Frontier Group HoldingsNASDAQ: ULCC

Prominent proxy advisory firm Institutional Shareholder Services on Friday recommended Frontier Communications shareholders abstain from voting on Verizon's $20 billion takeover bid and instead support the adjournment proposal.

DALLAS--(BUSINESS WIRE)--Frontier Communications Parent, Inc. (NASDAQ:FYBR): What's happening? Frontier Communications Parent, Inc. (NASDAQ: FYBR) (“Frontier”) today announced it will report its third-quarter 2024 financial results after the market closes on Tuesday, November 5, 2024. Pending Acquisition by Verizon As previously announced, on September 4, 2024, Verizon Communications Inc. (“Verizon”) and Frontier Communications Parent, Inc. entered into a definitive agreement for Verizon to acq.

Frontier Group Holdings, Inc. (NASDAQ:ULCC ) Q3 2024 Earnings Conference Call October 29, 2024 11:30 AM ET Company Participants David Erdman – Senior Director of Investor Relations Barry Biffle – Chief Executive Officer Jimmy Dempsey – President Mark Mitchell – Chief Financial Officer Bobby Schroeter – Chief Commercial Officer Conference Call Participants Ravi Shanker – Morgan Stanley John Dorsett – Barclays Savi Syth – Raymond James Shannon Doherty – Deutsche Bank Andrew Didora – Bank of America Scott Group – Wolfe Jamie Baker – JP Morgan Securities Steve Trent – Citi Duane Pfennigwerth – Evercore ISI Christopher Stathoulopoulos – SIG Conor Cunningham – Melius Research Tom Fitzgerald – TD Cowen Operator Good day, and thank you for standing by. Welcome to the 2024 Third Quarter Frontier Group Holdings Earnings Call.

The headline numbers for Frontier Group (ULCC) give insight into how the company performed in the quarter ended September 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

DENVER , Oct. 29, 2024 /PRNewswire/ -- Frontier Group Holdings, Inc. (Nasdaq: ULCC), parent company of Frontier Airlines, Inc., today reported financial results for the third quarter of 2024 and issued guidance for the fourth quarter and full year 2024. Highlights: Total operating revenues were $935 million, 6 percent higher than the comparable 2023 quarter, on a 4 percent increase in capacity Revenue per available seat mile ("RASM") was 9.28 cents, 2 percent higher than the comparable 2023 quarter RASM on a stage-length adjusted basis to 1,000 miles, a non-GAAP measure1, was 8.59 cents, 5 percent lower than the comparable 2023 quarter, while RASM on a stage-length adjusted basis to 1,000 miles inflected positive in the second half of the quarter compared to the corresponding 2023 period Cost per available seat mile ("CASM") was 9.10 cents, a reduction of 6 percent over the comparable 2023 quarter Adjusted CASM (excluding fuel), a non-GAAP measure, was 6.89 cents, on a 14 percent shorter average stage length; adjusted CASM (excluding fuel) on a stage-length adjusted basis to 1,000 miles, a non-GAAP measure2, was 4 percent lower than the comparable 2023 quarter Pre-tax income margin was 2.9 percent and adjusted (non-GAAP) pre-tax loss margin was 1.1 percent, within guidance, notwithstanding the impact of Hurricane Helene Closed a new revolving credit facility secured by the Company's loyalty and brand-related assets which enhanced liquidity by $205 million to a total of $781 million as of September 30, 2024 Expanded the Company's total PDP financing capacity by $113 million to $478 million, in the aggregate, relating to aircraft on order from Airbus that are currently scheduled for delivery through 2027 and certain deliveries scheduled in 2028 Took delivery of five A321neo aircraft during the third quarter, increasing the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 81 percent as of September 30, 2024, the highest of all major U.S. carriers Frontier's average fleet age was approximately 4.5 years as of September 30, 2024, making it the youngest among all U.S.-based carriers Generated 103 available seat miles ("ASMs") per gallon, reaffirming Frontier's position as "America's Greenest Airline" as measured by fuel efficiency (ASMs per fuel gallon consumed during the third quarter, compared to all other major U.S. carriers) Announced 33 new routes as part of the expanded winter schedule, including the return of Washington Dulles, Palm Springs, CA and Burlington, VT, and the addition of a new station in Vail/Eagle County, CO "Our revenue and network initiatives began to overcome oversupplied industry capacity as evidenced by RASM which inflected positive by mid-August," commented Barry Biffle, Chief Executive Officer.

Frontier Communications urged shareholders on Friday to vote for a $20 billion takeover bid from Verizon , saying that it had reviewed interest from other potential buyers and found the telecom giant's proposal as the most favorable option.

Spirit Airlines (SAVE) shares are surging nearly 20% in premarket trading Wednesday on a report that Frontier Airlines parent Frontier Group Holdings (ULCC) is in the early stages of a renewed bid for its rival discount carrier.

Will Vote Against Verizon Transaction at Current Price as it Significantly Undervalues Frontier's Assets and Earnings Trajectory Frontier's Board Relied on Fundamentally Flawed DCF and Peer Analysis Believes Frontier's Enterprise Value is at Least $26 Billion, 30% Higher than the Current $20 Billion Enterprise Value Ascribed from the Verizon Transaction Urges Extension of Record Date and Date of Special Meeting of Stockholders LOS ANGELES , Oct. 23, 2024 /PRNewswire/ -- Glendon Capital Management LP ("Glendon"), a private investment firm which is one of the largest shareholders of Frontier Communications Parent, Inc. ("Frontier" or the "Company") (NASDAQ: FYBR), owning nearly 10% of the outstanding shares of the Company's common stock, today sent a letter to Frontier's Board of Directors (the "Board") regarding Glendon's decision to vote against the proposed acquisition of Frontier by Verizon Communications Inc. ("Verizon") at a price of $38.50 per share (the "Verizon Transaction"). In the letter, Glendon expressed its belief that Frontier's enterprise value is at least $26 billion today, 30% higher than the current $20 billion enterprise value ascribed from the Verizon Transaction, based on an analysis of the most recent and relevant comparable transactions as well as Frontier's expected future cash flows.

Three passengers filed a lawsuit against Frontier Airlines, alleging they suffered injuries when a flight caught on fire while landing at a Las Vegas airport.