DENVER, Feb. 7, 2025 /PRNewswire/ — Frontier Group Holdings, Inc. (Nasdaq: ULCC), parent company of Frontier Airlines, Inc., today reported financial results for the fourth quarter and full year 2024, including record revenue, and issued guidance for the first quarter and full year 2025.

Highlights:

• Pre-tax margin and adjusted (non-GAAP) pre-tax margin were both 5.1 percent for the fourth quarter
• Ended the year with $935 million of total liquidity, bolstered by the Company’s undrawn revolving line of credit, representing approximately 25 percent of trailing twelve month revenue compared to 17 percent at the end of 2023
• RASM was 10.23 cents, 15 percent higher than the comparable 2023 quarter
• Total operating revenues were $1.0 billion, a record for any quarter in Frontier’s history and 12 percent higher than the comparable 2023 quarter, on 2 percent lower capacity; full-year 2024 revenue was a record $3.8 billion, 5 percent higher than 2023
• CASM in the fourth quarter was 9.78 cents, including fuel expense at an average cost of $2.48 per gallon and total operating expenses (excluding fuel) of $728 million, of which the latter two were within the previously issued guidance range
• Full-year 2024 adjusted CASM (excluding fuel), stage length adjusted to 1,000 miles, a non-GAAP measure, was down 1.2 percent compared to the prior year, consistent with guidance
• Achieved a 99.4 percent completion factor in December 2024, second among all major domestic carriers, supported by the Company’s shift to network simplification
• Took delivery of six A321neo aircraft during the fourth quarter, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 82 percent as of December 31, 2024, the highest of all major U.S. carriers
• Generated 106 available seat miles (“ASM”) per gallon, a Company record, approximately 1 percent higher than the comparable 2023 quarter, reaffirming Frontier’s position as the most fuel-efficient of all major U.S. carriers and its ongoing commitment to being “America’s Greenest Airline” (as measured by ASMs per fuel gallon consumed during the fourth quarter compared to all other major U.S. carriers)
• Unveiled the next phase of ‘The New Frontier’ by offering an array of new products, including, among other benefits, First Class seating, companion passes and free premium seating upgrades for Elite members
• Recognized by the Centre for Aviation (CAPA) as a winner of the prestigious 2024 North American Environmental Sustainability Airline Award, which cited Frontier’s industry leading emissions reductions and efficiency
• Launched 22 routes in December 2024, two-thirds of which are touching a crew base to build scale and reliability to the network, and announced 16 routes launching in February and March 2025, expanding service across the United States and the Caribbean, including Frontier’s return to Tucson, Reno and Antigua and Barbuda

“Our revenue and network initiatives contributed to record fourth quarter revenue, setting us on a trajectory for significant year-over-year RASM growth in 2025 which underpins our target of achieving double-digit adjusted pre-tax margins in the summer of 2025,” commented Barry Biffle, Chief Executive Officer. “I’m proud of Team Frontier for their contributions to these results and commitment to supporting an exceptional customer experience and the best overall value in air travel.”

Fourth Quarter and Full Year 2024 Select Financial Highlights

The following is a summary of fourth quarter and full-year 2024 select financial results, including both GAAP and adjusted (non-GAAP) metrics. Refer to “Reconciliations of Non-GAAP Financial Information” in the appendix of this release.

Revenue Performance

Total operating revenue for the fourth quarter of 2024 was a record $1 billion on 2 percent lower capacity.

RASM was 10.23 cents, 15 percent higher than the comparable 2023 quarter, largely driven by the Company’s disciplined capacity deployment focused on peak days of the week, continued progress on the Company’s revenue and network initiatives, combined with the overall moderation in industry capacity growth. RASM on a stage adjusted basis to 1,000 miles, a non-GAAP measure, was 9.56 cents, 10 percent higher than the comparable 2023 quarter.

Departures increased 3 percent on an average stage length of 874 miles, an 8 percent decrease compared to the corresponding 2023 quarter. Total revenue per passenger was $117, 6 percent higher than the corresponding 2023 quarter, and flown load factor was 78 percent.

Cost Performance

Total operating expenses for the fourth quarter of 2024 totaled $957 million, including $229 million of fuel expenses at an average cost of $2.48 per gallon. Total adjusted operating expenses (excluding fuel), a non-GAAP measure, were $728 million, within the previously issued guidance range.

CASM was 9.78 cents in the fourth quarter compared to 8.93 cents in the corresponding 2023 quarter. Adjusted CASM (excluding fuel), stage adjusted to 1,000 miles, a non-GAAP measure, was 6.95 cents compared to 5.76 cents in the corresponding 2023 quarter. The increase was largely due to a 15 percent reduction in average daily aircraft utilization resulting from the Company’s disciplined capacity deployment, and an increase in airport costs, partly offset by the Company’s cost savings program launched in the third quarter of 2023. The prior period also included a $36 million reduction in fleet-related costs driven by the extension of four aircraft leases.

Full-year 2024 CASM was 9.32 cents and adjusted CASM (excluding fuel), stage length adjusted to 1,000 miles, a non-GAAP measure, was 6.44 cents compared to 6.52 cents in the prior year, down 1.2 percent, consistent with guidance.

Frontier’s full-year 2024 adjusted CASM + net interest, a non-GAAP measure, was 9.35 cents. Stage adjusted to 1,000 miles, the full-year 2024 adjusted CASM + net interest was 8.84 cents, approximately 48 percent lower versus the industry average¹, compared to 41 percent in full-year 2023 and 39 percent in full-year 2019.

Earnings

Pre-tax income and adjusted (non-GAAP) pre-tax income for the fourth quarter of 2024 were both $51 million, reflecting a pre-tax margin of 5.1 percent.

Net income for the fourth quarter of 2024 was $54 million, including an income tax benefit of $3 million resulting from the release of a portion of the valuation allowance associated with the Company’s net operating loss deferred tax asset related to the pre-tax earnings generated during the quarter. Additionally, the tax rate was favorably impacted by share-based compensation activity.

Liquidity

Total liquidity as of December 31, 2024 was $935 million, consisting of unrestricted cash and cash equivalents of $730 million and $205 million of availability from the Company’s revolving credit facility, representing approximately 25 percent of trailing twelve month total revenue compared to 21 percent at the end of September and 17 percent at year-end 2023.

Fleet

As of December 31, 2024, Frontier had a fleet of 159 Airbus single-aisle aircraft, as scheduled below, all financed through operating leases that expire between 2025 and 2036.

Frontier is “America’s Greenest Airline” as measured by fuel efficiency (ASMs per fuel gallon consumed during the fourth quarter compared to all other major U.S. carriers). During the fourth quarter of 2024, Frontier generated a record 106 ASMs per gallon, a 1 percent improvement compared to the 2023 quarter.

Frontier took delivery of two spare aircraft engines and six A321neo aircraft during the fourth quarter of 2024, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 82 percent as of December 31, 2024, the highest of all major U.S. carriers. The A321neo is expected to continue to unlock meaningful scale efficiencies by way of fuel savings and higher average seats per departure. As of December 31, 2024, the Company had commitments for an additional 187 aircraft to be delivered through 2031, including purchase commitments for 27 A320neo aircraft and 160 A321neo aircraft, representing 86 percent of future committed deliveries.

Forward Guidance

The guidance provided below is based on the Company’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in the Company’s reports on file with the Securities and Exchange Commission (the “SEC”). Frontier undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law. Further, this 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.

Frontier’s revenue and network initiatives are continuing to gain momentum, which, along with the Company’s significant cost advantage, are expected to be the foundation for margin expansion in full-year 2025 compared to full-year 2024. The Company expects continued disciplined capacity allocation between peak and off-peak days to align with travel demand patterns and contribute to revenue and RASM growth in 2025.

The current forward guidance estimates are presented in the following table:

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Conference Call

The Company will host a conference call to discuss fourth quarter 2024 results today at 11:00 a.m. Eastern Time (USA). Investors may listen to a live, listen-only webcast available on the investor relations section of the Company’s website at https://ir.flyfrontier.com/news-and-events/events.

The call will be archived and available for 90 days on the investor relations section of the Company’s website.

About Frontier Airlines

Frontier Airlines, Inc., a subsidiary of Frontier Group Holdings, Inc. (Nasdaq: ULCC), is committed to “Low Fares Done Right.” Headquartered in Denver, Colorado, the Company operates 159 A320 family aircraft and has the largest A320neo family fleet in the U.S. The use of these aircraft, along with Frontier’s high-density seating configuration and weight-saving initiatives, have contributed to Frontier’s continued ability to be the most fuel-efficient of all major U.S. carriers when measured by ASMs per fuel gallons consumed. With 187 new Airbus planes on order, Frontier will continue to grow to deliver on the mission of providing affordable travel across America.

End Notes

¹ Industry average weighted by ASMs in each respective period and includes the following carriers: DAL, UAL, AAL, LUV, JBLU, ALK, SAVE and ALGT; adjusted CASM + net interest is stage adjusted to 1,000 miles for consistency across all carriers, calculated as adjusted CASM + net interest * square root (stage length/1,000); excludes JBLU and ALGT non-airline costs and DAL third-party refinery costs; includes LUV, UAL and DAL profit sharing; includes UAL third-party business expenses; includes ALGT employee recognition bonus; includes other non-operating costs for the industry; SAVE projected fiscal year 2024 results obtained from Cleansing Materials attached as Exhibit 99.2 to SAVE’s Current Report on Form 8-K, filed with the SEC on November 18, 2024.

Cautionary Statement Regarding Forward-Looking Statements and Information

Certain statements in this release should be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company’s current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Words such as “expects,” “will,” “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “goals,” “targets” and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law.

Actual results could differ materially from these forward-looking statements due to numerous risks and uncertainties relating to the Company’s operations and business environment including, without limitation, the following: unfavorable economic and political conditions in the states where the Company operates and globally, including an inflationary environment, and the resulting impact on cost inputs and/or consumer demand for air travel; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity; disruptions to the Company’s flight operations, including due to factors beyond the Company’s control, such as adverse weather events or air traffic controller staffing shortages; the Company’s ability to attract and retain qualified personnel at reasonable costs; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel, including as a result of the war between Russia and Ukraine or the conflict in the Middle East; the Company’s reliance on technology and automated systems to operate its business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; the Company’s reliance on third-party service providers and the impact of any failure of these parties to perform as expected, or interruptions in the Company’s relationships with these providers or their provision of services; adverse publicity and/or harm to the Company’s brand or reputation; reduced travel demand and potential tort liability as a result of an accident, catastrophe or incident involving the Company, its codeshare partners or another airline; terrorist attacks, international hostilities or other security events, or the fear of terrorist attacks or hostilities, even if not made directly on the airline industry; increasing privacy and data security obligations or a significant data breach; further changes to the airline industry with respect to alliances and joint business arrangements or due to consolidations; changes in the Company’s network strategy or other factors outside its control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into less favorable aircraft orders; the Company’s reliance on a single supplier for its aircraft and two suppliers for its engines, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; expanded inspection programs and/or heightened maintenance requirements imposed on the Company’s aircraft or engines; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions on the Company’s operations; extended interruptions or disruptions in service at major airports where the Company operates; the impacts of seasonality and other factors associated with the airline industry; the Company’s failure to realize the full value of its intangible assets or its long-lived assets, causing the Company to record impairments; the costs of compliance with extensive government regulation of the airline industry; costs, liabilities and risks associated with environmental regulation and climate change; the Company’s inability to accept or integrate new aircraft into the Company’s fleet as planned; the impacts of the Company’s significant amount of financial leverage from fixed obligations, the possibility the Company may seek material amounts of additional financial liquidity in the short-term and the impacts of insufficient liquidity on the Company’s financial condition and business; failure to comply with the covenants in the Company’s financing agreements or failure to comply with financial and other covenants governing the Company’s other debt; changes in, or failure to retain, the Company’s senior management team or other key employees; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; and other risks and uncertainties set forth from time to time under sections captioned “Risk Factors” in the Company’s reports and other documents filed with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 20, 2024, and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which was filed with the SEC on May 2, 2024.