Page 1

FRONTIER LOW FARES DONE RIGHT Frontier Airlines Reports Financial Results for the Third Quarter of 2021 November 10 , 2021 DENVER , Nov. 10 , 2021 ( GLOBE NEWSWIRE ) Frontier Group Holdings , Inc. , parent company of Frontier Airlines , Inc. ( NASDAQ : ULCC ) , today reported its financial results for the third quarter of 2021 . Frontier was profitable in the third quarter on a GAAP basis , recognizing $ 23 million of net income . After adjusting for non - GAAP items , including $ 72 million of CARES Act credits and $ 1 million in early lease termination costs , Frontier recognized a net loss of $ 24 million . Frontier had 112 aircraft at the end of the quarter , 10 percent higher than the corresponding prior year period and 20 percent higher than the third quarter of 2019. Frontier's capacity , as measured by ASMs , modestly exceeded the levels achieved in the comparable pre - COVID quarter in 2019. Frontier opened three new stations during the third quarter of 2021 and operated an average of over 435 flights per day , which was eight percent higher than the comparable pre - COVID quarter in 2019. Frontier generated $ 106 of total revenue per passenger during the quarter , including $ 63 of ancillary revenue per passenger . Frontier's ancillary revenue per passenger during the third quarter was 12 percent higher than the comparable pre - COVID quarter in 2019 . While the quarter was impacted by the Delta variant and rising fuel prices , management remained financially disciplined and the Company ended the quarter in a strong financial position . " This quarter reflected another step in our path to recovery , with the business remaining resilient in managing the dynamic nature of the pandemic , " said Barry Biffle , Frontier's president and CEO . " Despite the impact of the Delta variant on bookings during the quarter , we increased our capacity , departures and level of ancillary revenue per passenger as compared to the comparable pre - COVID quarter . We continue to view the Delta variant as transient and remain focused on getting the airline back to full utilization in the second quarter of 2022 while being nimble to address any further impacts from the Delta or other COVID - 19 variants . " The following is a summary of select financial results for the third quarter of 2021 , including both GAAP and adjusted ( Non - GAAP ) metrics . Please see " Reconciliation of Non - GAAP Financial Information " on page 8 below . ( unaudited , in millions , except for percentage and per share amounts ) Total operating revenues Total operating expenses Net income ( loss ) Net income ( loss ) margin Diluted earnings ( loss ) per share Recent Company Highlights : $ $ $ As Reported ( GAAP ) 630 $ 587 $ 23 $ 3.7 % 0.10 $ 2021 $ Adjusted ( Non - GAAP ) 630 658 Three Months Ended September 30 , 2020 As Reported ( GAAP ) 245 $ 326 $ ( 51 ) $ ( 20.8 ) % ( 0.26 ) $ $ $ $ ( 24 ) ( 3.8 ) % ( 0.11 ) $ Adjusted ( Non - GAAP ) 245 422 ( 106 ) ( 43.3 ) % ( 0.53 ) $ As Reported ( GAAP ) 669 560 87 13.0 % 0.40 $ 2019 $ $ $ $ $ $ Adjusted ( Non - GAAP ) 669 581 72 10.8 % 0.36 • The Company recognized $ 23 million of net income on a GAAP basis during the quarter . • Frontier ended the third quarter of 2021 with $ 802 million of unrestricted cash and cash equivalents . The Company also has a $ 161 million current income tax receivable from its annual tax returns filed during the first quarter of 2021 . • Frontier's capacity during the quarter , as measured by ASMs , modestly exceeded the levels achieved in the comparable pre - COVID quarter in 2019 . • The Company generated $ 63 of ancillary revenue per passenger during the quarter . This was 12 percent higher than the ancillary revenue per passenger generated during the comparable pre - COVID quarter in 2019 . ● Frontier took delivery of five A320neo aircraft during the quarter . This brings the airline's total fleet count to 112 aircraft , which is 10 percent higher than the prior year . Frontier has no planned aircraft deliveries during the fourth quarter of 2021 . • Frontier's fleet continues to be the most fuel - efficient of all major U.S. carriers when measured by ASMS per fuel gallon consumed , generating almost 100 ASMS per gallon during the third quarter of 2021. The Company retired the last of the A319 aircraft from its fleet during the quarter , increasing the proportion of the more fuel efficient A320neo family aircraft to 65 percent of its total fleet . • Frontier continued its domestic and international network expansion during the third quarter , opening stations in St. Maarten , San Jose , Costa Rica , and Burbank , California , as well as expanding the Company's Las Vegas schedule to its highest number of departures ever . The expansion will continue through the balance of 2021 , with new stations being added in Antigua , Belize , and Costa Rica along with Frontier's largest ever schedule in Orlando . With this expansion , Orlando will be Frontier's largest station in terms of daily departures for the winter schedule . Cash and Liquidity : Frontier ended the third quarter of 2021 with $ 802 million of unrestricted cash and cash equivalents . The Company also has a $ 161 million current income tax receivable from its annual tax returns filed during the first quarter of 2021. The Company is focused on repaying the $ 150 million