Financial Data and Key Metrics Changes - Total operating revenue for the first quarter increased by 5% year-over-year to $912 million, driven by a 5% increase in capacity [7][17] - Fuel expenses totaled $238 million, which is 10% lower than the previous quarter, due to a 13% decrease in average fuel cost [17] - The first quarter pretax loss was $40 million, yielding a 4.4% loss margin, with a net loss of $43 million or $0.19 per share [19][20] Business Line Data and Key Metrics Changes - Revenue per available seat mile (RASM) was approximately $0.09, roughly in line with the prior year quarter, while total revenue per passenger was $116, down 6% [7][17] - Employment increased by 12%, and departures were up by 6% on an average stage length of 925 miles, which is 3% below the prior year quarter [8] Market Data and Key Metrics Changes - The company experienced a significant impact on demand in March due to macroeconomic uncertainty, leading to aggressive pricing and promotions across the industry [4][5] - Current booking trends suggest that demand for May and early summer travel has stabilized, indicating a potential recovery [5][20] Company Strategy and Development Direction - The company is focusing on capacity management and cost control, with planned capacity reductions expected to save over $300 million in costs and capital expenditures [5][20] - The introduction of new product offerings and loyalty upgrades aims to enhance customer engagement and provide better value compared to competitors [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic factors but expressed optimism about stabilizing demand and the potential for profitability in the second half of the year [5][20] - The company is adjusting its capacity deployment to align with the changing demand environment, particularly focusing on off-peak flying [9][32] Other Important Information - The company has implemented several enhancements to its loyalty program, which have shown strong early results, including a 30% year-over-year increase in spend [14][82] - The fleet strategy includes extending leases on 14 aircraft to optimize maintenance costs and align with operational needs [19][73] Q&A Session Summary Question: Average fare decline and impact of premium products - Management noted that premium products are performing well, but the average fare decline was primarily due to concentrated capacity in March and lower load factors [24][27] Question: Capacity adjustments and focus on core markets - Management confirmed that capacity reductions would lead to a focus on core profitable markets, with expectations for a decrease in developmental markets [30][32] Question: Return to profitability in the second half - Management indicated that profitability would be driven by cost reductions and improved demand, with adjustments to capacity expected to support this goal [36][39] Question: Competitive landscape and market conditions - Management acknowledged that both low-cost and high-cost carriers have flooded certain markets, but noted signs of moderation and recovery in demand [86][88] Question: Loyalty program performance - Management highlighted strong growth in the loyalty program, with increased engagement and spend rates, indicating a positive trajectory [81][82] Question: Fleet delivery and engine availability - Management confirmed a slight shift in aircraft deliveries but noted no significant issues with engine availability [118][119]

Financial Performance - Total operating revenues for Q1 2025 were $912 million, an increase of 5.4% from $865 million in Q1 2024[15] - Passenger revenue increased to $884 million in Q1 2025, up from $845 million in Q1 2024, reflecting a growth of 4.6%[15] - Total operating expenses rose to $958 million in Q1 2025, compared to $896 million in Q1 2024, marking an increase of 6.9%[15] - Net loss for Q1 2025 was $43 million, compared to a net loss of $26 million in Q1 2024, representing a deterioration of 65.4%[15] - Operating income for Q1 2025 was a loss of $46 million, compared to a loss of $31 million in Q1 2024[15] - The company reported a basic and diluted loss per share of $0.19 for Q1 2025, compared to a loss of $0.12 per share in Q1 2024[15] - Total operating revenues for the three months ended March 31, 2025, were $912 million, a 5.4% increase from $865 million in the same period of 2024[31] - Total operating revenue increased by $47 million, or 5%, to $912 million for the three months ended March 31, 2025, compared to $865 million in the same period of 2024[111] - Adjusted net income for Q1 2025 was $(43) million, compared to $(21) million in Q1 2024, reflecting a decline of 104.8%[129] - EBITDA for Q1 2025 was $(26) million, compared to $(15) million in Q1 2024, indicating a decrease of 73.3%[129] - EBITDAR for Q1 2025 was $135 million, down from $144 million in Q1 2024, a decline of 6.3%[129] Cash and Liquidity - Cash and cash equivalents decreased to $686 million as of March 31, 2025, down from $740 million at the end of 2024[11] - Total available liquidity as of March 31, 2025, was $889 million, including $205 million available under the revolving line of credit[110] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $686 million, a decrease from $740 million at the beginning of the period[145] - Net cash used in operating activities for Q1 2025 was $86 million, compared to $22 million in Q1 2024, driven by a net loss of $43 million[145] - Net cash used in investing activities for Q1 2025 totaled $29 million, an increase from $7 million in Q1 2024[149] - Net cash provided by financing activities was $61 million in Q1 2025, up from $42 million in Q1 2024, primarily due to increased air traffic liability from higher bookings[150] Assets and Liabilities - Total assets increased to $6,481 million as of March 31, 2025, compared to $6,153 million at the end of 2024, reflecting a growth of 5.3%[11] - Total liabilities rose to $5,911 million as of March 31, 2025, up from $5,549 million at the end of 2024, an increase of 6.5%[12] - The Company's total debt as of March 31, 2025, was $512 million, slightly up from $507 million as of December 31, 2024[34] - Other current liabilities totaled $497 million as of March 31, 2025, compared to $500 million as of December 31, 2024[33] - Total debt, net, as of March 31, 2025, was $507 million, with $263 million classified as short-term[135] - The debt to capital ratio increased to 47% as of March 31, 2025, compared to 45% at the end of 2024[138] Operational Metrics - Available seat miles (ASMs) increased by 5% to 9,949 million in Q1 2025 from 9,446 million in Q1 2024[104] - Total passengers increased by 834 thousand, or 12%, to 7,839 thousand, with a 6% increase in departures[111] - Load factor improved by 2.2 percentage points to 74.9% in Q1 2025 from 72.7% in Q1 2024[132] - Revenue per available seat mile (RASM) remained flat in Q1 2025, despite a 12% increase in passengers and a 6% decline in revenue per passenger[105] - CASM (excluding fuel) increased by 8% to 7.24 cents per ASM, while total CASM rose to 9.63 cents per ASM[113][124] Expenses - Total operating expenses for Q1 2025 increased to $958 million, up 7% from $896 million in Q1 2024[104] - Aircraft fuel expense decreased by $25 million, or 10%, to $238 million, primarily due to a 13% decrease in fuel cost per gallon[114] - Non-fuel expenses increased by 14% in Q1 2025, attributed to higher operations from increased passengers and capacity[107] - Salaries, wages, and benefits expense rose by $16 million, or 7%, to $249 million, attributed to higher crew costs and employee benefits[115] - Station operations expense surged by $43 million, or 31%, to $180 million, due to increased airport operations from a 12% rise in passengers[117] - Total lease costs for Q1 2025 amounted to $285 million, an increase of 26% from $226 million in Q1 2024, driven by higher operating lease costs of $181 million compared to $147 million in the prior year[51] Aircraft and Fleet Management - The company leased 163 aircraft as of March 31, 2025, with remaining lease terms ranging from 1 month to 12 years[45] - As of March 31, 2025, the company had commitments to purchase 27 A320neo and 156 A321neo aircraft, with total purchase commitments estimated at $11.3 billion through 2031[63] - The company had a firm obligation to purchase 183 A320neo family aircraft and 9 additional spare engines to be delivered by 2031[141] - The company recognized gains on sale-leaseback transactions of $56 million during the three months ended March 31, 2025, compared to $71 million in the same period of 2024[46] Regulatory and Compliance - The company is currently subject to a preliminary assessment of $149 million related to federal excise tax, which it intends to contest, highlighting potential regulatory challenges[65] - The company had accrued $6 million for healthcare claims incurred but not yet paid as of March 31, 2025, consistent with the previous quarter[73] - There were no material changes in critical accounting policies and estimates during the three months ended March 31, 2025[152] Employee Relations - The company has seven union-represented employee groups, representing approximately 87% of the workforce, with ongoing negotiations for collective bargaining agreements[69] - The company recognized $5 million in stock-based compensation expense in Q1 2025, up from $4 million in Q1 2024, reflecting increased employee incentives[53]

[Highlights and CEO Commentary](index=1&type=section&id=Highlights) Frontier reported record first-quarter operating revenues of $912 million, a 5% increase YoY, with a net loss of $43 million due to softer March demand - CEO Barry Biffle stated that softer travel demand in March impacted results, but booking trends for May and early summer have stabilized. The company is targeting a return to profitability in the second half of 2025, leveraging commercial investments, capacity optimization, and cost management[3](index=3&type=chunk) Q1 2025 Key Financial Metrics | Metric | Q1 2025 Result | YoY Change | | :--- | :--- | :--- | | Total Operating Revenues | $912 million | +5% | | Revenue per ASM (RASM) | 9.17 cents | Roughly flat | | Cost per ASM (CASM) | 9.63 cents | +1% | | Net Loss | $43 million | Increased from $26 million loss | | Diluted Loss Per Share | $(0.19) | Increased from $(0.12) loss | - Operational and strategic highlights for the quarter include: - Ended the quarter with **$889 million in total liquidity** - Took delivery of **four A321neo aircraft** - **82% of the fleet** is now composed of fuel-efficient A320neo family aircraft - Launched **17 new routes** and announced **22 more for the spring**[4](index=4&type=chunk) [Q1 2025 Financial Performance](index=2&type=section&id=First%20Quarter%202025%20Financial%20Performance) In Q1 2025, Frontier achieved record revenue of $912 million, up 5% YoY, offset by a 7% rise in operating expenses to $958 million, leading to a $43 million net loss Q1 2025 GAAP Financial Summary | Financial Metric | Q1 2025 (GAAP) | Q1 2024 (GAAP) | | :--- | :--- | :--- | | Total operating revenues | $912 million | $865 million | | Total operating expenses | $958 million | $896 million | | Pre-tax loss | $(40) million | $(24) million | | Net loss | $(43) million | $(26) million | | Earnings per share, diluted | $(0.19) | $(0.12) | [Revenue Performance](index=2&type=section&id=Revenue%20Performance) Record first-quarter revenue of $912 million increased 5% YoY, driven by capacity growth, but tempered by softer March demand and industry-wide fare discounting - Total operating revenue reached a record **$912 million** for a first quarter, **5% higher** than Q1 2024, on **5% capacity growth**, though tempered by softer demand in March[6](index=6&type=chunk) Comparative Revenue Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | RASM | 9.17 cents | 9.16 cents | ~ Flat | | Enplanements | 7.8M | 7.0M | +12% | | Total Revenue per Passenger | $116.33 | $123.53 | -6% | | Load Factor | 74.9% | 72.7% | +2.2 pts | [Cost Performance](index=2&type=section&id=Cost%20Performance) Total operating expenses for Q1 2025 were $958 million, with CASM rising 1% to 9.63 cents and CASM excluding fuel increasing 8% to 7.24 cents - Total operating expenses were **$958 million**, with fuel expenses at **$238 million** (average cost of **$2.55/gallon**) and non-fuel operating expenses at **$720 million**[9](index=9&type=chunk) Comparative Cost Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | CASM | 9.63 cents | 9.49 cents | +1% | | CASM (excluding fuel) | 7.24 cents | 6.71 cents | +8% | | Average daily aircraft utilization | 9.7 hours | 10.6 hours | -8% | [Earnings](index=2&type=section&id=Earnings) The company reported a pre-tax loss of $40 million (4.4% margin) and a net loss of $43 million, resulting in a loss per share of $0.19 Earnings Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Pre-tax loss | $40 million | $24 million | | Pre-tax loss margin | 4.4% | 2.8% | | Net loss | $43 million | $26 million | | Loss per share | $(0.19) | $(0.12) | [Operational and Balance Sheet Overview](index=3&type=section&id=Operational%20and%20Balance%20Sheet%20Overview) As of March 31, 2025, Frontier maintained $889 million in liquidity, with a fleet of 163 Airbus aircraft, 82% of which are fuel-efficient A320neo family models [Liquidity](index=3&type=section&id=Liquidity) At the end of Q1 2025, Frontier's total liquidity stood at $889 million, comprising $684 million in cash and $205 million from an undrawn revolving credit facility - Total liquidity as of March 31, 2025, was **$889 million**, consisting of **$684 million in cash** and **$205 million in undrawn revolving credit**[13](index=13&type=chunk) [Fleet](index=3&type=section&id=Fleet) Frontier's fleet comprises 163 Airbus aircraft, with 82% being fuel-efficient A320neo family models, and 183 additional aircraft committed through 2031 Fleet Composition | Equipment | Quantity | | :--- | :--- | | A320neo | 82 | | A320ceo | 8 | | A321ceo | 21 | | A321neo | 52 | | **Total fleet** | **163** | - The company has commitments for an additional **183 aircraft** (27 A320neo, 156 A321neo) to be delivered through 2031[15](index=15&type=chunk) - Frontier achieved a record **107 available seat miles (ASMs) per gallon**, a **1% improvement YoY**, reinforcing its position as "America's Greenest Airline"[17](index=17&type=chunk) [Forward Guidance](index=3&type=section&id=Forward%20Guidance) Frontier projects an adjusted loss per share between $(0.23) and $(0.37) for Q2 2025, will not issue full-year EPS guidance, and plans to reduce capacity for the remainder of 2025 Q2 2025 Guidance | Guidance Metric | Q2 2025 Estimate | | :--- | :--- | | Adjusted (non-GAAP) loss per share | $(0.23) to $(0.37) | - The company has reduced planned capacity for Q2 and the remainder of 2025 to be down **low single digits YoY**, with a focus on adjusting off-peak day schedules[20](index=20&type=chunk) - Full-year 2025 adjusted EPS guidance will not be provided due to uncertainty in the demand outlook for the rest of the year[21](index=21&type=chunk) [Appendix: Financial Statements and Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This section provides detailed unaudited financial tables for Q1 2025, including statements of operations, operating statistics, and non-GAAP reconciliations [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q1 2025 income statement shows total operating revenues of $912 million and expenses of $958 million, resulting in a $46 million operating loss and a $43 million net loss Condensed Consolidated Statements of Operations (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total operating revenues | $912 | $865 | | Total operating expenses | $958 | $896 | | Operating income (loss) | $(46) | $(31) | | Net income (loss) | $(43) | $(26) | [Comparative Operating Statistics](index=7&type=section&id=Comparative%20Operating%20Statistics) Key Q1 2025 operating statistics show a 5% increase in ASMs to 9,949 million and a 12% increase in passengers to 7.8 million, despite an 8% decrease in aircraft utilization Comparative Operating Statistics | Operating Metric | Q1 2025 | Q1 2024 | Percent Change | | :--- | :--- | :--- | :--- | | ASMs (millions) | 9,949 | 9,446 | 5% | | Passengers (thousands) | 7,839 | 7,005 | 12% | | Load Factor | 74.9% | 72.7% | 2.2 pts | | Average daily aircraft utilization (hours) | 9.7 | 10.6 | (8)% | | Total revenue per passenger ($) | 116.33 | 123.53 | (6)% | | CASM (¢) | 9.63 | 9.49 | 1% | | CASM (excluding fuel) (¢) | 7.24 | 6.71 | 8% | | Fuel cost per gallon ($) | 2.55 | 2.93 | (13)% | [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section reconciles non-GAAP metrics to GAAP, showing adjusted net loss matching reported GAAP figures and adjusted EBITDAR at $135 million for Q1 2025 Non-GAAP Reconciliation (in millions) | Reconciliation (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss, as reported | $(43) | $(26) | | Adjusted net loss | $(43) | $(21) | | EBITDAR | $135 | $144 | | Adjusted EBITDAR | $135 | $144 | Non-GAAP Reconciliation (per ASM, ¢) | Reconciliation (per ASM, ¢) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | CASM | 9.63 | 9.49 | | CASM (excluding fuel) | 7.24 | 6.71 |

Core Insights - Fareportal has successfully integrated New Distribution Capability (NDC) with Frontier Airlines, enhancing the travel booking experience for customers [1][3] - Customers booking travel on Frontier through CheapOair or OneTravel can now select seats, purchase bags, and access the best available fares, along with self-service tools for managing travel plans [2][3] Fareportal Overview - Fareportal operates online travel agency brands CheapOair and OneTravel, connecting travelers to over 500 airlines, a million lodging options, and hundreds of car rental providers globally [4] - The company focuses on providing a seamless booking experience through various platforms, including mobile apps and live chat [4] Frontier Airlines Overview - Frontier Airlines is recognized as a leading ultra-low-cost carrier, offering a wide range of domestic and international destinations [3][5] - The airline has introduced new product offerings, including UpFront PlusSM seating and plans to offer First Class seating starting in late 2025 [3] - Frontier Airlines has the largest and youngest A320neo family fleet in the U.S. and was awarded North American Environmental Sustainability Airline of the Year in 2024 [5]

Core Viewpoint - Frontier Group Holdings, Inc. is set to release its first quarter 2025 financial results on May 1, 2025, after market close, as previously announced [1] Financial Results Announcement - Management will host a live webcast on the same day at 4:30pm EDT to discuss the financial results, which will be available to the public on a listen-only basis [2] - An archive of the call will be accessible on the company's website for 30 days following the event [2] Company Overview - Frontier Airlines, a subsidiary of Frontier Group Holdings, is focused on providing low fares and operates 159 A320 family aircraft, boasting the largest A320neo family fleet in the U.S. [3] - The airline's operational efficiency is highlighted by its status as the most fuel-efficient major U.S. carrier, measured by available seat miles (ASMs) per fuel gallon consumed [3] - Frontier has 187 new Airbus planes on order, indicating ongoing growth to fulfill its mission of affordable travel across America [3]

Financial Performance - The company reported a consolidated net loss of CAD 640,095 (CAD 0.02 loss per share) for Q4 2024, compared to a net income of CAD 693,390 (CAD 0.05 per share) for the same period in 2023 [2] - For the year ended December 31, 2024, the consolidated net loss was CAD 2,086,730 (CAD 0.07 loss per share), contrasting with a net income of CAD 193,340 (CAD 0.01 per share) at the end of 2023 [2] - The net loss from operations for 2024 was CAD 333,735 [2] Company Overview - International Frontier Resources Corporation (IFR) is a Canadian publicly traded company focused on advancing oil and gas projects, particularly through its Mexican subsidiary, Petro Frontera S.A.P.I de CV [3] - The company is involved in the development of petroleum and natural gas assets in Mexico, as well as having projects in Canada and the United States, including the Northwest Territories and Montana [3] Stock Information - The company's shares are listed on the TSX Venture under the symbol IFR [4]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.On the 10 th of April, Frontier Group ( ULCC ) issued a guidance update for the first quarter of 2025 incorporating the impact of reduced consumer confidence and pulled its full year guidance as a result.Dhierin runs the investing group The Aerospa ...

Group 1 - Frontier Airlines has joined Delta Air Lines in withdrawing its full-year outlook and reducing flight capacity due to a decline in demand and an "uncertain environment" [1] - The budget airline has also revised its first-quarter outlook, projecting a revenue growth of approximately 5% with capacity also increasing by 5% compared to the previous year [1] Group 2 - Revenue growth is expected to be lower than anticipated due to weakened demand observed in March, leading to fare discounting and promotions across the airline industry [2] - A decline in consumer confidence in March has been cited as a contributing factor to the reduced demand [2]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

Industry Overview - The Zacks Transportation - Airline industry is benefiting from declining fuel costs, which are a significant input cost for airlines [1][4] - Airlines are cutting capacity to address the tariff-induced decline in air travel demand, which is a shareholder-friendly approach [1][6] - The industry includes both legacy carriers and low-cost airlines, with operations supported by regional subsidiaries and third-party carriers [3] Financial Performance - The Zacks Airline industry has gained 23.7% over the past year, outperforming the S&P 500's rise of 7.7% and the broader sector's decline of 12.1% [12] - The industry's earnings estimate for 2025 has improved by 5% since September 2024, indicating positive earnings growth potential [10] Valuation Metrics - The industry has a forward 12-month price-to-sales (P/S) ratio of 1.16X, significantly lower than the S&P 500's 4.81X and the sector's 1.68X [15] Key Players - SkyWest (SKYW) has seen its stock surge 28% in the past year, with a 7.6% increase in the Zacks Consensus Estimate for 2025 earnings over the past 60 days [20] - Frontier Group (ULCC) has experienced a 42.2% increase in the Zacks Consensus Estimate for 2025 earnings, and is offering free checked bags for summer travel [23][24] - Allegiant (ALGT) has a Zacks Rank 2 (Buy) and has revised its current-year earnings estimate upward by 21.8% over the past 60 days [26]