"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." Frontier Airlines Reports Third Quarter 202 ...

KEY TAKEAWAYSSpirit Airlines shares are surging in premarket trading Wednesday on a report that Frontier Airlines parent Frontier Group Holdings is in the early stages of a renewed bid for its rival discount carrier.The Wall Street Journal said the two sides have had recent discussions and the deal would form part of Spirit's debt restructuring.Spirit is currently in the midst of discussions with bondholders ahead of a potential bankruptcy filing, the report said, noting that merger talks are in early stage ...

Core Viewpoint - Glendon Capital Management LP opposes the proposed acquisition of Frontier Communications by Verizon at the current price, arguing that it significantly undervalues Frontier's assets and earnings trajectory [1][2]. Group 1: Valuation and Financial Analysis - Glendon believes Frontier's enterprise value is at least $26 billion, which is 30% higher than the $20 billion enterprise value derived from the Verizon transaction [2]. - The valuation is based on an analysis of recent comparable transactions and Frontier's expected future cash flows [2]. Group 2: Governance and Shareholder Engagement - Glendon expressed disappointment with Frontier's Board for hastily setting the record date and special meeting of stockholders, urging an extension of both dates to allow shareholders to fully understand Frontier's standalone case [2].

Three passengers filed a lawsuit against Frontier Airlines over claims they suffered injuries when a flight caught on fire while landing at an airport in Las Vegas earlier this month. Eddie Frierson, Alberto Cardoso, and Ana Figueroa-Cueva were passengers on Frontier Flight 1326 from San Diego, California, to Las Vegas, Nevada, when the fiery aircraft landed at Harry Reid International Airport on Oct. 5.The plaintiffs claimed that the plane "violently crash-landed" at the airport without warning, Fox 5 Vega ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Frontier Group Holdings (ULCC) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 29, 2024, might help the stock move higher if these key numbers are ...

Core Argument - Carronade Capital believes Verizon's offer of $38.50 per share for Frontier Communications is insufficient compared to Frontier's intrinsic value of at least $48.60 per share [2] - The proposed transaction does not represent fair value to Frontier shareholders, and Carronade encourages shareholders to vote against it [2] Financial Analysis - Third-party analyses support a higher standalone valuation range for Frontier, with estimates ranging from $47.88 to $60+ per share before synergy value [2] - Recent fiber transactions have been valued at low to mid 20's x TEV/EBITDA, and applying a discounted multiple of 15x to Frontier's Fiber EBITDA supports a $48.60 per share valuation [3] - The conservative valuation excludes value from Frontier's non-fiber business, which generated $756 million in LTM EBITDA [3] Synergy Analysis - Verizon expects at least $500 million in opex run-rate synergies, with potential for more, including capex synergies [4] - Verizon anticipates a 50% reduction in mobility churn and a 40% reduction in fiber churn, leading to immediate revenue and EBITDA accretion [4] - Verizon plans to extend premium offerings to Frontier's customers and generate revenue from mobile and home conversions, including cross-selling benefits [4] Strategic Importance - Frontier provides Verizon with a combined 25 million fiber passings in 31 states and Washington DC, significantly expanding Verizon's fiber footprint [5] - The acquisition accelerates Verizon's delivery of premium mobility and broadband services and powers its Intelligent Edge Network for digital innovation like AI and IoT [5] - Verizon views the acquisition as accretive from day one on revenue growth and EBITDA, with EPS and cash flow accretion expected within a year [5] Shareholder Concerns - The proxy process appears rushed, with the final proxy filed after market close on October 7, 2024, and the record date set for the same day, limiting shareholder review [6] - The lengthy regulatory approval process and expected inflection in Frontier's results suggest shareholders should have more time to evaluate the transaction [7] Conclusion - Carronade Capital intends to vote against the proposed transaction and encourages other shareholders to do the same until a fair share of the value created by the combined enterprise is offered [7][8]

Michael (Mike) Dion is an FP&A, Corporate Finance, and Small Business expert who spent the last 12 years working in the Fortune 100, building a startup's finance and accounting department, advising small businesses, and guiding non-profit organizations as a board member. He has finance experience across multiple industries, including Telecom, Media and Entertainment, Hospitality, and Construction. He founded F9 Finance, a website that helps Finance professionals accelerate their careers; and simplifies Fina ...

Frontier Group Holdings (ULCC) shares soared 16.4% in the last trading session to close at $5.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.6% gain over the past four weeks. This jump in stock price came after news that Spirit Airlines (SAVE) , a Frontier Group Holdings rival in the low-cost airline space, is considering bankruptcy. Spirit has faced losses and declining revenue due to fierce competition and the failed at ...

A rival is on the fiscal ropes, and could be partially (or even wholly) going away in the near future. Shares of Frontier Airlines parent Frontier Group Holdings (ULCC 18.34%) are up 18% as of midday Friday, followed closely by JetBlue Airways' (JBLU 14.08%) 16% surge. Both rallies are in response to reports that rival carrier Spirit Airlines (SAVE -26.56%) is considering filing for bankruptcy. If true, it could mean the sale of part or all of the struggling airline. Bankruptcy imminent? Take the report wit ...

Key Takeaways Shares of discount airlines Frontier Group Holdings and JetBlue soared on a report that rival Spirit Airlines is holding discussions about a possible bankruptcy. The Wall Street Journal said Spirit is holding talks with bondholders and other creditors about a Chapter 11 filing. Spirit Airlines shares spiraled on the news, hitting an all-time low. Shares of Frontier Group Holdings (ULCC) and JetBlue Airways (JBLU) took off Friday on a report that discount airline rival Spirit Airlines (SAVE) is ...