6% YoY to $935 million, driven by a 4% increase in capacity. Revenue per available seat mile (RASM) rose 2% to 9.28 cents compared to the same quarter last year.

"Our revenue and network initiatives began to overcome oversupplied industry capacity as evidenced by RASM which inflected positive by mid-August," said Barry Biffle, Chief Executive Officer.

Frontier's adjusted pre-tax loss margin was 1.1% for the quarter. The company noted that Hurricane Helene impacted results, reducing revenue by approximately $5 million.

Looking ahead, Frontier expects fourth quarter capacity to decline 2-3% YoY. The company forecasts an adjusted pre-tax margin of 0-2% for Q4, including an estimated 2% impact from Hurricane Milton.

For the full year 2024, Frontier anticipates adjusted CASM (excluding fuel) on a stage-length adjusted basis to be down approximately 1% compared to 2023.

As of September 30, Frontier had total liquidity of $781 million, including $576 million in unrestricted cash and cash equivalents.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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