Frontier Group Holdings Reports $3.775 Billion Revenue and $85 Million Net Income for Fiscal Year 2024

Frontier Group Holdings, Inc. reported a total operating revenue of $3.775 billion for the fiscal year ending December 31, 2024, marking a 5% increase from $3.589 billion in the previous year. This growth was primarily driven by a 5% increase in available seat miles (ASMs), which rose to 39.871 billion from 37.822 billion. Despite this revenue growth, the company experienced a decline in revenue per passenger, which fell by 5% to $113.38, attributed to a decrease in load factor and average stage length. The airline's net income for the year was $85 million, a significant recovery from a net loss of $11 million in 2023.

Operating expenses also increased, totaling $3.717 billion, up from $3.592 billion in 2023, resulting in a cost per available seat mile (CASM) of 9.32 cents, a 2% decrease from the previous year. Notably, fuel expenses decreased by 8% to $1.041 billion, largely due to a 12% drop in fuel cost per gallon, despite a 5% increase in fuel gallons consumed. Non-fuel expenses rose by 9%, driven by a larger fleet and increased operational activity. The company reported a total of 33.296 million passengers flown, a 10% increase from the previous year.

Strategically, Frontier has focused on expanding its fleet and network, with a firm commitment to purchase 187 Airbus A320neo family aircraft by the end of 2031. As of December 31, 2024, the airline operated a fleet of 159 aircraft, with plans to enhance its operational efficiency through the introduction of larger, more fuel-efficient aircraft. The company also launched new products, including the BizFare program aimed at corporate travelers, and enhancements to its loyalty program, FRONTIER Miles.

Frontier's operational metrics indicate a disciplined approach to capacity management, with a focus on high-demand travel days. The average aircraft utilization decreased slightly to 10.3 hours per day, reflecting the airline's strategy to optimize its network. The company reported a total of 216,374 departures, a 15% increase from the previous year, and an average of 205 seats per departure, up from 199. As of the end of 2024, Frontier had $935 million in total available liquidity, consisting of $730 million in cash and cash equivalents and $205 million in undrawn capacity on its revolving loan facility.

Looking ahead, Frontier anticipates continued growth driven by its low-cost structure and expanding network. However, the airline remains vigilant regarding market conditions, including fuel price volatility and competitive pressures from both legacy carriers and other low-cost airlines. The company is committed to maintaining its operational integrity and customer service standards while navigating the challenges of the highly competitive airline industry.