Frontier (US:ULCC)2025-12-15 21:05Financial Performance - Total revenue for Q3 2025 was $886 million, a decrease of 4% in capacity compared to Q3 2024, with revenue per available seat mile (RASM) at 9.14 cents, a 2% increase year-over-year[4][6] - Net loss for Q3 2025 was $77 million, or $(0.34) per share, compared to a net income of $26 million in Q3 2024[4][11] - Total operating revenues decreased by 5% to $886 million in Q3 2025 compared to $935 million in Q3 2024[30] - Passenger revenue declined by 6% to $854 million in Q3 2025 from $910 million in Q3 2024[30] - Reported net income for Q3 2025 was $(77) million, compared to $26 million in Q3 2024, reflecting a significant decline[37] - Adjusted net income for Q3 2025 was $(77) million, while adjusted net income for Q3 2024 was $(11) million, indicating worsening performance year-over-year[37] - EBITDA for Q3 2025 was $(53) million, down from $38 million in Q3 2024, showing a decline in operational profitability[39] - Adjusted earnings (loss) per share of $(0.34) for the three months ended September 30, 2025, compared to $(0.05) for the same period in 2024[48] Operating Expenses - Total operating expenses were $963 million, including $234 million in fuel expenses at an average cost of $2.54 per gallon; CASM was 9.95 cents, a 9% increase from the previous year[4][8][9] - Operating expenses increased by 5% to $963 million in Q3 2025, with aircraft fuel costs down by 10% to $234 million[30] - Total operating expenses for the three months ended September 30, 2025, were reported at $963 million, an increase from $916 million in the same period of 2024[50] - Adjusted total operating expenses (excluding fuel) for the three months ended September 30, 2025, were $729 million, compared to $693 million in 2024, reflecting a year-over-year increase of approximately 5.2%[50] - Total operating expenses (excluding fuel) for the nine months ended September 30, 2025, were $2,223 million, compared to $1,986 million in 2024, indicating a year-over-year increase of approximately 11.9%[50] Capacity and Fleet - Frontier inducted two A321neo aircraft, increasing the fleet to 84% fuel-efficient A320neo family aircraft, the highest percentage among major U.S. carriers[4][14] - The company generated 105 available seat miles (ASMs) per gallon in Q3 2025, a 2% increase from the same quarter in 2024, reinforcing its position as "America's Greenest Airline"[4][17] - Average daily aircraft utilization decreased by 15% to 8.7 hours in Q3 2025 compared to 10.2 hours in Q3 2024[33] Revenue and Routes - The company announced 42 new routes, expanding its service in major U.S. metros and introducing international destinations in Central America and the Caribbean[4][17] - Total ancillary revenue per passenger was $66.70, a slight decrease of 1% from $67.13 in Q3 2024[33] Guidance and Future Expectations - The guidance for Q4 2025 indicates adjusted diluted earnings per share between $0.04 and $0.20, with capacity growth expected to be roughly flat compared to Q4 2024[4][20] - Frontier expects to deliver seven A320neo aircraft and three A321neo aircraft in Q4 2025, financed through sale-leaseback transactions[4][16] Legal and Financial Adjustments - The company recorded a legal settlement of $40 million, impacting both net income and adjusted metrics[37] - The company recorded a $5 million non-cash valuation allowance against deferred tax assets during the nine months ended September 30, 2024[37] - Legal settlements impacted the earnings per share by $(0.17) for the three months ended September 30, 2024[48] Employee Metrics - The number of full-time equivalent employees decreased by 6% to 7,535 in Q3 2025 compared to 8,011 in Q3 2024[33]