DENVER, May 1, 2025 /PRNewswire/ — Frontier Group Holdings, Inc. (Nasdaq: ULCC), parent company of Frontier Airlines, Inc., today reported financial results for the first quarter of 2025.
Frontier Airlines (2nd) Airbus A321-271NX WL N631FR (msn 11694) (Pearl, the Spotted Eagle Ray) ONT (Michael B. Ing). Image: 964747.
Highlights:
Total operating revenues were $912 million, a record for any first quarter in Frontier’s history, 5 percent higher than the comparable 2024 quarter
Revenue per available seat mile (“RASM”) was 9.17 cents, roughly flat to the comparable 2024 quarter
Cost per available seat mile (“CASM”) was 9.63 cents, 1 percent above the comparable 2024 quarter, including fuel expense at an average cost of $2.55 per gallon and total operating expenses of $958 million, or $720 million excluding fuel (a non-GAAP measure)
Pre-tax loss was $40 million; net loss was $43 million, or $(0.19) per share
Ended the quarter with $889 million of total liquidity
Took delivery of four A321neo aircraft and two spare aircraft engines during the first quarter
82 percent of Frontier’s fleet was comprised of the highly fuel-efficient A320neo family aircraft at quarter end, the highest percentage of all major U.S. carriers
Generated a record 107 available seat miles (“ASMs”) per gallon, reaffirming Frontier’s position as “America’s Greenest Airline” as measured by fuel efficiency (ASMs per fuel gallon consumed during the first quarter, compared to all other major U.S. carriers)
Received the Diamond Award of Excellence for 2024, the Federal Aviation Administration’s most distinguished honor in recognition of Aircraft Maintenance Technicians and employers for their commitment to maintenance training and safety
Launched 17 new routes which expanded service across the United States and the Caribbean, including Frontier’s return to Tucson, Reno, and Antigua and Barbuda, and non-stop service from New York’s JFK to Miami
Announced 22 new routes launching in the spring, including first-ever service at Seattle’s Paine Field International Airport and Gregorio Luperón International Airport in Puerto Plata, Dominican Republic, the latter of which continues Frontier’s rapid growth across the Caribbean
“First quarter results reflect softer travel demand primarily during March, with current booking trends suggesting demand for May and early summer travel has now stabilized,” commented Barry Biffle, Chief Executive Officer. “The significant investments we’ve made in our revenue and network initiatives over the past year, combined with our industry leading cost advantage, position us to offer more low fares to more people in more places. One key example is our Economy bundle which we believe provides more relative value than other competing low fares.”
Mr. Biffle continued, “We are targeting a return to profitability in the second half of the year supported by moderating industry capacity, the leverage from our commercial investments and continued close management of the elements of the business we can control, including capacity optimization and aggressive cost and capital expenditure management. I’m extremely proud of Team Frontier for their contributions throughout the quarter and I’m confident we have the best talent in the industry to work through this environment.”
First Quarter 2025 Select Financial Highlights
The following is a summary of first quarter 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.
(unaudited, in millions, except for percentages and per share data)Three Months Ended March 31,20252024As Reported
(GAAP)Adjusted(Non-GAAP)As Reported
(GAAP)Adjusted(Non-GAAP)Total operating revenues$ 912$ 912$ 865$ 865Total operating expenses$ 958$ 958$ 896$ 896Pre-tax income (loss)$ (40)$ (40)$ (24)$ (24)Pre-tax income (loss) margin(4.4) %(4.4) %(2.8) %(2.8) %Net income (loss)$ (43)$ (43)$ (26)$ (21)Earnings per share, diluted$ (0.19)$ (0.19)$ (0.12)$ (0.09)
Revenue Performance
Total operating revenue for the first quarter of 2025 was $912 million, a record for any first quarter in Frontier’s history, 5 percent higher on capacity growth of 5 percent, both compared to the corresponding 2024 quarter. Revenue growth was lower than expected due largely to softer demand in March, resulting in fare discounting and promotions across the industry.
RASM was 9.17 cents, roughly flat to the corresponding 2024 quarter, supported by recent investments in broad revenue and network initiatives notwithstanding constrained domestic consumer travel demand during the quarter due largely to macroeconomic uncertainty.
Enplanements and departures increased 12 percent and 6 percent, respectively, on an average stage length of 925 miles, a 3 percent decrease compared to the corresponding 2024 quarter. Total revenue per passenger was $116, 6 percent lower than the corresponding 2024 quarter, and flown load factor was approximately 2 percentage points higher at 74.9 percent.
Cost Performance
Total operating expenses were $958 million in the first quarter of 2025, comprised of $238 million of fuel expenses at an average cost of $2.55 per gallon, and $720 million of operating expenses (excluding fuel), a non-GAAP measure.
CASM was 9.63 cents in the first quarter of 2025, 1 percent higher than the comparable 2024 quarter. CASM (excluding fuel), a non-GAAP measure, was 7.24 cents, 8 percent higher than the 2024 quarter. The increase was due primarily to an 8 percent reduction in average daily aircraft utilization resulting from the Company’s disciplined capacity deployment, a 3 percent decrease in the average stage length, higher station costs, fleet growth and lower sale-leaseback gains primarily resulting from the timing of aircraft deliveries. These items were partially offset by a reduction in fleet-related costs tied to the extension of certain aircraft leases.
Earnings
Pre-tax loss was $40 million for the first quarter of 2025, reflecting a pre-tax loss margin of 4.4 percent.
Net loss was $43 million for the first quarter of 2025, inclusive of $3 million in income tax expense primarily relating to a non-cash valuation allowance against deferred tax assets. The net operating losses subject to a valuation allowance generally do not expire and may be used to offset future taxable income, at which time any related valuation allowance would be released.
Loss per share for the first quarter of 2025 was $0.19 based on approximately 227 million weighted-average shares outstanding in the quarter.
Liquidity
Total liquidity as of March 31, 2025 was $889 million, consisting of unrestricted cash and cash equivalents of $684 million and $205 million of availability from the Company’s undrawn revolving credit facility.
Fleet
As of March 31, 2025, Frontier had a fleet of 163 Airbus single-aisle aircraft, as scheduled below, all financed through operating leases that expire between 2025 and 2037.
EquipmentQuantitySeatsA320neo82186A320ceo8180 – 186A321ceo21230A321neo52240Total fleet163
Frontier took delivery of four A321neo aircraft and two spare aircraft engines during the first quarter of 2025. As of March 31, 2025, the Company had commitments for an additional 183 aircraft to be delivered through 2031, including purchase commitments for 27 A320neo aircraft and 156 A321neo aircraft, representing approximately 85 percent of future committed deliveries. The Company has secured sale-leaseback financing commitments for expected deliveries through 2025 and approximately 40 percent of expected deliveries in 2026.
As of March 31, 2025, 82 percent of Company’s fleet was comprised of the highly fuel-efficient A320neo family aircraft, the highest percentage 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.
Frontier is “America’s Greenest Airline” as measured by fuel efficiency (ASMs per fuel gallon consumed during the first quarter compared to all other major U.S. carriers). During the first quarter of 2025, Frontier generated a record 107 ASMs per gallon, 1 percent higher than the comparable 2024 quarter.
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.
The Company’s second quarter adjusted (non-GAAP) loss per share guidance, as noted below, largely reflects softer travel demand in April and the normal lead time to align costs with capacity reductions. Current booking trends suggest demand for May and early summer travel has now stabilized, supported by Frontier’s investments in revenue and network enhancements alongside capacity reductions by the Company and other domestic carriers.
The Company continues to focus on controlling the elements of the business it can control, including, but not limited to, optimization of capacity and related costs, and capital spending. The Company has therefore reduced planned capacity for both the second quarter and the balance of 2025 to be down low single digits on a percentage basis compared to the corresponding prior-year period, with adjustments focused on off-peak days of the week. The Company will closely monitor the demand environment and make any further adjustments to capacity and related costs, as appropriate.
The Company will not provide full-year 2025 adjusted EPS guidance given the uncertainty in the demand outlook for the balance of the year.
Second Quarter2025Adjusted (non-GAAP) loss per share(a)(b)(c)$(0.23) to $(0.37)
(a)Includes guidance on certain non-GAAP measures which excludes, among other things, special items. The Company is unable to reconcile these forward-looking projections to GAAP as the nature or amount of such special items cannot be determined at this time.(b)Based on the blended jet fuel curve on April 29, 2025, resulting in an average fuel cost (including fuel taxes and into-plane costs) of $2.38 per gallon and approximately $2.30 per gallon for the second quarter and the remainder of 2025, respectively.(c)Based on estimated weighted average shares outstanding of 228 million shares in the second quarter 2025 and a projected tax expense provision in the range of $2 million to $5 million due to the expected recognition of a non-cash valuation allowance. The Company’s second quarter actual tax expense may be impacted by varying factors which may include, but are not limited to, the composition of items of income and expense recognized in the respective periods, including the amount of non-deductible or other similar items, the treatment of deferred tax assets and related valuation allowances.
Conference Call
The Company will host a conference call to discuss first quarter 2025 results today, May 1, 2025, at 4:30 p.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 also be archived and available for at least 90 days on the investor relations section of the Company’s website.
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