ULCC Q2 2025 Earnings

Call Details

• Call Title: Frontier Group Holdings, Inc. Q2 2025 Earnings Call
• Date: August 5, 2025 at 3:00 PM UTC
• Management Team:
  • Barry Biffle (Chief Executive Officer)
  • Jimmy Dempsey (President)
  • Robert Schroeder (Chief Commercial Officer)
  • Mark Mitchell (Chief Financial Officer)
  • David Erdman (Senior Director of Investor Relations)

Call Summary

Financial Performance

• Total revenue in the second quarter was $929 million, down 5% year over year on 2% lower capacity versus the prior year quarter.
• Reported RASM was 9.01 cents and stage-length adjusted RASM to 1,000 miles was 8.74 cents, which was slightly higher compared to the same period last year.
• Total revenue per passenger was $109, which was flat to the prior year quarter, on a 79% load factor that was up 1.2 percentage points year over year.
• Adjusted non-fuel operating expenses in the second quarter were $774 million, or 7.5 cents per available seat mile.
• Fuel expense totaled $230 million in the quarter, which was 20% lower than the 2024 quarter and was driven by a 17% decrease in average fuel cost.
• Second quarter pre-tax loss and net loss were both $70 million, resulting in a net loss per share of $0.31.
• Quarter-end liquidity was $766 million comprised of $561 million of unrestricted cash and cash equivalents and $205 million of availability from the undrawn revolver.

Guidance

• Third quarter adjusted loss is expected between $0.26 and $0.42 per share.
• Third quarter fuel is assumed at an expected average all-in cost of $2.51 per gallon based on the jet fuel curve as of August 1st, which is $0.15 higher than the second quarter.
• Third quarter capacity is expected to be down 4% to 5% year over year with an average stage of approximately 915 miles.
• The company expects stage-adjusted RASM to be up mid to high single digits year over year in the third quarter.
• Third quarter non-fuel costs are expected to include transition costs related to the timing of capacity reductions and higher expected maintenance-related costs.
• Tax expense for the third quarter is expected in the range of $2 million to $4 million due to anticipated recognition of a non-cash valuation allowance.