Frontier Group Holdings (ULCC) Q4 2024 Earnings
How Did ULCC Stock React to Q4 2024 Earnings?
S&P 500 over the same 30 days: −6.97%.
Did ULCC Beat Earnings? Q4 2024 Results
Yes. Frontier Group Holdings reported Q4 2024 earnings of $0.23 a share on Feb 7, 2025, beating the $0.13 consensus estimate by 82.7%. Revenue was $1.0B against a $986.5M estimate.
Frontier Group Holdings capped 2024 with a sharply stronger fourth quarter, posting adjusted diluted EPS of $0.23 against a consensus estimate of $0.13, a beat of roughly 82.68%, while revenue of $1.00 billion edged past the $986.50 million consensus and climbed 12.5% from the year-ago period. The turnaround was most visible on the bottom line, where the carrier swung to GAAP net income of $54.00 million from a net loss of $37.00 million in Q4 2023, driven largely by a 15% year-over-year surge in RASM to 10.23 cents as Frontier concentrated capacity on peak travel days rather than chasing volume. That disciplined approach helped lift total revenue per passenger 6% to $117, even as average daily aircraft utilization fell 15% and CASM edged up to 9.78 cents. Looking ahead, management guided full-year 2025 adjusted EPS of at least $1.00, targeting double-digit adjusted pre-tax margins by summer, supported by continued RASM growth and a cost structure it says runs roughly 48% below the industry average on a stage-adjusted basis.
- RASM increased 15% YoY to 10.23 cents driven by disciplined capacity deployment on peak days
- Revenue and network initiatives contributing to record quarterly revenue
- Moderation in industry capacity growth benefiting pricing
- Total revenue per passenger increased 6% to $117
- Fare revenue per passenger increased 26% to $48.40
- Fuel cost decreased 22% YoY to $2.48 per gallon
- A320neo family aircraft now comprise 82% of fleet, highest among major U.S. carriers
- Record fuel efficiency at 106 ASMs per gallon
“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.”
Frontier Group Holdings CEO, on the earnings call
What Was Frontier Group Holdings's Outlook in Q4 2024?
For Q1 2025, Frontier guided adjusted non-GAAP diluted EPS in the range of breakeven to $0.07. For full-year 2025, the company expects adjusted non-GAAP diluted EPS of at least $1.00, with pre-delivery deposits (net of refunds) of $10-45 million and other capital expenditures (including capitalized heavy maintenance) of $175-235 million. The company targets double-digit adjusted pre-tax margins in summer 2025, supported by continued RASM growth, disciplined capacity allocation between peak and off-peak days, and its significant cost advantage versus the industry. Fuel cost guidance is based on average fuel cost of $2.60/gallon for Q1 2025 and $2.55/gallon for full-year 2025.
ULCC YoY Financials
| Metric | Q4 2024 | Q4 2023 | Year over year |
|---|---|---|---|
| Revenue | $1.0B | $891.0M | +12.5% |
| Operating Income | $45.0M | $2.6M | +1,600.0% |
| Net Income | $54.0M | $15.6M | +246.0% |
ULCC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.