Frontier reports net loss of $37 million for Q4 2023

Frontier Airlines has reported a net loss of $37 million for the fourth quarter of 2023, down from a net profit of $40 million in the fourth same period in 2022. The airline reported an adjusted net profit of $1 million, down from an adjusted net profit of $39 million in the fourth quarter of 2022. Total operating revenue and adjusted revenue for the period was $891 million in 2023, compared to (adjusted and unadjusted) $906 million in Q4 2022. Unadjusted diluted earnings per share remained stable at $0.17, down from $0.18 in 2022. Frontier CEO Barry Biffle said: ""Fourth quarter results significantly outperformed guidance on strong operational performance and cost execution, providing a solid foundation as we enter 2024."" A TD Cowen insight report said: ""Frontier did a good job in Q4 2023 holding the line on costs, and management is focused on maintaining good cost discipline."" Frontier also reported a net loss of $11 million for the full year of 2023, an improvement from the $37 million net loss in 2022. After adjustments, it reported a net income of $28 million, up from 2022's net loss of $17 million. The year's total operating revenue was $3.6bn, up from £3.3bn in 2022. Diluted earnings per share were at a loss for the full year at $0.05, up from a 0.17 loss per share in 2022. After adjustments, Frontier's diluted earnings per share stood at $0.12, improving from 2022's loss per share at $0.08. Biffle said that one of the company's largest challenges, along with other budget airlines, was ""the industry's oversupply of capacity in leisure markets, with Las Vegas and Orlando being two significant examples."" He added that both markets have gone through a ""rapid and disproportionate growth compared to 2019 when demand capacity were far more balanced."" TD Cowen's report did find that Frontier along with other budget airlines were seeing capacity discipline returning to the US domestic market. Biffle added: ""We intend to expand profitability in 2024 by executing on our network simplification plan, focusing growth on overpriced and underserved markets, further diversifying our revenue stream, enhancing customer engagement, and further lowering our unit costs."" In an earnings call, Biffle added that the company will focus on the higher fare visiting friends and relatives market after the overcapacity challenges presented in 2023. The market will see the average fare for these routes increase by 5% year-over-year. Biffle added: ""Not only are we chasing higher fare markets, the total revenue pool of industry revenue in our network this summer will be up over 50%, despite only growing capacity 12% to 15%"".