Frontier Group Holdings, Inc. (NASDAQ: ULCC), parent company of Frontier Airlines, Inc., saw its shares dive Tuesday on reporting financial results for the third quarter of 2024.
• Total operating revenues were $935 million, 6% higher than the comparable 2023 quarter, on a 4% increase in capacity
• Revenue per available seat mile (“RASM”) was 9.28 cents, 2% higher than the comparable 2023 quarter
• RASM on a stage-length adjusted basis to 1,000 miles, a non-GAAP measure, was 8.59 cents, 5% 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% over the comparable 2023 quarter
• Adjusted CASM (excluding fuel), a non-GAAP measure, was 6.89 cents, on a 14% shorter average stage length; adjusted CASM (excluding fuel) on a stage-length adjusted basis to 1,000 miles, a non-GAAP measure, was 4% lower than the comparable 2023 quarter
• Pre-tax income margin was 2.9% and adjusted (non-GAAP) pre-tax loss margin was 1.1% 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.
ULCC shares lost $1.39, or 19.1%, to $5.88.
