Frontier Group Expects Q2 Capacity To Grow By 12%-14%, For FY24 Capacity Will Grow Between 12%-15%
Portfolio Pulse from Benzinga Newsdesk
Frontier Group anticipates a 12%-14% growth in Q2 capacity, targeting high-fare, underserved markets to boost RASM. FY24 capacity is projected to increase by 12%-15%. Adjusted fuel costs are expected to rise to $2.80-$2.90 per gallon. The adjusted pre-tax margin is forecasted at 3%-6%, factoring in higher fuel costs and network changes. Full-year guidance remains the same except for a $0.10 per gallon increase in fuel price predictions. Adjusted CASM is expected to decrease by 1%-3%, with capital expenditures planned between $180-$230 million.
May 02, 2024 | 11:45 am
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POSITIVE IMPACT
Frontier Group's Q2 capacity growth and strategic focus on high-fare markets are expected to positively impact ULCC's stock. The adjusted fuel cost increase and capital expenditure plans are critical factors for investors.
The projected growth in capacity and strategic market focus suggest positive revenue potential for Frontier Group, which could lead to an optimistic outlook for ULCC's stock. However, the increase in fuel costs and significant capital expenditures could temper gains, making it crucial for investors to weigh these factors.
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IMPORTANCE 85
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