DALLAS — Denver-based ULCC Frontier Airlines (F9) reported US$848m in revenue during the first quarter of 2023, up from US$605m in 2022.
Frontier also reported a loss of US$13m in the first quarter of 2023, compared to a US$121m loss during the same period last year. Further, expenses in the first quarter were US$873m, a 15% increase over last year’s first-quarter costs of US$758m. Finally, the carrier’s load factor for the three months ending 31 March was 82.8%, compared with 74.2% last year.
F9’s Chief Financial Officer, James Dempsey, noted that the results reflect the seasonality of the business, with a strong spring break period offsetting the weak first half of the quarter.
In order to increase its focus on peak times for leisure travel and decrease underperforming flying during off-peak times, the airline is ready to adjust its network strategy.
To coincide with the busy summer air travel season in the northern hemisphere, F9 intends to introduce an updated peak-trough strategy, reshaping its capacity to take advantage of the second quarter after analyzing this new customer behavior.
The airline anticipates the changes to be fully implemented in the second half of 2023, according to F9’s Chief Executive Officer, Barry Biffle.
Frontier took delivery of six Airbus A321neos during the first quarter as part of an ongoing fleet renewal plan, ending the quarter with 125 single-aisle aircraft. The carrier has orders for an additional 225 Airbus aircraft, including purchase agreements for 67 A320neos and 151 A321neos, plus seven A321neos through direct leases, due to be delivered through 2029.
The airline says it was recently notified by Airbus that its remaining aircraft deliveries for 2023 have been delayed by one month, pushing two A321neos that had been previously expected this year into 2024.
As a result, F9 expects to take delivery of four A321neos in the second quarter, three of which are direct leases and awaits seven more of the type in the third quarter and another four A321neos during the final three months of 2023.
Feature Image: Frontier Airlines N705FR Airbus A321. Photo: Mateo Skinner/Airways