DENVER, Oct. 29,
2024 /PRNewswire/ -- Frontier Group Holdings, Inc.
(Nasdaq: ULCC), parent company of Frontier Airlines, Inc., today
reported financial results for the third quarter of 2024 and issued
guidance for the fourth quarter and full year 2024.
Highlights:
- Total operating revenues were $935
million, 6 percent higher than the comparable 2023 quarter,
on a 4 percent increase in capacity
- Revenue per available seat mile ("RASM") was 9.28 cents, 2 percent higher than the comparable
2023 quarter
- RASM on a stage-length adjusted basis to 1,000 miles, a
non-GAAP measure1, was 8.59
cents, 5 percent lower than the comparable 2023 quarter,
while RASM on a stage-length adjusted basis to 1,000 miles
inflected positive in the second half of the quarter compared to
the corresponding 2023 period
- Cost per available seat mile ("CASM") was 9.10 cents, a reduction of 6 percent over the
comparable 2023 quarter
- Adjusted CASM (excluding fuel), a non-GAAP measure, was
6.89 cents, on a 14 percent shorter
average stage length; adjusted CASM (excluding fuel) on a
stage-length adjusted basis to 1,000 miles, a non-GAAP
measure2, was 4 percent lower than the comparable 2023
quarter
- Pre-tax income margin was 2.9 percent and adjusted (non-GAAP)
pre-tax loss margin was 1.1 percent, within guidance,
notwithstanding the impact of Hurricane Helene
- Closed a new revolving credit facility secured by the Company's
loyalty and brand-related assets which enhanced liquidity by
$205 million to a total of
$781 million as of September 30, 2024
- Expanded the Company's total PDP financing capacity by
$113 million to $478 million, in the aggregate, relating to
aircraft on order from Airbus that are currently scheduled for
delivery through 2027 and certain deliveries scheduled in 2028
- Took delivery of five A321neo aircraft during the third
quarter, increasing the proportion of the fleet comprised of the
more fuel-efficient A320neo family aircraft to 81 percent as of
September 30, 2024, the highest of
all major U.S. carriers
- Frontier's average fleet age was approximately 4.5 years as of
September 30, 2024, making it the
youngest among all U.S.-based carriers
- Generated 103 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 third quarter, compared to all other major U.S. carriers)
- Announced 33 new routes as part of the expanded winter
schedule, including the return of Washington Dulles, Palm Springs, CA and Burlington, VT, and the addition of a new
station in Vail/Eagle County, CO
"Our revenue and network initiatives began to overcome
oversupplied industry capacity as evidenced by RASM which inflected
positive by mid-August," commented Barry
Biffle, Chief Executive Officer. "We expect maturity of our
network and revenue initiatives and moderating industry capacity
growth to set the stage to continue to grow RASM and, along with
our industry leading cost performance, to drive a return to
double-digit adjusted pre-tax margins by summer 2025."
Third Quarter 2024 Select Financial
Highlights
The following is a summary of third 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
September 30,
|
|
2024
|
|
2023
|
|
As Reported
(GAAP)
|
|
Adjusted
(Non-GAAP)
|
|
As Reported
(GAAP)
|
|
Adjusted
(Non-GAAP)
|
|
Total operating
revenues
|
$
935
|
|
$
935
|
|
$
883
|
|
$
883
|
|
Total operating
expenses
|
$
916
|
|
$
954
|
|
$
937
|
|
$
937
|
|
Pre-tax
income
|
$
27
|
|
$
(10)
|
|
$
(45)
|
|
$
(45)
|
|
Pre-tax
margin
|
2.9 %
|
|
(1.1) %
|
|
(5.1) %
|
|
(5.1) %
|
|
Net income
|
$
26
|
|
$
(11)
|
|
$
(32)
|
|
$
(32)
|
|
Earnings per share,
diluted
|
$
0.11
|
|
$
(0.05)
|
|
$
(0.14)
|
|
$
(0.14)
|
Revenue Performance
Total operating revenue for the third quarter of 2024 increased
6 percent to $935 million, net of
approximately $5 million related to
Hurricane Helene, on capacity growth of 4 percent, both compared to
the corresponding 2023 quarter. Departures increased 17 percent
over the comparable 2023 quarter as average stage length decreased
14 percent to 856 miles. Total revenue per passenger was
$106 and flown load factor was 78.0 percent.
RASM was 9.28 cents, 2 percent
higher compared to the corresponding 2023 quarter. RASM on a
stage-length adjusted basis to 1,000 miles, a non-GAAP measure,
was 8.59 cents, 5 percent lower than the comparable 2023
quarter, largely driven by the impact of excess industry seat
capacity in domestic markets in the first half of the quarter.
As the quarter progressed, RASM on a stage-length adjusted
basis to 1,000 miles was higher in the second half of the quarter
compared to the corresponding 2023 period, driven by the Company's
capacity reductions which were focused on off-peak days, maturity
of new markets and the progress of the Company's revenue
initiatives, combined with overall moderation in industry capacity
growth.
Cost Performance
Total operating expenses were $916
million in the third quarter, comprised of $261 million of fuel expenses at an average cost
of $2.67 per gallon, and $655 million of operating expenses (excluding
fuel), which includes a $38
million non-recurring credit related to a legal settlement
executed during the quarter, net of accumulated legal fees.
Excluding the non-recurring item, adjusted total operating
expenses (excluding fuel), a non-GAAP measure, were $693 million, reflecting the Company's ongoing
aggressive cost management and the continuation of benefits from
the cost savings program which has generated annual run rate cost
savings of more than $100 million
since it was launched in the third quarter of 2023.
CASM was 9.10 cents in the third
quarter of 2024, 6 percent lower than the comparable 2023 quarter.
CASM (excluding fuel), a non-GAAP measure, was 6.51 cents, 2 percent lower than the 2023
quarter. Adjusted CASM (excluding fuel), a non-GAAP measure, on a
stage-length adjusted basis to 1,000 miles was 6.37 cents, 4 percent lower than the comparable
2023 quarter due to the benefits from the Company's cost savings
program and the cost benefit from two additional aircraft
sale-leaseback transactions in the quarter, net of higher costs
associated with an increase in departures driven by a lower average
stage length, and higher costs related to fleet growth and reduced
off-peak day-of-week capacity.
Earnings
Pre-tax income was $27 million for
the third quarter of 2024, reflecting a pre-tax margin of 2.9
percent, while adjusted (non-GAAP) pre-tax loss was $10 million, reflecting an adjusted pre-tax loss
margin of 1.1 percent.
Net income was $26 million for the
third quarter of 2024 while adjusted (non-GAAP) net loss was
$11 million.
New Credit Facilities
As previously announced, on September 26,
2024, the Company entered into a series of transactions
designed to enhance liquidity and expand capacity for financing
facilities intended to fund aircraft pre-delivery payments.
Specifically, the Company entered into a revolving credit
facility which provides $205 million
of commitments secured by the Company's loyalty program and
brand-related assets, and which, subject to certain terms,
conditions and additional lending commitments, may be increased to
$500 million. The facility also
permits the Company to enter into additional indebtedness secured
by the Company's loyalty program and brand-related assets, which
may provide for significant incremental liquidity, as desired, to
the extent such indebtedness is pari passu to that of the revolving
credit facility.
Additionally, the Company entered into new PDP financing
facilities and amended its existing PDP financing facility, which
increased the Company's total PDP financing capacity to
$478 million, in the aggregate,
relating to aircraft on order from Airbus that are currently
scheduled for delivery through 2027 and certain deliveries
scheduled in 2028. The Company's previous PDP financing facility
provided up to $365 million of PDP
financing for aircraft deliveries through 2026.
For additional details, refer to the Form 8-K filed on
September 30, 2024 and Form 10-Q
filed today, both with the Securities and Exchange Commission.
Liquidity
Total liquidity as of September 30, 2024 was
$781 million, consisting of unrestricted cash and cash
equivalents of $576 million and $205 million of
availability from the Company's revolving credit facility described
above. Unrestricted cash and cash equivalents was $107 million
net of debt.
In the third quarter, the Company was awarded damages related to
litigation brought against a former aircraft lessor for breach of
contract. A mutual settlement was executed shortly thereafter and
proceeds of $40 million were received in early October.
Fleet
As of September 30, 2024, Frontier had a fleet of
153 Airbus single-aisle aircraft, as scheduled below, all
financed through operating leases that expire between 2025 and
2036.
|
Equipment
|
Quantity
|
Seats
|
|
A320neo
|
82
|
186
|
|
A320ceo
|
8
|
180 - 186
|
|
A321ceo
|
21
|
230
|
|
A321neo
|
42
|
240
|
|
Total
fleet
|
153
|
|
Frontier took delivery of five A321neo aircraft during the third
quarter of 2024, all financed with sale-leaseback transactions. The
Company has secured sale-leaseback financing commitments for
expected deliveries through 2025 and approximately one-third of
2026 expected deliveries.
The proportion of Company's fleet comprised of the more
fuel-efficient A320neo family aircraft is approximately 81 percent
as of September 30, 2024, the highest of all major U.S.
carriers. The A321neo is expected to unlock meaningful scale
efficiencies by way of fuel savings and higher average seats per
departure. As of September 30, 2024, the Company had
commitments for an additional 193 aircraft to be delivered through
2031, including purchase commitments for 27 A320neo aircraft and
166 A321neo aircraft, the latter of which represents 86 percent of
future committed deliveries.
As previously disclosed, in September
2024, the Company executed an amendment with Airbus which
defers certain aircraft deliveries with original delivery dates in
2025 through 2028, out to 2029 through 2031, lowering fleet
inductions in each of the next four years, thereby reducing the
Company's financing needs and PDP commitments in the coming
years.
Frontier is "America's Greenest Airline" as measured by
fuel efficiency (ASMs per fuel gallon consumed during the third
quarter compared to all other major U.S. carriers). During the
third quarter of 2024, Frontier generated 103 ASMs per gallon,
similar to the comparable 2023 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.
Fourth Quarter 2024
The Company expects positive stage-adjusted year-over-year RASM
in the fourth quarter - notwithstanding hurricane-related impacts -
supported by continued moderation in capacity growth and further
progress on recently deployed network and revenue initiatives. The
Company estimates an impact to its projected fourth quarter
adjusted (non-GAAP) pre-tax margin of approximately 2 percent
(which is reflected in the guidance provided below) related to
Hurricane Milton flight cancellations and demand softness for
travel to hurricane-affected areas.
The current forward guidance estimates are presented in the
table below. To recap, capacity is expected to decline by (2) to
(3) percent over the comparable 2023 quarter. The average fuel
price per gallon is expected to be in the range of $2.40 to $2.50
based on the blended fuel curve on October
24, 2024. Adjusted (non-GAAP) total operating expenses
(excluding fuel) are expected to be $725 to $745
million, which includes an estimate of approximately
$10 million of cost inefficiencies
from hurricane-related impacts and temporary excess crew-related
costs due to capacity reductions. The comparable 2023 quarter was
favorably impacted by a $36 million
lease return cost benefit related to the extension of four A320ceo
aircraft leases.
Adjusted (non-GAAP) pre-tax margin (excluding special items) is
expected to be 0 to 2 percent, including storm-related impacts.
Full Year 2024
Full year 2024 adjusted (non-GAAP) CASM (excluding fuel) on a
stage-length adjusted basis to 1,000 miles, is expected to be down
approximately 1 percent compared to the prior year, at the low end
of prior guidance (down 1 to 2 percent), driven by lower off-peak
day-of-week capacity in the fourth quarter, which more closely
aligns with demand trends.
|
Fourth
Quarter
|
|
2024(a)
|
|
Capacity change (versus
4Q 2023)(b)
|
(2) to (3)
percent
|
|
Adjusted (non-GAAP)
total operating expenses (excluding fuel)c)
|
$725 to $745
million
|
|
Average fuel cost per
gallon(d)
|
$2.40 to
$2.50
|
|
Effective tax
rate(e)
|
10 percent
|
|
Adjusted (non-GAAP)
pre-tax margin
|
0 to 2
percent
|
|
Pre-delivery deposits,
net of refunds
|
$5 to $25
million
|
|
Other capital
expenditures(f)
|
$35 to $55
million
|
|
|
|
Full
Year
|
|
2024(a)
|
|
Adjusted (non-GAAP)
CASM (excluding fuel), stage-length adjusted to 1,000 miles (versus
2023)(c)
|
~(1) percent
|
|
|
(a)
|
Includes guidance on
certain non-GAAP measures, including adjusted total operating
expenses (excluding fuel) and adjusted pre-tax margin, and 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)
|
Given the dynamic
nature of the current demand environment, actual capacity
adjustments made by the Company may be materially different than
what is currently expected.
|
|
|
|
(c)
|
Amount estimated
excludes fuel expense and special items, the latter of which are
not estimable at this time. The amount takes into consideration the
expected capacity change versus the prior year quarter.
|
|
|
|
(d)
|
Estimated fuel cost per
gallon is based upon the blended jet fuel curve on October 24, 2024
and is inclusive of estimated fuel taxes and into-plane fuel
costs.
|
|
|
|
(e)
|
The Company's actual
tax rate may differ from the forecasted rate due to varying factors
which may include, but are not limited to, the composition of items
of income and expense recognized, including the amount of
non-deductible or other similar items including but not limited to
any valuation allowance adjustments.
|
|
|
|
(f)
|
Other capital
expenditures estimate includes capitalized heavy
maintenance.
|
|
|
Conference Call
The Company will host a conference call to discuss third quarter
2024 results today, October 29, 2024, at 11:30 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
also 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 153 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 gallon consumed. With 193
new Airbus planes on order, Frontier will continue to grow to
deliver on the mission of providing affordable travel across
America.
End Notes
1 Amount represents the stage-length adjusted to
1,000 miles: RASM * Square root (stage length / 1,000).
2 Amount represents the stage-length adjusted to
1,000 miles: Adjusted CASM (excluding fuel) * Square root (stage
length / 1,000).
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 Current Report on
Form 8-K are based upon information available to the Company on the
date of this report. 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 potential
recession, 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 and 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; 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.
|
Frontier Group
Holdings, Inc.
Condensed Consolidated Statements of
Operations
(unaudited, in millions, except share and per
share data)
|
|
|
Three Months
Ended
September 30,
|
|
Percent
Change
|
|
Nine Months
Ended
September 30,
|
|
Percent
Change
|
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
910
|
|
$
862
|
|
6 %
|
|
$
2,705
|
|
$
2,637
|
|
3 %
|
|
Other
|
25
|
|
21
|
|
19 %
|
|
68
|
|
61
|
|
11 %
|
|
Total operating
revenues
|
935
|
|
883
|
|
6 %
|
|
2,773
|
|
2,698
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel
|
261
|
|
291
|
|
(10) %
|
|
812
|
|
827
|
|
(2) %
|
|
Salaries, wages and
benefits
|
236
|
|
221
|
|
7 %
|
|
713
|
|
635
|
|
12 %
|
|
Aircraft
rent
|
177
|
|
150
|
|
18 %
|
|
483
|
|
429
|
|
13 %
|
|
Station
operations
|
164
|
|
133
|
|
23 %
|
|
464
|
|
381
|
|
22 %
|
|
Maintenance, materials
and repairs
|
53
|
|
48
|
|
10 %
|
|
144
|
|
145
|
|
(1) %
|
|
Sales and
marketing
|
46
|
|
41
|
|
12 %
|
|
133
|
|
125
|
|
6 %
|
|
Depreciation and
amortization
|
19
|
|
13
|
|
46 %
|
|
53
|
|
36
|
|
47 %
|
|
Other
operating
|
(40)
|
|
40
|
|
N/M
|
|
(42)
|
|
120
|
|
N/M
|
|
Total operating
expenses
|
916
|
|
937
|
|
(2) %
|
|
2,760
|
|
2,698
|
|
2 %
|
|
Operating income
(loss)
|
19
|
|
(54)
|
|
N/M
|
|
13
|
|
—
|
|
N/M
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(10)
|
|
(8)
|
|
25 %
|
|
(27)
|
|
(21)
|
|
29 %
|
|
Capitalized
interest
|
8
|
|
7
|
|
14 %
|
|
24
|
|
19
|
|
26 %
|
|
Interest income and
other
|
10
|
|
10
|
|
— %
|
|
25
|
|
28
|
|
(11) %
|
|
Total other income
(expense)
|
8
|
|
9
|
|
(11) %
|
|
22
|
|
26
|
|
(15) %
|
|
Income (loss) before
income taxes
|
27
|
|
(45)
|
|
N/M
|
|
35
|
|
26
|
|
35 %
|
|
Income tax expense
(benefit)
|
1
|
|
(13)
|
|
N/M
|
|
4
|
|
—
|
|
N/M
|
|
Net income
(loss)
|
$
26
|
|
$
(32)
|
|
N/M
|
|
$
31
|
|
$
26
|
|
19 %
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(a)
|
$
0.11
|
|
$
(0.14)
|
|
N/M
|
|
$
0.14
|
|
$
0.12
|
|
17 %
|
|
Diluted
(a)
|
$
0.11
|
|
$
(0.14)
|
|
N/M
|
|
$
0.14
|
|
$
0.12
|
|
17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(a)
|
224,484,159
|
|
220,837,983
|
|
2 %
|
|
224,044,697
|
|
219,483,736
|
|
2 %
|
|
Diluted
(a)
|
225,716,252
|
|
220,837,983
|
|
2 %
|
|
226,115,706
|
|
220,638,883
|
|
2 %
|
|
|
|
N/M = Not
meaningful
|
|
|
(a)
|
In periods of net
income, the dilutive impact of the 3.1 million warrants outstanding
relating to funding provided pursuant to the CARES Act and related
legislation, any non-participating options and unvested restricted
stock units are included in the diluted earnings per share
calculations. In addition, most of the Company's 2.2 million
outstanding options are participating securities and are therefore
not expected to be part of the Company's diluted share count under
the two-class method until they are exercised, but, in periods of
net income, are included as an adjustment to the numerator of the
Company's earnings per share calculation as they are eligible to
participate in the Company's earnings. The participating securities
impact has been subtracted from periods presented with positive net
income in the computation of basic and diluted earnings per
share.
|
|
Frontier Group
Holdings, Inc.
Selected Operating
Statistics
(unaudited)
|
|
Three Months
Ended
September 30,
|
|
Percent
Change
|
|
Nine Months
Ended
September 30,
|
|
Percent
Change
|
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
|
Operating statistics
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Available seat miles
("ASMs") (millions)
|
10,075
|
|
9,697
|
|
4 %
|
|
30,073
|
|
27,809
|
|
8 %
|
|
Departures
|
56,725
|
|
48,627
|
|
17 %
|
|
162,567
|
|
136,747
|
|
19 %
|
|
Average stage length
(miles)
|
856
|
|
996
|
|
(14) %
|
|
901
|
|
1,028
|
|
(12) %
|
|
Block hours
|
140,348
|
|
133,305
|
|
5 %
|
|
419,911
|
|
385,129
|
|
9 %
|
|
Average aircraft in
service
|
150
|
|
128
|
|
17 %
|
|
144
|
|
124
|
|
16 %
|
|
Aircraft – end of
period
|
153
|
|
134
|
|
14 %
|
|
153
|
|
134
|
|
14 %
|
|
Average daily aircraft
utilization (hours)
|
10.2
|
|
11.3
|
|
(10) %
|
|
10.6
|
|
11.4
|
|
(7) %
|
|
Passengers
(thousands)
|
8,834
|
|
7,697
|
|
15 %
|
|
24,738
|
|
22,119
|
|
12 %
|
|
Average seats per
departure
|
206
|
|
200
|
|
3 %
|
|
204
|
|
198
|
|
3 %
|
|
Revenue passenger miles
("RPMs") (millions)
|
7,855
|
|
7,755
|
|
1 %
|
|
22,962
|
|
22,981
|
|
— %
|
|
Load Factor
|
78.0 %
|
|
80.0 %
|
|
(2.0)
pts
|
|
76.4 %
|
|
82.6 %
|
|
(6.2)
pts
|
|
Fare revenue per
passenger ($)
|
38.70
|
|
39.17
|
|
(1) %
|
|
41.26
|
|
43.65
|
|
(5) %
|
|
Non-fare passenger
revenue per passenger ($)
|
64.38
|
|
72.77
|
|
(12) %
|
|
68.09
|
|
75.57
|
|
(10) %
|
|
Other revenue per
passenger ($)
|
2.75
|
|
2.77
|
|
(1) %
|
|
2.72
|
|
2.74
|
|
(1) %
|
|
Total ancillary revenue
per passenger ($)
|
67.13
|
|
75.54
|
|
(11) %
|
|
70.81
|
|
78.31
|
|
(10) %
|
|
Total revenue per
passenger ($)
|
105.83
|
|
114.71
|
|
(8) %
|
|
112.07
|
|
121.96
|
|
(8) %
|
|
Total revenue per
available seat mile ("RASM") (¢)
|
9.28
|
|
9.10
|
|
2 %
|
|
9.22
|
|
9.70
|
|
(5) %
|
|
Cost per available seat
mile ("CASM") (¢)
|
9.10
|
|
9.66
|
|
(6) %
|
|
9.18
|
|
9.70
|
|
(5) %
|
|
CASM (excluding fuel)
(¢) (b)
|
6.51
|
|
6.66
|
|
(2) %
|
|
6.48
|
|
6.73
|
|
(4) %
|
|
CASM + net interest (¢)
(b)
|
9.02
|
|
9.56
|
|
(6) %
|
|
9.10
|
|
9.61
|
|
(5) %
|
|
Adjusted CASM (¢)
(b)
|
9.48
|
|
9.66
|
|
(2) %
|
|
9.30
|
|
9.70
|
|
(4) %
|
|
Adjusted CASM
(excluding fuel) (¢) (b)
|
6.89
|
|
6.66
|
|
3 %
|
|
6.60
|
|
6.72
|
|
(2) %
|
|
Adjusted CASM
(excluding fuel), stage-length adjusted to 1,000 miles (¢)
(b)(c)
|
6.37
|
|
6.65
|
|
(4) %
|
|
6.27
|
|
6.81
|
|
(8) %
|
|
Adjusted CASM + net
interest (¢) (b)
|
9.39
|
|
9.56
|
|
(2) %
|
|
9.23
|
|
9.60
|
|
(4) %
|
|
Fuel cost per gallon
($)
|
2.67
|
|
3.08
|
|
(13) %
|
|
2.81
|
|
3.07
|
|
(8) %
|
|
Fuel gallons consumed
(thousands)
|
97,767
|
|
94,459
|
|
4 %
|
|
289,114
|
|
269,425
|
|
7 %
|
|
Full-time equivalent
employees
|
8,011
|
|
6,959
|
|
15 %
|
|
8,011
|
|
6,959
|
|
15 %
|
|
|
|
(a)
|
Figures may not
recalculate due to rounding.
|
|
|
|
(b)
|
These metrics are not
calculated in accordance with GAAP. For the reconciliation to
corresponding GAAP measures, see "Reconciliation of CASM to CASM
(excluding fuel), Adjusted CASM (excluding fuel), Adjusted CASM,
Adjusted CASM including net interest and CASM including net
interest."
|
|
|
|
(c)
|
Stage-length adjusted
to 1,000 miles: Adjusted CASM (excluding fuel) * Square root (stage
length / 1,000).
|
Reconciliations of Non-GAAP Financial Information
The Company is providing below a reconciliation of GAAP
financial information to the non-GAAP financial information
provided. The non-GAAP financial information is included to provide
supplemental disclosures because the Company believes they are
useful additional indicators of, among other things, its operating
and cost performance. These non-GAAP financial measures have
limitations as analytical tools. Because of these limitations,
determinations of the Company's operating performance or CASM
excluding unrealized gains and losses, special items or other items
should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP. These
non-GAAP financial measures may be presented on a different basis
than other companies using similarly titled non-GAAP financial
measures.
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss) and Pre-Tax
Income (Loss) to
Adjusted Pre-Tax Income (Loss)
($ in millions)
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income (loss), as
reported
|
$
26
|
|
$
(32)
|
|
$
31
|
|
$
26
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
Legal
settlement(a)
|
(38)
|
|
—
|
|
(38)
|
|
—
|
|
Transaction and
merger-related costs(b)
|
—
|
|
—
|
|
—
|
|
1
|
|
Write-off of deferred
financing costs(c)
|
1
|
|
—
|
|
1
|
|
—
|
|
Pre-tax
impact
|
(37)
|
|
—
|
|
(37)
|
|
1
|
|
Tax benefit (expense),
related to non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
Valuation
allowance(d)
|
—
|
|
—
|
|
5
|
|
—
|
|
Net income (loss)
impact
|
$
(37)
|
|
$
—
|
|
(32)
|
|
1
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss)(e)
|
$
(11)
|
|
$
(32)
|
|
$
(1)
|
|
$
27
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes, as reported
|
$
27
|
|
$
(45)
|
|
$
35
|
|
$
26
|
|
Pre-tax
impact
|
(37)
|
|
—
|
|
(37)
|
|
1
|
|
Adjusted pre-tax
income (loss)(e)
|
$
(10)
|
|
$
(45)
|
|
$
(2)
|
|
$
27
|
|
|
|
(a)
|
The Company reached a
legal settlement with a former lessor for breach of contract for a
total of $40 million. $38 million of the settlement represents a
one-time reimbursement of damages incurred and $2 million relates
to the reimbursement of previously recorded legal
expenses.
|
|
|
|
(b)
|
Represents $1 million
in employee retention costs incurred in connection with the
terminated merger with Spirit Airlines, Inc., for the nine months
ended September 30, 2023.
|
|
|
|
(c)
|
In September 2024, the
Company reduced its existing capacity of the PDP financing facility
from $365 million to $135 million. The downsize of the facility
resulted in a one-time write-off of $1 million in unamortized
deferred financing costs. This amount is a component of interest
expense within the condensed consolidated statements of
operations.
|
|
|
|
(d)
|
During the nine months
ended September 30, 2024, a $5 million non-cash valuation allowance
was recorded against the Company's U.S. federal and state net
operating loss deferred tax assets, which largely do not expire,
mainly as a result of being in a three-year historical cumulative
pre-tax loss position and due to the loss generated during the
three months ended March 31, 2024, which has no impact on cash
taxes and is not reflective of the Company's effective tax rate for
deductible net operating losses generated or actual cash tax
obligations created.
|
|
|
|
(e)
|
Adjusted net income
(loss) and adjusted pre-tax income (loss) are included as a
supplemental disclosure because the Company believes they are
useful indicators of its operating performance. Derivations of net
income (loss) and pre-tax income (loss) are well-recognized
performance measurements in the airline industry that are
frequently used by the Company's management, as well as by
investors, securities analysts and other interested parties, in
comparing the operating performance of companies in the airline
industry.
|
|
|
|
Adjusted net income
(loss) and adjusted pre-tax income (loss) have limitations as
analytical tools. Adjusted net income (loss) and adjusted pre-tax
income (loss) do not reflect the impact of certain cash charges
resulting from matters the Company considers not to be indicative
of the Company's ongoing operations and do not reflect the
Company's cash expenditures, or future requirements, for capital
expenditures or contractual commitments, and other companies in the
industry may calculate adjusted net income (loss) and adjusted
pre-tax income (loss) differently than the Company does, limiting
their usefulness as comparative measures. Because of these
limitations, adjusted net income (loss) and adjusted pre-tax income
(loss) should not be considered in isolation from or as a
substitute for performance measures calculated in accordance with
GAAP. In addition, because derivations of adjusted net income
(loss) and adjusted pre-tax income (loss), including adjusted
pre-tax margin, are not determined in accordance with GAAP, such
measures are susceptible to varying calculations and not all
companies calculate the measures in the same manner. As a result,
derivations of net income, including adjusted net income (loss) and
adjusted pre-tax income (loss), as presented may not be directly
comparable to similarly titled measures presented by other
companies. For the foregoing reasons, adjusted net income (loss)
and adjusted pre-tax income (loss) have significant limitations
which affect their use as indicators of the Company's
profitability. Accordingly, you are cautioned not to place undue
reliance on this information.
|
|
Reconciliation of
Total Operating Expenses to Total Operating Expenses (excluding
fuel), Adjusted
Total Operating Expenses and Adjusted Total Operating Expenses
(excluding fuel)
($ in millions)
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Total operating
expenses, as reported(a)
|
$
916
|
|
$
937
|
|
$
2,760
|
|
$
2,698
|
|
Legal
settlement
|
38
|
|
—
|
|
38
|
|
—
|
|
Transaction and
merger-related costs
|
—
|
|
—
|
|
—
|
|
(1)
|
|
Adjusted total
operating expenses(b)
|
954
|
|
937
|
|
2,798
|
|
2,697
|
|
Aircraft
fuel
|
(261)
|
|
(291)
|
|
(812)
|
|
(827)
|
|
Adjusted total
operating expenses (excluding fuel)(b)
|
$
693
|
|
$
646
|
|
$
1,986
|
|
$
1,870
|
|
|
|
|
|
|
|
|
|
Total operating
expenses, as reported
|
$
916
|
|
$
937
|
|
$
2,760
|
|
$
2,698
|
|
Aircraft
fuel
|
(261)
|
|
(291)
|
|
(812)
|
|
(827)
|
|
Total operating
expenses (excluding fuel)(b)
|
$
655
|
|
$
646
|
|
$
1,948
|
|
$
1,871
|
|
|
|
(a)
|
See "Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss) and Pre-Tax Income
(Loss) to Adjusted Pre-tax Income (Loss)" above for discussion on
adjusting items.
|
|
|
|
(b)
|
Total operating
expenses (excluding fuel), adjusted total operating expenses and
adjusted total operating expenses (excluding fuel) are included as
supplemental disclosures because the Company believes they are
useful indicators of its operating performance. Derivations of
total operating expenses are well-recognized performance
measurements in the airline industry that are frequently used by
the Company's management, as well as by investors, securities
analysts and other interested parties, in comparing the operating
performance of companies in the airline industry.
|
|
|
|
Total operating
expenses (excluding fuel), adjusted total operating expenses and
adjusted total operating expenses (excluding fuel) have limitations
as analytical tools and other companies in the industry may
calculate total operating expenses (excluding fuel), adjusted total
operating expenses and adjusted total operating expenses (excluding
fuel) differently than the Company does, limiting their usefulness
as comparative measures. Because of these limitations, total
operating expenses (excluding fuel), adjusted total operating
expenses and adjusted total operating expenses (excluding fuel)
should not be considered in isolation from or as a substitute for
performance measures calculated in accordance with GAAP. In
addition, because derivations of total operating expenses
(excluding fuel), adjusted total operating expenses and adjusted
total operating expenses (excluding fuel) are not determined in
accordance with GAAP, such measures are susceptible to varying
calculations and not all companies calculate the measures in the
same manner. As a result, derivations of total operating expenses,
including total operating expenses (excluding fuel), adjusted total
operating expenses and adjusted total operating expenses (excluding
fuel) as presented may not be directly comparable to similarly
titled measures presented by other companies. For the foregoing
reasons, total operating expenses (excluding fuel), adjusted total
operating expenses and adjusted total operating expenses (excluding
fuel) have significant limitations which affect their use as an
indicator of the Company's profitability. Accordingly, you are
cautioned not to place undue reliance on this
information.
|
|
Reconciliation of
Net Income (Loss) to EBITDA and EBITDAR and to Adjusted EBITDA and
Adjusted
EBITDAR
($ in millions) (unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
(loss)
|
$
26
|
|
$
(32)
|
|
$
31
|
|
$
26
|
|
Plus
(minus):
|
|
|
|
|
|
|
|
|
Interest
expense
|
10
|
|
8
|
|
27
|
|
21
|
|
Capitalized
interest
|
(8)
|
|
(7)
|
|
(24)
|
|
(19)
|
|
Interest income and
other
|
(10)
|
|
(10)
|
|
(25)
|
|
(28)
|
|
Income tax expense
(benefit)
|
1
|
|
(13)
|
|
4
|
|
—
|
|
Depreciation and
amortization
|
19
|
|
13
|
|
53
|
|
36
|
|
EBITDA(a)
|
38
|
|
(41)
|
|
66
|
|
36
|
|
Plus: Aircraft
rent
|
177
|
|
150
|
|
483
|
|
429
|
|
EBITDAR(b)
|
$
215
|
|
$
109
|
|
$
549
|
|
$
465
|
|
|
|
|
|
|
|
|
|
EBITDA(a)
|
$
38
|
|
$
(41)
|
|
$
66
|
|
$
36
|
|
Plus
(minus)(c):
|
|
|
|
|
|
|
|
|
Legal
settlement
|
(38)
|
|
—
|
|
(38)
|
|
—
|
|
Transaction and
merger-related costs
|
—
|
|
—
|
|
—
|
|
1
|
|
Adjusted
EBITDA(a)
|
—
|
|
(41)
|
|
28
|
|
37
|
|
Plus: Aircraft
rent
|
177
|
|
150
|
|
483
|
|
429
|
|
Adjusted
EBITDAR(b)
|
$
177
|
|
$
109
|
|
$
511
|
|
$
466
|
|
|
|
(a)
|
EBITDA and adjusted
EBITDA are included as supplemental disclosures because the Company
believes they are useful indicators of its operating performance.
Derivations of EBITDA are well-recognized performance measurements
in the airline industry that are frequently used by the Company's
management, as well as by investors, securities analysts and other
interested parties, in comparing the operating performance of
companies in the industry.
|
|
|
|
EBITDA and adjusted
EBITDA do not reflect the impact of certain cash charges resulting
from matters the Company considers not to be indicative of its
ongoing operations; the Company's cash expenditures, or future
requirements, for capital expenditures or contractual commitments;
changes in, or cash requirements for, the Company's working capital
needs; or the interest expense, or the cash requirements necessary
to service interest or principal payments, on the Company's
indebtedness or possible cash requirements related to its warrants.
Further, although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized will often have
to be replaced in the future, and EBITDA and adjusted EBITDA do not
reflect any cash requirements for such replacements. Other
companies in the airline industry may calculate EBITDA and adjusted
EBITDA differently than the Company does, limiting their usefulness
as comparative measures. Because of these limitations, EBITDA and
adjusted EBITDA should not be considered in isolation from or as a
substitute for performance measures calculated in accordance with
GAAP. In addition, because derivations of EBITDA and adjusted
EBITDA are not determined in accordance with GAAP, such measures
are susceptible to varying calculations and not all companies
calculate the measures in the same manner. As a result, derivations
of EBITDA, including adjusted EBITDA, as presented may not be
directly comparable to similarly titled measures presented by other
companies.
|
|
|
|
For the foregoing
reasons, each of EBITDA and adjusted EBITDA have significant
limitations which affect its use as an indicator of the Company's
profitability. Accordingly, you are cautioned not to place undue
reliance on this information.
|
|
|
|
(b)
|
EBITDAR and adjusted
EBITDAR are included as supplemental disclosures because the
Company believes they are useful solely as valuation metrics for
airlines as their calculations isolate the effects of financing in
general, the accounting effects of capital spending and
acquisitions (primarily aircraft, which may be acquired directly,
directly subject to acquisition debt, by capital lease or by
operating lease, each of which is presented differently for
accounting purposes), and income taxes, which may vary
significantly between periods and for different airlines for
reasons unrelated to the underlying value of a particular airline.
However, EBITDAR and adjusted EBITDAR are not determined in
accordance with GAAP, are susceptible to varying calculations and
not all companies calculate the measures in the same manner. As a
result, EBITDAR and adjusted EBITDAR, as presented, may not be
directly comparable to similarly titled measures presented by other
companies. In addition, EBITDAR and adjusted EBITDAR should not be
viewed as a measure of overall performance since they exclude
aircraft rent, which is a normal, recurring cash operating expense
that is necessary to operate the business. Accordingly, you are
cautioned not to place undue reliance on this
information.
|
|
|
|
(c)
|
See "Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss) and Pre-Tax Income
(Loss) to Adjusted Pre-tax Income (Loss)" above for discussion on
adjusting items.
|
|
Reconciliation of
CASM to CASM (excluding fuel), Adjusted CASM (excluding fuel),
Adjusted CASM,
Adjusted CASM including net interest and CASM including net
interest
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
2024
|
|
2023
|
|
($ in
millions)
|
|
Per ASM
(¢)
|
|
($ in
millions)
|
|
Per ASM
(¢)
|
|
CASM(a)(b)
|
|
|
9.10
|
|
|
|
9.66
|
|
Aircraft
fuel
|
(261)
|
|
(2.59)
|
|
(291)
|
|
(3.00)
|
|
CASM (excluding
fuel)(c)
|
|
|
6.51
|
|
|
|
6.66
|
|
Legal
settlement
|
38
|
|
0.38
|
|
—
|
|
—
|
|
Adjusted CASM
(excluding fuel)(c)
|
|
|
6.89
|
|
|
|
6.66
|
|
Aircraft
fuel
|
261
|
|
2.59
|
|
291
|
|
3.00
|
|
Adjusted
CASM(d)
|
|
|
9.48
|
|
|
|
9.66
|
|
Net interest expense
(income)
|
(8)
|
|
(0.08)
|
|
(9)
|
|
(0.10)
|
|
Write-off of deferred
financing costs
|
(1)
|
|
(0.01)
|
|
—
|
|
—
|
|
Adjusted CASM + net
interest(e)
|
|
|
9.39
|
|
|
|
9.56
|
|
|
|
|
|
|
|
|
|
CASM
|
|
|
9.10
|
|
|
|
9.66
|
|
Net interest expense
(income)
|
(8)
|
|
(0.08)
|
|
(9)
|
|
(0.10)
|
|
CASM + net
interest(e)
|
|
|
9.02
|
|
|
|
9.56
|
|
|
|
(a)
|
Cost per ASM
figures may not recalculate due to rounding.
|
|
|
|
(b)
|
See "Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss) and Pre-Tax Income
(Loss) to Adjusted Pre-tax Income (Loss)" above for discussion on
adjusting items.
|
|
|
|
(c)
|
CASM (excluding fuel)
and adjusted CASM (excluding fuel) are included as supplemental
disclosures because the Company believes that excluding aircraft
fuel is useful to investors as it provides an additional measure of
management's performance excluding the effects of a significant
cost item over which management has limited influence. The price of
fuel, over which the Company has limited control, impacts the
comparability of period-to-period financial performance, and
excluding allows management an additional tool to understand and
analyze the Company's non-fuel costs and core operating
performance, and increases comparability with other airlines that
also provide a similar metric. CASM (excluding fuel) and adjusted
CASM (excluding fuel) are not determined in accordance with GAAP
and should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP.
|
|
|
|
(d)
|
Adjusted CASM is
included as supplemental disclosure because the Company believes it
is a useful metric to properly compare the Company's cost
management and performance to other peers, as derivations of
adjusted CASM are well-recognized performance measurements in the
airline industry that are frequently used by the Company's
management, as well as by investors, securities analysts and other
interested parties in comparing the operating performance of
companies in the airline industry. Additionally, the Company
believes this metric is useful because it removes certain items
that may not be indicative of base operating performance or future
results. Adjusted CASM is not determined in accordance with GAAP,
may not be comparable across all carriers and should not be
considered in isolation or as a substitute for performance measures
calculated in accordance with GAAP.
|
|
|
|
(e)
|
Adjusted CASM including
net interest and CASM including net interest are included as
supplemental disclosures because the Company believes they are
useful metrics to properly compare its cost management and
performance to other peers that may have different capital
structures and financing strategies, particularly as it relates to
financing primary operating assets such as aircraft and engines.
Additionally, the Company believes these metrics are useful because
they remove certain items that may not be indicative of base
operating performance or future results. Adjusted CASM including
net interest and CASM including net interest are not determined in
accordance with GAAP, may not be comparable across all carriers and
should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP.
|
|
Reconciliation of
CASM to CASM (excluding fuel), Adjusted CASM (excluding fuel),
Adjusted CASM,
Adjusted CASM including net interest and CASM including net
interest
(unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
($ in
millions)
|
|
Per ASM
(¢)
|
|
($ in
millions)
|
|
Per ASM
(¢)
|
|
CASM(a)(b)
|
|
|
9.18
|
|
|
|
9.70
|
|
Aircraft
fuel
|
(812)
|
|
(2.70)
|
|
(827)
|
|
(2.97)
|
|
CASM (excluding
fuel)(c)
|
|
|
6.48
|
|
|
|
6.73
|
|
Legal
settlement
|
38
|
|
0.12
|
|
—
|
|
—
|
|
Transaction and
merger-related costs
|
—
|
|
—
|
|
(1)
|
|
(0.01)
|
|
Adjusted CASM
(excluding fuel)(c)
|
|
|
6.60
|
|
|
|
6.72
|
|
Aircraft
fuel
|
812
|
|
2.70
|
|
827
|
|
2.98
|
|
Adjusted
CASM(d)
|
|
|
9.30
|
|
|
|
9.70
|
|
Net interest expense
(income)
|
(22)
|
|
(0.08)
|
|
(26)
|
|
(0.10)
|
|
Write-off of deferred
financing costs
|
(1)
|
|
0.01
|
|
—
|
|
—
|
|
Adjusted CASM + net
interest(e)
|
|
|
9.23
|
|
|
|
9.60
|
|
|
|
|
|
|
|
|
|
CASM
|
|
|
9.18
|
|
|
|
9.70
|
|
Net interest expense
(income)
|
(22)
|
|
(0.08)
|
|
(26)
|
|
(0.09)
|
|
CASM + net
interest(e)
|
|
|
9.10
|
|
|
|
9.61
|
|
|
|
(a)
|
Cost per ASM
figures may not recalculate due to rounding.
|
|
|
|
(b)
|
See "Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss) and Pre-Tax Income
(Loss) to Adjusted Pre-tax Income (Loss)" above for discussion on
adjusting items.
|
|
|
|
(c)
|
CASM (excluding fuel)
and adjusted CASM (excluding fuel) are included as supplemental
disclosures because the Company believes that excluding aircraft
fuel is useful to investors as it provides an additional measure of
management's performance excluding the effects of a significant
cost item over which management has limited influence. The price of
fuel, over which the Company has limited control, impacts the
comparability of period-to-period financial performance, and
excluding allows management an additional tool to understand and
analyze the Company's non-fuel costs and core operating
performance, and increases comparability with other airlines that
also provide a similar metric. CASM (excluding fuel) and adjusted
CASM (excluding fuel) are not determined in accordance with GAAP
and should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP.
|
|
|
|
(d)
|
Adjusted CASM is
included as supplemental disclosure because the Company believes it
is a useful metric to properly compare the Company's cost
management and performance to other peers, as derivations of
adjusted CASM are well-recognized performance measurements in the
airline industry that are frequently used by the Company's
management, as well as by investors, securities analysts and other
interested parties in comparing the operating performance of
companies in the airline industry. Additionally, the Company
believes this metric is useful because it removes certain items
that may not be indicative of base operating performance or future
results. Adjusted CASM is not determined in accordance with GAAP,
may not be comparable across all carriers and should not be
considered in isolation or as a substitute for performance measures
calculated in accordance with GAAP.
|
|
|
|
(e)
|
Adjusted CASM including
net interest and CASM including net interest are included as
supplemental disclosures because the Company believes they are
useful metrics to properly compare its cost management and
performance to other peers that may have different capital
structures and financing strategies, particularly as it relates to
financing primary operating assets such as aircraft and engines.
Additionally, the Company believes these metrics are useful because
they remove certain items that may not be indicative of base
operating performance or future results. Adjusted CASM including
net interest and CASM including net interest are not determined in
accordance with GAAP, may not be comparable across all carriers and
should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP.
|
|
Reconciliation of
Earnings (Loss) per Share, Diluted to Adjusted Earnings (Loss) per
Share, Diluted
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Earnings (loss) per
share, diluted, as reported(a)(b)
|
$
0.11
|
|
$
(0.14)
|
|
$
0.14
|
|
$
0.12
|
|
Legal
settlement
|
(0.17)
|
|
—
|
|
(0.17)
|
|
—
|
|
Transaction and
merger-related costs
|
—
|
|
—
|
|
—
|
|
—
|
|
Write-off of deferred
financing costs
|
0.01
|
|
—
|
|
0.01
|
|
—
|
|
Tax benefit (expense),
related to non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
Valuation
allowance
|
—
|
|
—
|
|
0.02
|
|
—
|
|
Adjusted earnings
(loss) per share, diluted(c)
|
$
(0.05)
|
|
$
(0.14)
|
|
$
—
|
|
$
0.12
|
|
|
|
(a)
|
See "Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss) and Pre-Tax Income
(Loss) to Adjusted Pre-tax Income (Loss)" above for discussion on
adjusting items.
|
|
|
|
(b)
|
Cost per share figures
may not recalculate due to rounding.
|
|
|
|
(c)
|
Adjusted earnings
(loss) per share is included as a supplemental disclosure because
the Company believes it is a useful indicator of operating
performance. Derivations of net income are well-recognized
performance measurements in the airline industry that are
frequently used by management, as well as by investors, securities
analysts and other interested parties in comparing the operating
performance of companies in the industry.
|
|
|
|
Adjusted earnings
(loss) per share has limitations as an analytical tool. Adjusted
earnings (loss) per share does not reflect the impact of certain
cash charges resulting from matters the Company considers not to be
indicative of ongoing operations and does not reflect the cash
expenditures, or future requirements, for capital expenditures or
contractual commitments, and other companies in the industry may
calculate Adjusted earnings (loss) per share differently than the
Company does, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted earnings (loss) per share
should not be considered in isolation from or as a substitute for
performance measures calculated in accordance with GAAP. In
addition, because derivations of adjusted net income are not
determined in accordance with GAAP, such measures are susceptible
to varying calculations and not all companies calculate the
measures in the same manner. As a result, derivations of net
income, including Adjusted earnings (loss) per share, as presented
may not be directly comparable to similarly titled measures
presented by other companies. For the foregoing reasons, Adjusted
earnings (loss) per share has significant limitations which affect
its use as an indicator of profitability. Accordingly, you are
cautioned not to place undue reliance on this
information.
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/frontier-airlines-reports-third-quarter-2024-financial-results-302289696.html
SOURCE Frontier Group Holdings, Inc.