Frontier Group Holdings, Inc. (ULCC) saw its stock surge 18.43% in the pre-market trading session on Friday, February 7, 2025. The ultra-low-cost airline operator's shares were buoyed by its impressive fourth-quarter 2024 earnings results, which significantly surpassed analyst expectations.
Frontier Group reported adjusted net income of $54 million for Q4 2024, significantly higher than the consensus analyst estimate of $28.5 million. The company's operating revenue for the quarter came in at $1.002 billion, beating the projected $984.1 million.
The airline's strong financial performance was driven by robust travel demand and effective revenue management strategies. Frontier Group's CEO Barry Biffle attributed the record fourth-quarter revenue to the company's revenue and network initiatives, setting the stage for significant year-over-year growth in revenue per available seat mile (RASM) in 2025.
Looking ahead, Frontier Group issued an upbeat outlook for 2025, forecasting adjusted earnings per share of at least $1.00, well above the analyst consensus estimate of $0.58. The company expects continued disciplined capacity allocation and travel demand patterns to contribute to revenue and RASM growth this year.