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Frontier Group Holdings, Inc. is the parent company of Frontier Airlines, Inc. ( Frontier or the Company ), an ultra low-cost carrier. We are headquartered in Denver, Colorado and offer flights throughout the United States and to select near international destinations in the Americas.
The business is unprofitable at the operating level (-4.00% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 1.4% YoY. Margins deteriorated 5.5pp alongside, both lines moving the wrong way.
ROIC dropped from 1.26% to -2.14%, capital efficiency is deteriorating. Negative free cash flow of -$600M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$3.80B
▼ -1.4% YoY
Net Income (TTM)
-$366M
▼ -261.2% YoY
Op. Margin
-10.15%
▼ -5.5pp YoY
ROIC
-5.48%
▼ -3.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$468M
▼ -279.7% YoY
Op. Cash Flow (TTM)
-$399M
▼ -540.2% YoY
Net Debt
$4.48B
Cash & Equiv.
$772M
5Y CAGR: +24.4%
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