Frontier (US:ULCC)2025-11-05 21:02Financial Performance - Total operating revenues for Q3 2025 were $886 million, a decrease of 5.2% compared to $935 million in Q3 2024[16] - Passenger revenue for Q3 2025 was $854 million, down 6.2% from $910 million in Q3 2024[16] - Operating expenses increased to $963 million in Q3 2025, up 5.1% from $916 million in Q3 2024[16] - Net loss for Q3 2025 was $77 million, compared to a net income of $26 million in Q3 2024[16] - Operating income for the nine months ended September 30, 2025, was a loss of $198 million, compared to a gain of $13 million for the same period in 2024[16] - Basic earnings per share for Q3 2025 was $(0.34), compared to $0.11 in Q3 2024[16] - The company reported a net loss of $190 million for the nine months ended September 30, 2025, compared to a net income of $31 million for the same period in 2024[117] - The company reported a loss before income taxes of $76 million for Q3 2025, compared to a profit of $27 million in Q3 2024[107] Cash and Liquidity - Cash and cash equivalents decreased to $566 million as of September 30, 2025, from $740 million at the end of 2024[12] - As of September 30, 2025, total available liquidity was $691 million, consisting of $561 million in unrestricted cash and cash equivalents[119] - The company reported a net cash used in operating activities of $434 million for the nine months ended September 30, 2025, compared to $169 million in the same period of 2024[169] - Net cash provided by financing activities was $418 million for the nine months ended September 30, 2025, compared to $182 million in 2024[169] Assets and Liabilities - Total assets increased to $6,701 million as of September 30, 2025, compared to $6,153 million at the end of 2024[12] - Total liabilities rose to $6,267 million as of September 30, 2025, up from $5,549 million at the end of 2024[12] - Total debt rose to $673 million as of September 30, 2025, compared to $507 million as of December 31, 2024, marking a 32.7% increase[41] - Long-term debt, net, increased to $305 million as of September 30, 2025, from $241 million as of December 31, 2024, reflecting a 26.6% increase[41] - The debt to capital ratio increased to 61% as of September 30, 2025, compared to 45% at the end of 2024[162] Revenue Breakdown - Operating revenues from domestic flights were $841 million for the three months ended September 30, 2025, compared to $890 million in 2024[37] - Passenger revenues totaled $854 million, down from $910 million year-over-year, with fare revenues at $330 million compared to $342 million in 2024[37] - Non-fare passenger revenues decreased to $524 million from $568 million, with service fees at $234 million and baggage fees at $178 million, both lower than the previous year[37] - Total operating revenues decreased by $49 million, or 5%, during the three months ended September 30, 2025, primarily due to a 4% lower capacity measured by ASMs[120] Operating Costs - Total operating expenses for Q3 2025 increased to $963 million, resulting in a cost per available seat mile (CASM) of 9.95¢, a 9% increase compared to Q3 2024[110] - Non-fuel expenses increased by 11% in Q3 2025 compared to the same period in 2024, driven by higher employee benefit costs and increased station costs[111] - Total operating expenses for the nine months ended September 30, 2025, increased to $2,925 million, resulting in a CASM of 9.77¢, a 6% increase compared to the prior year[113] - Aircraft rent expense for the nine months ended September 30, 2025, was $536 million, up from $483 million for the same period in 2024, representing an 11% increase[52] Capacity and Utilization - Available seat miles (ASMs) for Q3 2025 were 9,689 million, down from 10,075 million in Q3 2024, indicating a disciplined capacity deployment strategy[108] - The average daily aircraft utilization decreased by 15% to 8.7 hours in Q3 2025, down from 10.2 hours in Q3 2024[156] - The load factor increased by 2.7 percentage points to 80.7% for the three months ended September 30, 2025, compared to 78.0% in the prior year[120] Tax and Regulatory Matters - The effective tax rate for Q3 2025 was an expense of 1.3% on pre-tax losses, significantly lower than the 3.7% expense on pre-tax income in Q3 2024[86] - The effective tax rate for the nine months ended September 30, 2025, was 2.2%, down from 11.4% in 2024, influenced by an increase in valuation allowance for net operating losses[144] - The company is subject to a revised preliminary assessment of $133 million related to federal excise tax from the IRS[70] Employee and Labor Relations - As of September 30, 2025, approximately 86% of the company's employees were represented by unions, with various collective bargaining agreements in place[73] - The company is currently negotiating new labor contracts with unions representing its pilots and flight attendants[105] Future Commitments and Investments - As of September 30, 2025, the company had total purchase commitments for aircraft and engines amounting to $11.436 billion[68] - The company has a firm obligation to purchase 178 A320neo family aircraft and 31 additional spare engines to be delivered by 2031[166]