Sunday, June 1, 2025

Latest

Frontier Airlines Ends 2021 With US$2.06 Billion In Revenue, Announces US$6.6 Billion Merger With Spirit Airlines

Frontier Airlines, Inc. (Nasdaq: ULCC) released today its fourth quarter and full-year 2021 financial results. The company posted US$2.06 billion in annual revenue, an increase from 2020’s revenue of US$1.25 billion.

However, with operating expenses larger than the revenue, the firm ended the year with an operating loss of US$117 million. This compares to the operating loss of US$365 million last year.

This also led to notching an annual net loss of US$102 million compared to a net loss of US$225 million in the previous year. Calibrating for financial items, adjusted EBITDA for the year came in at a loss of US$364 million, an improvement from last year’s loss of US$466 million.

In 2021, the airline flew 20.7 million passengers with average revenue of US$99.49 per passenger. This compares to its 2020 numbers of 11.2 million passengers with US$111.23 revenue per passenger.

For Q4 2021, the company generated US$609 million in revenue, up from Q4 2020’s US$267 million. Still with operating expenses higher than its quarterly revenue, the firm ended with a net loss of US$53 million for the quarter. This compares to the previous year’s net loss of US$127 million. The quarterly loss translates to US$0.25 per share.

The Colorado-based airline also announced the definitive merger agreement with Spirit Airlines, Inc. (NYSE: SAVE), creating a low-cost airline with more than 350 aircraft in its fleet.

“We worked jointly with the Board of Directors and senior management team across both carriers to arrive at a combination of two complementary businesses that together will create America’s most competitive ultra-low fare airline for the benefit of consumers,” said Frontier Airlines’ chairman William Franke.

Based on its 2021 financials, the combined company has a potential annual revenue of up to US$5.3 billion, with annual run-rate operating synergies of US$500 million.

According to the terms of the agreement, Spirit Airlines shareholders will receive 1.9126 Frontier shares and US$2.13 in cash for each Spirit share. This values Spirit at roughly US$2.9 billion, and including the assumed debt and operating liabilities as part of the agreement, puts the transaction value at US$6.6 billion.

Upon closing, Frontier Airlines shareholders are expected to own 51.5% of the resulting company while Spirit Airlines shareholders will hold 48.5% equity. The merged firm will have seven seats on the board for Frontier and five seats for Spirit, with Franke assuming the chairmanship.

Frontier Airlines last traded at US$12.39 on the Nasdaq.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Spirit Airlines Shares Plunge on Bankruptcy Talk

Spirit Airlines (NYSE: SAVE) is in talks with creditors to improve its liquidity amid reports...

Wednesday, November 13, 2024, 12:01:00 PM

JetBlue Sweetens Spirit Airlines Bid With Additional US$2.00 Per Share: “Unambiguously A Superior Proposal”

It seems JetBlue (Nasdaq: JBLU) is seeing light to its counterbid to acquire Spirit Airlines,...

Tuesday, June 21, 2022, 02:58:00 PM

Airlines Halt Haiti Flights After Aircraft Hit by Gunfire

Airlines suspended flights to Haiti on Monday after gunfire struck two commercial aircraft, injuring a...

Tuesday, November 12, 2024, 02:49:00 PM

Spirit(ed) Away: Bankruptcy Speculation Shakes Spirit Airlines Stock

Spirit Airlines (NYSE: SAVE), a popular ultra-low-cost carrier, is reportedly exploring bankruptcy as an option...

Saturday, October 5, 2024, 07:56:00 AM

Spirit Delays Again Shareholder Vote For Frontier Merger To Continue Talks With JetBlue

The fight for flights is not yet over in the tumultuous bid to acquire Spirit...

Thursday, June 30, 2022, 11:15:00 AM