Frontier Airlines released its second-quarter 2023 financial results on Tuesday, revealing its highest post-pandemic earnings before tax in the wake of the COVID-19 pandemic.
Pre-tax income for the second quarter of 2023 reached $88 million, reflecting a margin of 9.1 percent, Frontier confirmed.
Meanwhile, total operating revenue for the three months ended June 30 was $967 million, reflecting a revenue per available seat mile (RASM) of 10.4 cents, on capacity growth of 23 percent as compared to the same quarter last year.
According to the ultra-low-cost carrier, ancillary revenue per passenger for the second quarter was $80, six percent higher than the same quarter in 2022. Frontier's net income for the second quarter of 2023 came in at $71 million.
"Results this quarter reflect strong execution by Team Frontier. Our earnings before tax delivered our highest post-pandemic, pre-tax margin on 36 percent 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," Frontier President and CEO Barry Biffle said in a statement.
Pre-tax income for the second quarter of 2023 reached $88 million, reflecting a margin of 9.1 percent. (Photo Credit: Frontier Airlines)
"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."
As of August, the carrier anticipates third-quarter capacity to grow by 21 to 23 percent over the comparable 2022 quarter and full-year capacity to grow 19 to 21 percent over the prior year.
Frontier's third quarter adjusted (non-GAAP) pre-tax margin (excluding special items) is expected to be 4 to 7 percent, and the full year 2023 adjusted pre-tax margin is expected to be 4 to 6 percent.
"These ranges reflect the impact of weather-related cancellations in the third quarter, slightly higher fuel cost per gallon than previous guidance, and a moderation in average fares caused primarily by a shift in demand to competing long-haul international destinations," the airline noted.
Frontier is the latest airline to recover as travel demand continues to soar.
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