Frontier Group achieved a total operating revenues of $967 million, 6% higher as compared to 2022 quarter. The Group recently released its financial results for second quarter (Q2) of 2023 and issued guidance for the third quarter and full year 2023. The Group realized a pre-tax margin of 9.1% and ancillary revenue of $80 per passenger, $5 higher per passenger than the 2022 quarter
Ancillary revenue per passenger for the second quarter was $80, six percent higher than the 2022 quarter.
The Group recoded a total operating expense of $888 million, including $244 million of fuel expenses at an average cost of $2.69 per gallon. Adjusted (non-GAAP) total operating expenses (excluding fuel) were $644 million.
Frontier’s pre-tax income for the Q2, 2023 was $88 million, reflecting a margin of 9.1% while the net income for the second quarter of 2023 was $71 million. The Group closed the quarter with unrestricted cash and cash equivalents of $780 million.
As of June 30, 2023, Frontier had a fleet of 126 Airbus single-aisle aircraft all financed through operating leases that expire between 2023 and 2035.
The Group took delivery of three A321neo aircraft, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 75% as of June 30, 2023, the highest of all major US carriers.
Frontier launched 26 new routes during the quarter, including new routes from Atlanta, Baltimore, Chicago Midway, Cleveland, Detroit, Houston, Orlando, San Juan, St. Thomas and Tampa.
“Results this quarter reflect strong execution by Team Frontier. Our earnings before tax delivered our highest post-pandemic, pre-tax margin on 36% capacity growth and 35 additional aircraft compared to the 2019 quarter, and we delivered a five percent improvement in non-fuel adjusted unit costs over the prior year quarter," commented Barry Biffle, president and chief executive. "I'm proud of the strong work ethic of Team Frontier employees as we managed through the challenging conditions presented by June weather. We are focused on delivering Low Fares Done Right, including sustaining our cost advantage over the industry as we grow the airline.”