ULCC Latest Report

Key Financial Data

1. Frontier Group's total operating revenue in 2024 was US$1.002 billion, up US$111 million from US$891 million in 2023, a 12.42% increase.

2. This growth may be attributed to the improvement in market demand, optimization of product mix, enhanced operational efficiency, and a better industry environment.

3. The market share of its own brand increased from 8.0% in 2023 to 8.7% in 2024, indicating the enhanced brand influence.

4. The overall aviation industry experienced a recovery in 2024, with a 17.7% YoY growth in passenger traffic, leading to a general improvement in industry revenue.

Peer Comparison

1. Industry-wide analysis: The aviation industry experienced a significant recovery in 2024, especially in the backdrop of post-pandemic demand recovery, with a general improvement in revenue levels. According to data from the China Civil Aviation Administration, passenger traffic reached 730 million in 2024, up 17.7% YoY. This indicates that the aviation industry is gradually recovering and has huge potential for future growth.

2. Peer evaluation analysis: Frontier Group's 12.42% revenue growth rate stands out among peers, especially in the low-cost airline market, showcasing strong competitiveness. Despite the overall industry revenue growth, net profit may not grow in tandem, indicating the existence of the "revenue without profit" phenomenon.

Conclusion

Frontier Group's total operating revenue achieved significant growth, reflecting the company's competitiveness and adaptability in the market. The increase in market demand, product optimization, and industry environment improvement all supported this growth. The company's own-brand market share also showed its brand value gradually increasing.

Opportunities

1. The company can further enhance its market share by optimizing its product mix and adding new services to attract more customers.

2. With the recovery of the aviation industry, Frontier Group can leverage the opportunity of overall industry growth to expand its business.

3. The stable economic measures of future macroeconomic policies may drive the growth of aviation demand, bringing potential revenue to the company.

Risks

1. Despite revenue growth, challenges such as "revenue without profit" may arise, requiring attention to cost control.

2. Fluctuations in the macroeconomic environment may affect future performance, necessitating close attention to external market changes.

3. Intensified competition within the industry may pose pressure on market share and profit margins.