Frontier Airlines Reports Strong Q4 Profits
Buoyed by strong revenue and cost performance, Frontier Airlines (F9) has reported profits of US$40m for Q4 2022.
Buoyed by strong revenue and cost performance, Frontier Airlines (F9) has reported profits of US$40m for Q4 2022.
DALLAS - Denver-based Ultra-Low-Cost Carrier (ULCC) Frontier Airlines (F9) has reported profits of US$40m for Q4 2022 with strong revenue and cost performance. This compares to the US$53m loss during the same quarter for 2021.
Total operating revenue was US$906m, up 38% from pre-pandemic (2019) levels. Cost performance for F9 was strong, maintaining a significant cost advantage over its competitors. Ancillary revenues stand at US$82 per passenger, up 5% from the same period in 2022. The airline also remains the most fuel-efficient among the major US carriers, generating 103 available start miles (SAM) per gallon. According to its press release, this also affirms F9's commitment to being "America's Greenest Airline."
F9 CEO and President Barry Biffle said, "Fourth quarter results were strong, underpinned by record ancillary revenue and meaningful improvements in CASM and utilization. Moving into 2023, we intend to bolster our competitive edge by driving further improvement in ancillary revenue per passenger and unit costs.
"Today, our total cost advantage over the industry average is wider than it was in 2019, and I expect it will widen further this year. With these contributing factors, I'm confident we're on track to return the airline to the pre-pandemic profit levels per plane on a run-rate basis in the second half of 2023."
During Q4, F9 took delivery of a pair of Airbus A320neo and three A321neos, growing its fleet to 120 A320-family airliners. Of this, 72% of the fleet comprises the more fuel-efficient "neo." Frontier has commitments for a further 231 A320 family deliveries through 2029.
Profits have also been boosted by expansion "in 16 domestic markets." This includes six new routes at Phoenix Sky Harbor International Airport (PHX) and the announcement of a new crew base at Dallas-Fort Worth (DFW). The base is expected to open in May 2023 with five new routes.
The airline expects capacity to increase by 17-19% for Q1 2023, while full year capacity is set to grow by 23-28% over 2022 levels.
Full-year losses have now narrowed to US$37m, compared to a US$102m loss in 2021.
https://airwaysmag.com/frontier-all-you-can-fly-pass-2/
Featured Image: Frontier Airlines (F9) Airbus A320-251N (N337FR) at Boston. Photo: Marty Basaria/Airways.
