Frontier Airlines reported (13-May-2021) the following highlights from 1Q2021:
- Total operating revenues were USD271 million, a decrease of 50% year-on-year due to a "significant reduction" in demand for air travel;
- Capacity, as measured by ASMs, was lower by 36% and the company's RASM declined 22%. Although Frontier's deployed capacity has not yet returned to pre COVID historical levels, the company's departures in Mar-2021 were 7% higher than the departures in Mar-2019 as the recovery process strengthened for leisure travel;
- Total operating expenses were USD363 million, a decrease of 44% from the USD650 million incurred during 1Q2020. The decrease was driven by the 36% reduction in capacity and the benefit from the recognition of payroll support programme grants under the CARES Act. The company's adjusted total operating expenses of USD495 million were 16% lower than the prior year. Adjusted total operating expenses exclude, among other things, the impact of CARES Act credits and early lease termination costs. These amounts were partly offset by the fixed nature of aircraft rent on a larger fleet and the effect of vendor deferrals received during 2020 but recognised into expense when repaid in 2021. [more - original PR]