Frontier Group Holdings, Inc. (NASDAQ: ULCC), the parent company of Frontier Airlines, Inc., has reported its financial results for the fourth quarter and full year 2024. The company recorded a pre-tax margin and adjusted (non-GAAP) pre-tax margin of 5.1 percent for the fourth quarter, a significant increase from 0.7 percent and 0.8 percent respectively in the comparable 2023 quarter.
Total operating revenues for the fourth quarter of 2024 reached a record $1.0 billion, marking a 12 percent increase from the comparable 2023 quarter, despite a 2 percent decrease in capacity. The full-year 2024 revenue also set a record at $3.8 billion, representing a 5 percent increase from 2023.
The company's total operating expenses for the fourth quarter of 2024 were $957 million, including $229 million of fuel expenses at an average cost of $2.48 per gallon. This contributed to a CASM (cost per available seat mile) of 9.78 cents, compared to 8.93 cents in the corresponding 2023 quarter, and an adjusted CASM (excluding fuel) of 6.95 cents, up from 5.76 cents in the comparable 2023 quarter. For the full year 2024, CASM was 9.32 cents, and adjusted CASM (excluding fuel) was 6.44 cents, down 1.2 percent from the prior year.
Frontier achieved a pre-tax income of $51 million for the fourth quarter of 2024, significantly higher than the $6 million reported in the comparable 2023 quarter. The net income for the fourth quarter of 2024 was $54 million, a substantial improvement from a net loss of $37 million in the comparable 2023 quarter.
The company also bolstered its liquidity, ending the year with $935 million of total liquidity, representing approximately 25 percent of trailing twelve month revenue, compared to 17 percent at the end of 2023.
In terms of fleet, as of December 31, 2024, Frontier had a fleet of 159 Airbus single-aisle aircraft, with commitments for an additional 187 aircraft to be delivered through 2031.
The company's strong performance in the fourth quarter of 2024 has set it on a trajectory for significant year-over-year RASM (Revenue per Available Seat Mile) growth in 2025, underpinning its target of achieving double-digit adjusted pre-tax margins in the summer of 2025.
Barry Biffle, the Chief Executive Officer, expressed his pride in the team's contributions to these results and their commitment to providing an exceptional customer experience and the best overall value in air travel. As a result of these announcements, the company's shares have moved 15.4% on the market, and are now trading at a price of $9.34. If you want to know more, read the company's complete 8-K report here.
