In This Article:
-
Total Operating Revenue: $1 billion, a 12% increase from the prior year quarter.
-
Adjusted Pre-Tax Margin: 5.1% for the fourth quarter.
-
RASM (Revenue per Available Seat Mile): $0.1023, a 15% increase.
-
Total Revenue per Passenger: $117, up 6% from the prior year quarter.
-
Fuel Expense: $229 million, 24% lower than the previous year quarter.
-
Average Fuel Cost: $2.48 per gallon.
-
Adjusted Non-Fuel Operating Expenses: $728 million.
-
Net Income: $54 million or $0.23 per diluted share.
-
Total Liquidity: $935 million, including $730 million in unrestricted cash and cash equivalents.
-
Fleet Size: 159 aircraft at quarter end.
-
Passengers: 33 million in 2024, a 10% increase from 2023.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Frontier Group Holdings Inc (NASDAQ:ULCC) reported a 12% increase in total operating revenue for the fourth quarter, reaching a record $1 billion.
-
The company achieved a 5.1% adjusted pre-tax margin in the fourth quarter, significantly higher than the original guidance.
-
Frontier Group Holdings Inc (NASDAQ:ULCC) launched 22 new routes in December, expanding its network and leveraging its 13 crew bases.
-
The company reported a 10% increase in passengers for 2024, totaling a record 33 million travelers.
-
Frontier Group Holdings Inc (NASDAQ:ULCC) is making significant investments in customer experience enhancements, including premium seating and digital upgrades, to drive demand and revenue growth.
Negative Points
-
The company experienced a 15% reduction in average daily aircraft utilization, impacting operating expenses.
-
Ancillary revenue per passenger slightly decreased, offsetting some of the gains from increased fare revenue.
-
Frontier Group Holdings Inc (NASDAQ:ULCC) faces challenges with overcapacity in certain markets, requiring adjustments to its network.
-
The company anticipates a drag on first-quarter performance due to the timing of Easter, which could impact revenue.
-
There are potential cost pressures from sale leaseback transactions and other operational expenses that could affect margins.
Q & A Highlights
Q: Barry, your guidance didn't provide a lot of details on the metrics. Can you give us a sense of where you're seeing some of your unit trends on revenue and cost and how you think that's going to play out in 2025? A: Barry Biffle, CEO: Our revenue trends are performing well due to network changes initiated last year. We're seeing tailwinds from network initiatives and premium focus, with a cost advantage expected to remain over 40% this year.