Frontier Airlines Reports Wider-Than-Expected Loss in Third Quarter, Revenues Fall Short of Forecasts

DENVER - Frontier Airlines' parent company, Frontier Group Holdings, Inc. (NASDAQ:ULCC), reported a wider loss than expected for the third quarter of 2024, while revenue fell short of analyst estimates. The ultra-low-cost airline posted an adjusted loss of $0.05 per share, which is $0.02 worse than analysts' expectations of a $0.03 loss per share. Revenue for the quarter came in at $935 million, below the consensus estimate of $943.3 million.

Total operating revenue increased by 6% year-over-year to $935 million, driven by a 4% increase in capacity. Revenue per available seat mile (RASM) rose 2% compared to the same quarter last year, reaching 9.28 cents. CEO Barry Biffle stated, "Our revenue and network initiatives have started to overcome the excessive capacity supply in the industry, as evidenced by RASM turning positive in mid-August."

Frontier's adjusted pre-tax loss margin for the quarter was 1.1%. The company noted that the impacts of Hurricane Helene affected results, reducing revenue by about $5 million. Looking ahead, Frontier expects fourth-quarter capacity to decline by 2-3% year-over-year, including an estimated 2% impact from Hurricane Milton, and projects a pre-tax margin of -0% to 2% for the fourth quarter.

For the full year of 2024, Frontier anticipates an approximate 1% decrease in adjusted CASM (cost per available seat mile), excluding fuel, on a flight-length adjusted basis compared to 2023. As of September 30, Frontier's total liquidity position stood at $781 million, of which $576 million consists of unrestricted cash and cash equivalents.