Frontier Airlines has reported an increase in operating revenues during the third quarter of the year, increasing by 6% to $935 million. The airline reported a net income of $26 million in comparison to a loss of $32 million in the comparable quarter of the previous year.
Frontier posted pre-tax income was $27 million for the third quarter of 2024, reflecting a pre-tax income margin of 2.9% for the quarter, with an adjusted (non-GAAP) pre-tax loss of $10 million reflecting margin of 1.1%, aligning with guidance expectations despite operational disruptions caused by Hurricane Helene.
Revenue per available seat mile (RASM) reached 9.28 cents in the third quarter, marking a 2% increase over the same period in 2023.
Total liquidity, as of September 30, 2024, was $781 million, consisting of unrestricted cash and cash equivalents of $576 million and $205 million of availability from a revolving credit facility that the company entered.
"Our revenue and network initiatives began to overcome oversupplied industry capacity as evidenced by RASM which inflected positive by mid-August," commented Barry Biffle, chief executive officer. “We expect maturity of our network and revenue initiatives and moderating industry capacity growth to set the stage to continue to grow RASM and, along with our industry leading cost performance, to drive a return to double-digit adjusted pre-tax margins by summer 2025.”
During the quarter the company entered into a revolving credit facility, which provides $205 million of commitments secured by the company's loyalty program and brand-related assets and may be increased to $500 million. Additionally, Frontier entered into new PDP financing facilities and amended its existing PDP facility, which increased the company's total PDP financing capacity to $478 million, in aggregate, relating to aircraft on order from Airbus that are currently scheduled for delivery through 2027 and certain deliveries scheduled in 2028.
Frontier took delivery of five A321neo aircraft during the third quarter, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 81 percent as of September 30, 2024, the highest of all major US carriers Frontier's average fleet age was approximately 4.5 years. The carrier has a total fleet made up of 153 Airbus single-aisle aircraft.