Frontier Group Holdings, Inc. (NASDAQ:ULCC) Q4 2022 Results Conference Call February 8, 2023 4:30 PM ET

Company Participants

David Erdman - Senior Director of Investor Relations

Barry Biffle - President & Chief Executive Officer

Daniel Shurz - Senior Vice President, Commercial

Jimmy Dempsey - Executive Vice President & Chief Financial Officer

Conference Call Participants

Stephen Trent - Citi

Jamie Baker - JPMorgan

Helane Becker - Cowen

Michael Linenberg - Deutsche Bank

Duane Pfennigwerth - Evercore ISI

Brandon Oglenski - Barclays

Conor Cunningham - Melius Research

Christopher Stathoulopoulos - Susquehanna Investment Group

Savi Syth - Raymond James

Scott Group - Wolfe Research

Operator

Good day, and thank you for standing by. Welcome to the Frontier Group Holdings' Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is recorded.

I would now like to hand the conference over to your speaker today, David Erdman, Senior Director, Investor Relations. Please go ahead.

David Erdman

Thank you, and good afternoon, everyone. Welcome to our fourth quarter 2022 earnings call. Today's speakers will be Barry Biffle, President and CEO; Jimmy Dempsey, EVP and CFO; and Daniel Shurz, Senior Vice President, Commercial. Each will deliver brief prepared remarks, and then we'll get to your questions.

First though, let me cover the safe harbor provisions. During this call, we will be making forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially from those predicted in these forward-looking statements. Additional information concerning risk factors which could cause such differences are outlined in the announcement we published earlier, along with reports we filed with the SEC. We will also be discussing non-GAAP financial measures, which are reconciled to the nearest comparable GAAP measure in the appendix of the earnings announcement.

And so with that, I'm going to give the floor to Barry to begin his comments. Barry?

Barry Biffle

Thank you, David, and good afternoon, everyone. Frontier posted strong fourth quarter results, achieving an adjusted pretax margin of 5.7%, our third straight quarterly profit. Results were underpinned by a record ancillary revenue performance along with meaningful improvements in our unit cost and utilization. The strong result was hampered by major disruptions followed by winter storm early during the busy holiday travel period.

However, we were able to minimize the impact through the recoverability of our modular network and the dedication of team Frontier who worked tirelessly to ensure our passengers arrive safely at their destination. I'd like to extend my gratitude and recognize the team's efforts as they overcame treacherous weather conditions with extended shifts and managed customer disruptions to get them to their destination safely.