Frontier (US:ULCC)2025-05-01 20:07Financial 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]