Frontier Group Holdings, Inc. · NASDAQ:ULCC
Frontier — JP Morgan Industrials Conference 2023
13 slides from Frontier's conference presentation, Mar 14, 2023
Slide 1: JP Morgan Industrials Conference
JP Morgan Industrials Conference BARRY BIFFLE, PRESIDENT & CEO MARCH 14, 2023
Slide 2: Disclaimer
Disclaimer This presentation (including the accompanying oral presentation) is being delivered on behalf of Frontier Group Holdings, Inc. ("Frontier") ("we", "our", "us", or the "Company"). Before you invest, you should read the documents that the Company has filed with the Securities and Exchange C
Slide 3: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Statements and Information (continued) Actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the potential future impacts of the COVID-19 pandemic, i
Slide 4: Frontier's Cost Advantage Widening >$70/Passenger
Frontier’s Cost Advantage Widening >$70/Passenger Pre-Pandemic Unit Cost 2022 Unit Cost Advantage Advantage Total Adjusted CASM, FY 2019 (cents)1 Stage length adjusted to 1,000 miles Total Adjusted CASM, FY 2022 (cents)1 Stage length adjusted to 1,000 miles $ 61 COST ADVANTAGE $ 71 16.23 per pax 12.
Slide 5: Favorable Revenue Setup
Favorable Revenue Setup ✓ Ancillary expected to go from $82/pax in Q4-22 to $85/pax in Q4-23 ✓ Advanced bookings at highest volume since pandemic • Strong bookings for Easter/Spring Break, consistent with recent peak travel periods • Bookings into the summer are above 2019 volume and revenue per pas
Slide 6: Constrained Industry Capacity Enhances Growth Opportunity
Constrained Industry Capacity Enhances Growth Opportunity 1.6T 21.0T Thousands Millions 1.4T 20.0T 1.2T 19.0T 1.0T Real US GDP Output Capacity (ASM) 0.8T 18.0T 22% below 0.6T historical COVID trajectory & 8% 17.0T 0.4T Supply below 2019 Contraction 16.0T 0.2T 0.0T 15.0T 2013 2014 2015 2016 2017 2018
Slide 7: Fleet Plan to Drive Further Cost Efficiency
Fleet Plan to Drive Further Cost Efficiency 223 seats 68% A321 Gauge 195 seats (seats / ac) 21% 114 % A321 A321 ASMs / gal 100% NEO 102 Fuel efficiency ASMs / gal (ASMs / gal) 272 261 72% 233 % NEO NEO 208 187 165 136 120 Expected aircraft at year-end, net of planned returns 2022 2023 2024 2025 2026
Slide 8: Building Blocks In Place To Support our Target of Pre-Tax Double-digit Margins by 2H-2023
Building Blocks In Place To Support our Target of Pre-Tax Double-digit Margins by 2H-2023 ✓ Global ancillary leader at $82 per pax, headed to $85 per pax ✓ Load factors expected to exceed pre-pandemic levels with new revenue management system and ✓ Cost advantage widening ✓ Network modularity enhanc
Slide 9: Q&A
Q&A 9
Slide 10: Appendix
APPENDIX 10
Slide 11: Terms and Definitions
Terms and Definitions Ancillary Revenue – sum of non-fare passenger revenue and other revenue Gauge (Seats/Aircraft) – Average seats per aircraft for entire fleet at end of period Global Ancillary Leader – Major U.S. and non-U.S. Ultra-Low-Cost-Carriers around the world to include Easyjet, Ryanair,
Slide 12: CASM to CASM (excluding fuel), Adjusted CASM and Total Adjusted CASM, Non-GAAP Reconciliation
CASM to CASM (excluding fuel), Adjusted CASM (excluding fuel), Adjusted CASM and Total Adjusted CASM, Non-GAAP Reconciliation The Company is providing below a reconciliation of GAAP financial information to the non-GAAP financial information provided. The non-GAAP financial information is included t
Slide 13: Footnotes to Accompany CASM Non-GAAP Reconciliation
Footnotes to Accompany CASM to CASM (excluding fuel), Adjusted CASM (excluding fuel), Adjusted CASM and Total Adjusted CASM, Non-GAAP Reconciliation 13
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