Frontier Group Holdings, Inc. has recently released its 10-K report for the fiscal year ended December 31, 2023. The company, founded in 1994 and headquartered in Denver, Colorado, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. As of December 31, 2023, Frontier had a fleet of 136 Airbus single-aisle aircraft.
In the 10-K report, Frontier reported total operating revenues of $3,775 million for the year ended December 31, 2024, representing a 5% increase from the previous year. This growth was primarily attributed to a 5% increase in capacity, as measured by available seat miles (ASMs). However, revenue per available seat mile (RASM) remained consistent for the year ended December 31, 2024, compared to the prior year period, as a 5% decline in revenue per passenger was offset by operational changes aimed at improving efficiency and recoverability.
Total operating expenses during the year ended December 31, 2024, increased to $3,717 million, resulting in a cost per available seat mile (CASM) of 9.32¢, a decrease of 2% compared to the year ended December 31, 2023. Fuel expense was $89 million lower, primarily driven by a 12% decrease in fuel cost per gallon, offset by a 5% increase in fuel gallons consumed due to a 5% capacity increase. Non-fuel expenses increased by 9% during the year ended December 31, 2024, driven primarily by higher capacity and a larger fleet size.
Frontier reported a net income of $85 million during the year ended December 31, 2024, compared to a net loss of $11 million for the year ended December 31, 2023. Adjusted net income, a non-GAAP measure, was $53 million for the year ended December 31, 2024, compared to $28 million for the year ended December 31, 2023.
As of December 31, 2024, Frontier's total available liquidity was $935 million, consisting of unrestricted cash and cash equivalents, including $205 million of funds available to be drawn under its revolving loan facility.
The report also highlighted various factors that may affect Frontier's future performance, including competition, aircraft fuel prices, volatility in the air transportation business, seasonality, and labor relations. Additionally, the company provided updates on recent developments, including financing transactions, legal settlements, and new customer programs.
Frontier's 10-K report offers a comprehensive overview of its financial and operational performance, as well as insights into the factors influencing its business and future outlook. The market has reacted to these announcements by moving the company's shares 4.3% to a price of $9.23. For the full picture, make sure to review Frontier's 10-K report.
