Frontier Group Q2 revenue beats estimates on travel demand 

Overview

• U.S. low-cost airline's Q2 revenue rose 38% yr/yr, beating analyst expectations

• Adjusted Q2 loss per share and adjusted net loss both beat analyst expectations

• Company cites strong travel demand and commercial strategy for revenue growth

Outlook

• Frontier sees Q3 adjusted diluted EPS between $(0.10) and $0.10

• Company expects Q3 capacity growth of 17-18% versus prior-year qtr

• Frontier expects full-year pre-delivery deposit balance to decrease by $170-$210 mln

Result Drivers

• TRAVEL DEMAND - Co said record Q2 revenue was driven by strong travel demand and favorable competitive capacity

• REVENUE MANAGEMENT - Revenue management initiatives and commercial strategy contributed to higher RASM and revenue growth

• NETWORK EXPANSION - Expanded network across key leisure and business markets supported revenue growth

Company press release: ID:nPn1GBt7ra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy."

• Wall Street's median 12-month price target for Frontier Group Holdings Inc is $7.00, about 12.4% above its July 28 closing price of $6.23

Reuters Recommended Reads

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• July 28 - Singapore Airlines posts first quarterly loss since 2022

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)