Frontier Group reported a fall in total operating revenues by 3% to $883 million, for the third quarter of 2023, on capacity growth of 21%. The airline posted a net loss of $32 million for the quarter – a decline of 2.5%.
Total operating expenses for the third quarter of 2023 were $937 million, including $291 million of fuel expenses at an average cost of $3.08 per gallon. Total operating expenses (excluding fuel), a non-GAAP measure, were $646 million.
The airline took delivery of eight A321neo aircraft during the third quarter, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 77%. As of September 30, 2023, Frontier had a fleet of 134 Airbus single-aisle aircraft, all financed through operating leases that expire between 2023 and 2035. At the end of the quarter, Frontier had commitments for an additional 214 aircraft to be delivered through 2029, including purchase commitments for 67 A320neo aircraft and 147 A321neo aircraft, representing 69 percent of future committed deliveries.
“Elevated fuel prices, uneven demand recovery, and operational disruptions all impacted third quarter results," said Barry Biffle, President and CEO. "To strengthen our competitive position, we are focused on simplifying our operations, concentrating growth in underserved markets, delivering the lowest costs and enhancing our loyalty program offering.”
Frontier has liquidity of $640 million, further noting that it has access to “substantial liquidity, if desired, through its co-branded credit card program and related brand assets, based on similar debt financing by other airlines”.