By Denny Jacob
Frontier Group Holdings is scheduled to report its fourth-quarter results Friday before the market opens, a little over a week since it made another run at a deal for Spirit Airlines, which was rebuffed. Here is what you need to know.
REVENUE: The parent company of Frontier Airlines is expected to post $984.3 million in revenue for the quarter, compared with $891 million in the prior-year period, according to FactSet.
NET INCOME: The Denver company is expected to report $28.9 million in net income, compared with a loss of $37 million, according to FactSet.
ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at 13 cents a share.
The stock price surged 33% during the quarter and recently traded around $8.02.
WHAT TO WATCH
--Consumers are still flying at a healthy clip. The question is whether they are choosing Frontier. Delta Air Lines in January exceeded Wall Street's estimates for its fourth quarter and said it expects travel demand to remain strong. Southwest Airlines' results in January mirrored a similar sentiment. Frontier's results will help determine whether consumers are still looking for the best deal or have adjusted to higher prices and are willing to pay more for convenience and other perks.
--If at first you don't succeed, try again. That is the playbook for Frontier, which is making another run at a deal for Spirit Airlines. Though Spirit has turned it down, look for the latest commentary on why a deal between the two budget airlines should come to fruition. One likely reason could be a favorable regulatory environment given President Trump's pro-business agenda.
--A deal between Frontier and Spirit would create a combined budget airline with enough heft to compete against the bigger airlines that dominate the industry. TD Cowen's Tom Fitzgerald and Helane Becker previously noted that a combination would erase the dynamic of both companies chasing the same cost-conscious flyer and put it in a stronger position to compete in the Southeast and Caribbean, a potential negative for American Airlines Group, Southwest and JetBlue Airways.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
February 06, 2025 14:54 ET (19:54 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.