Frontier Airlines revises Q4 guidance amid revenue growth

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Frontier Airlines revises Q4 guidance amid revenue growth

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By Sky Industry News

Jan 11, 2025

Frontier Airlines has announced an update to its fourth-quarter 2024 guidance, anticipating better-than-expected results ahead of the official release on February 7. The airline credits momentum in revenue and cost initiatives for the improved outlook, projecting a pre-tax margin of around 4%, up from previous expectations.

The carrier's revenue per available seat mile (RASM) is forecasted to grow by 14% year-on-year, driven by efforts under 'The New Frontier' program. This includes network optimization and yield management strategies. "The RASM uplift is further supported by the Company’s shift to network simplification," according to the airline.

In terms of operational performance, Frontier Airlines was ranked eighth in North America for on-time performance in 2024 with a completion rate of 98.34%. Delta Air Lines led the rankings despite challenges from an IT outage earlier in the year.

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Frontier introduced several changes under 'The New Frontier,' including scrapping change fees and introducing first-class seating. Despite these enhancements, the airline anticipates a quarterly capacity decrease of 2.1% year-on-year.

Adjusted operating expenses for Q4 2024 are expected to be between $725 million and $735 million, slightly lower than prior estimates. The company forecasts total liquidity at approximately $930 million by year's end.

Other airlines like American Airlines, JetBlue, and Southwest have also reported improving market conditions for Q4 2024. Alaska Air Group upgraded its earnings guidance as part of its 'Alaska Accelerate' plan following a merger with Hawaiian Airlines.