Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40304 | |
Entity Registrant Name | Frontier Group Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-3681866 | |
Entity Address, Address Line One | 4545 Airport Way | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80239 | |
City Area Code | 720 | |
Local Phone Number | 374-4550 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | ULCC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 224,483,246 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001670076 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 658 | $ 609 |
Accounts receivable, net | 95 | 93 |
Supplies, net | 78 | 79 |
Other current assets | 116 | 90 |
Total current assets | 947 | 871 |
Property and equipment, net | 350 | 309 |
Operating lease right-of-use assets | 3,589 | 2,964 |
Pre-delivery deposits for flight equipment | 392 | 407 |
Aircraft maintenance deposits | 0 | 84 |
Intangible assets, net | 27 | 28 |
Other assets | 384 | 330 |
Total assets | 5,689 | 4,993 |
Liabilities and stockholders’ equity | ||
Accounts payable | 137 | 134 |
Air traffic liability | 323 | 253 |
Frequent flyer liability | 12 | 10 |
Current maturities of long-term debt, net | 263 | 251 |
Current maturities of operating leases | 601 | 549 |
Other current liabilities | 485 | 461 |
Total current liabilities | 1,821 | 1,658 |
Long-term debt, net | 189 | 219 |
Long-term operating leases | 3,016 | 2,440 |
Long-term frequent flyer liability | 33 | 35 |
Other long-term liabilities | 110 | 134 |
Total liabilities | 5,169 | 4,486 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value per share, with 224,471,666 and 222,998,790 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 0 | 0 |
Additional paid-in capital | 411 | 403 |
Retained earnings | 116 | 111 |
Accumulated other comprehensive income (loss) | (7) | (7) |
Total stockholders’ equity | 520 | 507 |
Total liabilities and stockholders’ equity | $ 5,689 | $ 4,993 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, stated par (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 224,471,666 | 222,998,790 |
Common stock outstanding (in shares) | 224,471,666 | 222,998,790 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating revenues: | ||||
Total operating revenues | $ 973 | $ 967 | $ 1,838 | $ 1,815 |
Operating expenses: | ||||
Aircraft fuel | 288 | 244 | 551 | 536 |
Salaries, wages and benefits | 244 | 211 | 477 | 414 |
Aircraft rent | 147 | 148 | 306 | 279 |
Station operations | 163 | 124 | 300 | 248 |
Maintenance, materials and repairs | 42 | 52 | 91 | 97 |
Sales and marketing | 47 | 44 | 87 | 84 |
Depreciation and amortization | 18 | 12 | 34 | 23 |
Other operating | (1) | 53 | (2) | 80 |
Total operating expenses | 948 | 888 | 1,844 | 1,761 |
Operating income (loss) | 25 | 79 | (6) | 54 |
Other income (expense): | ||||
Interest expense | (8) | (7) | (17) | (13) |
Capitalized interest | 7 | 6 | 16 | 12 |
Interest income and other | 8 | 10 | 15 | 18 |
Total other income (expense) | 7 | 9 | 14 | 17 |
Income (loss) before income taxes | 32 | 88 | 8 | 71 |
Income tax expense (benefit) | 1 | 17 | 3 | 13 |
Net income (loss) | $ 31 | $ 71 | $ 5 | $ 58 |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 0.14 | $ 0.32 | $ 0.02 | $ 0.26 |
Diluted (in dollars per share) | $ 0.14 | $ 0.31 | $ 0.02 | $ 0.26 |
Passenger | ||||
Operating revenues: | ||||
Total operating revenues | $ 950 | $ 945 | $ 1,795 | $ 1,775 |
Other | ||||
Operating revenues: | ||||
Total operating revenues | $ 23 | $ 22 | $ 43 | $ 40 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 31 | $ 71 | $ 5 | $ 58 |
Other comprehensive loss | ||||
Unrealized gains (losses) and amortization from cash flow hedges, net of adjustment for deferred tax benefit/(expense) of less than $(1) for each of the three and six months ended June 30, 2024 and $(1) and $1, for the three and six months ended June 30, 2023, respectively. (Note 4) | 0 | 3 | 0 | (4) |
Other comprehensive income (loss) | 0 | 3 | 0 | (4) |
Comprehensive income (loss) | $ 31 | $ 74 | $ 5 | $ 54 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized losses from cash flow hedges net of adjustment for de-designation of fuel hedges, tax benefit/(expense) | $ 1 | $ 1 | $ 1 | $ (1) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 5 | $ 58 |
Deferred income taxes | 3 | 13 |
Depreciation and amortization | 34 | 23 |
Gains recognized on sale-leaseback transactions | (148) | (57) |
Stock-based compensation | 9 | 7 |
Amortization of cash flow hedges, net of tax | 0 | 1 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (1) | 28 |
Supplies and other current assets | 1 | 9 |
Aircraft maintenance deposits | 82 | (9) |
Other long-term assets | (105) | (93) |
Accounts payable | 9 | 6 |
Air traffic liability | 70 | 40 |
Other liabilities | 28 | (60) |
Cash used in operating activities | (13) | (34) |
Cash flows from investing activities: | ||
Capital expenditures | (48) | (23) |
Pre-delivery deposits for flight equipment, net of refunds | 15 | (9) |
Other | (1) | (1) |
Cash used in investing activities | (34) | (33) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt, net of issuance costs | 142 | 52 |
Principal repayments on debt | (161) | (51) |
Proceeds from sale-leaseback transactions | 116 | 89 |
Proceeds from the exercise of stock options | 1 | 1 |
Tax withholdings on share-based awards | (2) | (5) |
Cash provided by financing activities | 96 | 86 |
Net increase in cash, cash equivalents and restricted cash | 49 | 19 |
Cash, cash equivalents and restricted cash, beginning of period | 609 | 761 |
Cash, cash equivalents and restricted cash, end of period | $ 658 | $ 780 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning balance (in shares) at Dec. 31, 2022 | 217,875,890 | ||||
Beginning balance at Dec. 31, 2022 | $ 509 | $ 0 | $ 393 | $ 122 | $ (6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (13) | (13) | |||
Shares issued in connection with vesting of restricted stock units (in shares) | 976,916 | ||||
Shares withheld to cover employee taxes on vested restricted stock units (in shares) | (402,814) | ||||
Shares withheld to cover employee taxes on vested restricted stock units | (5) | (5) | |||
Unrealized loss from cash flows hedges, net of tax | (7) | (7) | |||
Stock option exercises (in shares) | 53,862 | ||||
Stock-based compensation | 4 | 4 | |||
Ending balance (in shares) at Mar. 31, 2023 | 218,503,854 | ||||
Ending balance at Mar. 31, 2023 | 488 | $ 0 | 392 | 109 | (13) |
Beginning balance (in shares) at Dec. 31, 2022 | 217,875,890 | ||||
Beginning balance at Dec. 31, 2022 | 509 | $ 0 | 393 | 122 | (6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 58 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 220,677,393 | ||||
Ending balance at Jun. 30, 2023 | 566 | $ 0 | 396 | 180 | (10) |
Beginning balance (in shares) at Mar. 31, 2023 | 218,503,854 | ||||
Beginning balance at Mar. 31, 2023 | 488 | $ 0 | 392 | 109 | (13) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 71 | 71 | |||
Shares issued in connection with vesting of restricted stock units (in shares) | 185,358 | ||||
Shares withheld to cover employee taxes on vested restricted stock units (in shares) | (15,080) | ||||
Amortization of cash flow hedges, net of tax | 1 | 1 | |||
Unrealized loss from cash flows hedges, net of tax | 2 | 2 | |||
Stock option exercises (in shares) | 2,003,261 | ||||
Stock option exercises | 1 | 1 | |||
Stock-based compensation | 3 | 3 | |||
Ending balance (in shares) at Jun. 30, 2023 | 220,677,393 | ||||
Ending balance at Jun. 30, 2023 | $ 566 | $ 0 | 396 | 180 | (10) |
Beginning balance (in shares) at Dec. 31, 2023 | 222,998,790 | 222,998,790 | |||
Beginning balance at Dec. 31, 2023 | $ 507 | $ 0 | 403 | 111 | (7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (26) | (26) | |||
Shares issued in connection with vesting of restricted stock units (in shares) | 741,546 | ||||
Shares withheld to cover employee taxes on vested restricted stock units (in shares) | (252,094) | ||||
Shares withheld to cover employee taxes on vested restricted stock units | (2) | (2) | |||
Stock option exercises (in shares) | 398,062 | ||||
Stock option exercises | 1 | 1 | |||
Stock-based compensation | 4 | 4 | |||
Ending balance (in shares) at Mar. 31, 2024 | 223,886,304 | ||||
Ending balance at Mar. 31, 2024 | $ 484 | $ 0 | 406 | 85 | (7) |
Beginning balance (in shares) at Dec. 31, 2023 | 222,998,790 | 222,998,790 | |||
Beginning balance at Dec. 31, 2023 | $ 507 | $ 0 | 403 | 111 | (7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ 5 | ||||
Stock option exercises (in shares) | 758,217 | ||||
Ending balance (in shares) at Jun. 30, 2024 | 224,471,666 | 224,471,666 | |||
Ending balance at Jun. 30, 2024 | $ 520 | $ 0 | 411 | 116 | (7) |
Beginning balance (in shares) at Mar. 31, 2024 | 223,886,304 | ||||
Beginning balance at Mar. 31, 2024 | 484 | $ 0 | 406 | 85 | (7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 31 | 31 | |||
Shares issued in connection with vesting of restricted stock units (in shares) | 248,979 | ||||
Shares withheld to cover employee taxes on vested restricted stock units (in shares) | (23,772) | ||||
Stock option exercises (in shares) | 360,155 | ||||
Stock-based compensation | $ 5 | 5 | |||
Ending balance (in shares) at Jun. 30, 2024 | 224,471,666 | 224,471,666 | |||
Ending balance at Jun. 30, 2024 | $ 520 | $ 0 | $ 411 | $ 116 | $ (7) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States (“GAAP”) and include the accounts of Frontier Group Holdings, Inc. (“FGHI” or the “Company”) and its wholly-owned direct and indirect subsidiaries, including Frontier Airlines Holdings, Inc. (“FAH”) and Frontier Airlines, Inc. (“Frontier”). All wholly-owned subsidiaries are consolidated, with all intercompany transactions and balances being eliminated. The Company is an ultra low-cost, low-fare airline headquartered in Denver, Colorado that offers flights throughout the United States and to select international destinations in the Americas, serving approximately 100 airports. The Company is managed as a single business unit that provides air transportation for passengers. Management has concluded there is only one reportable segment. The accompanying condensed consolidated financial statements include the accounts of the Company and reflect all normal recurring adjustments which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company for the respective periods presented. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 20, 2024 (the “2023 Annual Report”). The interim results reflected in the unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for other interim periods or for the full year. The air transportation business is subject to significant seasonal fluctuations and is volatile and highly affected by economic cycles and trends. Reclassifications A reclassification of previously reported amounts has been made to conform to the current year’s presentation in the Company’s condensed consolidated statements of operations. The reclassification relates to the removal of transaction and merger-related costs and the reclassification of these costs into other operating expenses. This reclassification did not impact previously reported amounts on the Company’s condensed consolidated balance sheets, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of cash flows or condensed consolidated statements of stockholders’ equity. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition As of June 30, 2024 and December 31, 2023, the Company’s air traffic liability balance was $325 million and $259 million, respectively, which includes amounts classified within other long-term liabilities on the Company’s condensed consolidated balance sheets. During the six months ended June 30, 2024, 89% of the air traffic liability as of December 31, 2023 was recognized as passenger revenue within the Company’s condensed consolidated statements of operations. Of the air traffic liability balances as of June 30, 2024 and December 31, 2023, $47 million and $60 million, respectively, was related to unearned membership fees. During the three and six months ended June 30, 2024 and 2023, the Company recognized $10 million, $18 million, $10 million and $20 million, respectively, of revenue related to expected and actual expiration of customer rights to book future travel in passenger revenues within the Company’s condensed consolidated statements of operations. Operating revenues are comprised of passenger revenues, which includes fare and non-fare passenger revenues, and other revenues. Disaggregated operating revenues are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Passenger revenues: Fare $ 355 $ 361 $ 679 $ 664 Non-fare passenger revenues: Service fees 266 245 482 462 Baggage 233 232 437 453 Seat selection 67 74 131 146 Other 29 33 66 50 Total non-fare passenger revenue 595 584 1,116 1,111 Total passenger revenues 950 945 1,795 1,775 Other revenues 23 22 43 40 Total operating revenues $ 973 $ 967 $ 1,838 $ 1,815 The Company is managed as a single business unit that provides air transportation for passengers. Operating revenues by principal geographic region, as defined by the U.S. Department of Transportation (the “DOT”), are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Domestic $ 904 $ 877 $ 1,706 $ 1,658 Latin America 69 90 132 157 Total operating revenues $ 973 $ 967 $ 1,838 $ 1,815 The Company attributes operating revenues by geographic region based upon the origin and destination of each passenger flight segment. The Company’s tangible assets consist primarily of flight equipment, which are mobile across geographic markets. Accordingly, assets are not allocated to specific geographic regions. Frequent Flyer Program The Company’s FRONTIER Miles program provides frequent flyer travel awards to program members based on accumulated miles. Miles are generally accumulated as a result of travel, purchases using the co-branded credit card and purchases from other participating partners. The Company defers revenue for miles earned by passengers under its FRONTIER Miles program based on the equivalent ticket value a passenger receives by redeeming miles for a ticket rather than paying cash. The Company has a credit card affinity agreement with its credit card partner, Barclays Bank Delaware (“Barclays”), through 2029, which provides for joint marketing, grants certain benefits to co-branded credit cardholders (“Cardholders”) and allows Barclays to market using the Company’s customer database. Cardholders earn miles under the FRONTIER Miles program and the Company sells miles at agreed-upon rates to Barclays and earns fees from Barclays for the acquisition, retention and use of the co-branded credit card by consumers. |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following (in millions): June 30, 2024 December 31, 2023 Supplier incentives $ 72 $ 50 Prepaid expenses 18 21 Forgivable loans 17 13 Income tax and other taxes receivable 4 3 Other 5 3 Total other current assets $ 116 $ 90 |
Financial Derivative Instrument
Financial Derivative Instruments and Risk Management | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments and Risk Management | Financial Derivative Instruments and Risk Management The Company may be exposed to interest rate risk through aircraft and spare engine lease contracts for the time period between agreement of terms and commencement of the lease, when portions of rental payments can be adjusted and become fixed based on the swap rate. As part of its risk management program, from time to time the Company enters into contracts in order to limit the exposure to fluctuations in interest rates. During each of the three and six months ended June 30, 2024 and 2023, the Company did not enter into any swaps and, therefore, paid no upfront premiums for options. As of June 30, 2024, the Company had no interest rate hedges outstanding. Assets associated with the Company’s derivative instruments are presented on a gross basis and include upfront premiums paid. These assets are recorded as a component of other current assets on the Company’s condensed consolidated balance sheets. There were no assets outstanding as of June 30, 2024 and December 31, 2023, respectively. The following table summarizes the effect of interest rate derivative instruments reflected in rent expense within the Company’s condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Derivatives designated as cash flow hedges Amortization of cash flow hedge gains (losses), net of tax $ — $ (1) $ — $ (1) The following table presents the net of tax impact of the overall effectiveness of derivative instruments designated as cash flow hedging instruments within the Company’s condensed consolidated statements of comprehensive income (loss) (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Derivatives designated as cash flow hedges Amortization of cash flow hedges, net of tax $ — $ 1 $ — $ 1 Interest rate derivative contract gains (losses), net of tax — 2 — (5) Total $ — $ 3 $ — $ (4) As of June 30, 2024, $7 million was included in accumulated other comprehensive income (loss) related to interest rate hedging instruments that is expected to be reclassified into aircraft rent within the Company’s condensed consolidated statements of operations over the aircraft or engine lease term. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of the following (in millions): June 30, 2024 December 31, 2023 Passenger and other taxes and fees payable $ 163 $ 125 Salaries, wages and benefits 107 107 Station obligations 73 69 Aircraft maintenance 43 76 Fuel liabilities 36 35 Leased aircraft return costs 22 1 Other current liabilities 41 48 Total other current liabilities $ 485 $ 461 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt obligations are as follows (in millions): June 30, 2024 December 31, 2023 Secured debt: Pre-delivery credit facility (a) $ 300 $ 312 Building note (b) 6 16 Unsecured debt: Affinity card advance purchase of miles (c) 83 80 PSP promissory notes (d) 66 66 Total debt 455 474 Less: current maturities of long-term debt, net (263) (251) Less: total debt acquisition costs and other discounts, net (3) (4) Long-term debt, net $ 189 $ 219 __________________ (a) The Company, through an affiliate, entered into the pre-delivery deposit payment (“PDP”) facility with Citibank, N.A., as facility agent, in December 2014 (as amended from time to time, the “PDP Financing Facility”). The PDP Financing Facility is collateralized by the Company’s purchase agreement for Airbus A320neo family aircraft deliveries (see Note 9) through the term of the facility, which extends through December 2026. The total available capacity of the PDP Financing Facility is $365 million. Interest is paid every 90 days based on the Secured Overnight Financing Rate (“SOFR”) plus a margin for each individual tranche. The PDP Financing Facility consists of separate loans for each PDP aircraft. Each separate loan matures upon the earlier of (i) delivery of that aircraft to the Company by Airbus, (ii) the date one month following the last day of the scheduled delivery month of such aircraft and (iii) if there is a delay in delivery of aircraft, depending on the cause of the delivery delay, up to six months following the last day of the scheduled delivery month of such aircraft. The PDP Financing Facility will be repaid periodically according to the preceding sentence, with the PDP Financing Facility maturing in December 2026. (b) Represents a note with a commercial bank related to the Company’s headquarters. In June 2024, the Company’s previous note related to its headquarters reached maturity and a final payment of $16 million was made to cover all unpaid principal, accrued unpaid interest and other amounts due. Subsequent to this final payment, the Company entered into a new $6 million note with a different commercial bank maturing in June 2031. Under the terms of the new outstanding note, the Company is required to make regular monthly payments on principal and unpaid interest. On the maturity date, one final balloon payment will be made to cover all unpaid principal, accrued unpaid interest and other amounts due. Interest on the new note will accrue on the unpaid principal balance at a fixed annual rate of 6.79%. (c) The Company entered into an agreement with Barclays in 2003 which, as amended, provides for joint marketing, grants certain benefits to Cardholders and allows Barclays to market using the Company’s customer database, through 2029. Cardholders earn miles under the FRONTIER Miles program and the Company sells miles at agreed-upon rates to Barclays and earns fees from Barclays for the acquisition, retention and use of the co-branded credit card by Cardholders. In addition, Barclays will pre-purchase miles if the Company so requests and meets certain conditions precedent. The pre-purchased miles facility amount available to the Company is to be reset on January 15 of each calendar year through, and including, January 15, 2028, based on the aggregate amount of fees payable by Barclays to the Company on a calendar year basis and subject to certain other conditions, up to an aggregate maximum facility amount of $200 million. The Company pays interest on a monthly basis, which is based on a one-month Effective Federal Funds Rate (“EFFR”) plus a margin. Beginning March 2028, the facility is scheduled to be repaid in 12 equal monthly installments. (d) As a result of the Company’s participation in the payroll support programs offered by the U.S. Department of the Treasury (the “Treasury”), the Company obtained a series of 10-year, low-interest loans from the Treasury (collectively, the “PSP Promissory Notes”) that are due between 2030 and 2031. The PSP Promissory Notes include an annual interest rate of 1.00% for the first five years and the SOFR plus 2.00% in the final five years, with bi-annual interest payments. The loans can be prepaid at par at any time without incurring a penalty. In connection with the term loan facility entered into with the Treasury on September 28, 2020, which was repaid in full on February 2, 2022, and the PSP Promissory Notes, the Company issued warrants to purchase 3,117,940 shares of FGHI common stock at a weighted-average price of $6.95 per share. These warrants will expire between May 2025 and June 2026. No warrants have been exercised as of June 30, 2024. Cash payments for interest related to debt were $17 million and $12 million for the six months ended June 30, 2024 and 2023, respectively. The Company has caused standby letters of credit and surety bonds to be issued to various airport authorities and vendors that are collateralized by a portion of the Company’s property and equipment and, as of June 30, 2024 and December 31, 2023, the Company did not have any outstanding letters of credit that were drawn upon. As of June 30, 2024, future maturities of debt are payable as follows (in millions): Total Remainder of 2024 $ 141 2025 159 2026 — 2027 — 2028 69 Thereafter 86 Total debt principal payments $ 455 The Company continues to monitor covenant compliance with various parties, including, but not limited to, its lenders and credit card processors, and as of June 30, 2024, the Company was in compliance with all of its covenants. |
Subsequent Events | Subsequent Events Flight Equipment Commitments In August 2024, the Company and Airbus entered into a binding term sheet, subject to execution of customary closing documentation, to, among other things, update the remaining firm aircraft purchase order delivery schedule, which defers previously scheduled firm aircraft delivery dates from 2025 through 2028 to later years. These changes are reflected in the table below and reflect scheduled aircraft received in July 2024: A320neo A321neo Total Aircraft Engines Year Ending Remainder of 2024 — 9 9 1 2025 8 13 21 4 2026 7 15 22 4 2027 8 26 34 3 2028 4 30 34 2 Thereafter — 76 76 — Total 27 169 196 14 |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Operating Leases | Operating Leases Aircraft As of June 30, 2024, the Company leased 148 aircraft with remaining terms ranging from 8 months to 12 years, all of which are under operating leases and are included within operating lease right-of-use assets and operating lease liabilities on the Company’s condensed consolidated balance sheets. In addition, as of June 30, 2024, the Company leased 33 spare engines which are all under operating leases, with the remaining term ranging from one month to 12 years. As of June 30, 2024, the lease rates for 10 of the engines depend on usage-based metrics which are variable and, as such, these leases are not recorded on the Company’s condensed consolidated balance sheets as operating lease right-of-use assets or as operating lease liabilities. During the three and six months ended June 30, 2024 and 2023, the Company executed sale-leaseback transactions with third-party lessors for six, twelve, one and four new Airbus A320neo family aircraft, respectively. The Company did not enter into any direct leases during the three and six months ended June 30, 2024 and entered into two and five direct leases for new Airbus A320neo family aircraft during the three and six months ended June 30, 2023, respectively. Additionally, the Company completed sale-leaseback transactions for two, two, one and two engines during the three and six months ended June 30, 2024 and 2023, respectively. All of the leases from the sale-leaseback transactions are accounted for as operating leases. The Company recognized sale-leaseback gain transactions of $77 million, $148 million, $17 million and $57 million during the three and six months ended June 30, 2024 and 2023, respectively, which are included as a component of other operating expenses within the Company’s condensed consolidated statements of operations. Aircraft Rent Expense and Maintenance Obligations During the three and six months ended June 30, 2024 and 2023, aircraft rent expense was $147 million, $306 million, $148 million and $279 million, respectively. Aircraft rent expense includes supplemental rent, which is made up of maintenance-related reserves and probable lease return condition obligations. Supplemental rent expense (benefit) for maintenance-related reserves was $(7) million for each of the three and six months ended June 30, 2024, and $(2) million for each of the three and six months ended June 30, 2023. The portion of supplemental rent expense related to probable lease return condition obligations was $1 million, $14 million, $22 million and $24 million for the three and six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024 and December 31, 2023, the Company’s total leased aircraft return cost liability was $31 million and $26 million, respectively, which are reflected in other current liabilities and other long-term liabilities within the Company’s condensed consolidated balance sheets. During the three months ended June 30, 2024, the Company reached an agreement with one of its aircraft lessors which eliminated requirements to pay maintenance reserves held as collateral in advance of the Company’s required performance of major maintenance activities on its aircraft leases. As a result of the agreement, the lessor disbursed back to the Company previously paid aircraft maintenance deposits of approximately $104 million, resulting in the Company no longer having any aircraft maintenance deposits with any of its lessors as of June 30, 2024. During the three months ended June 30, 2024, the Company extended the term for certain aircraft operating leases that were slated to expire between 2025 and 2027. For the three and six months ended June 30, 2024, the Company recorded a benefit of $11 million and $14 million, respectively, to aircraft rent in the Company’s condensed consolidated statements of operations related to previously accrued lease return costs that were variable in nature and associated with the anticipated utilization and condition of the airframes and engines at the original return date. Given the extension of these aircraft operating leases, such variable return costs are no longer probable of occurring. During the six months ended June 30, 2023, the Company extended the term for certain aircraft operating leases that were slated to expire in the fourth quarter of 2023. For the six months ended June 30, 2023, the Company recorded an $18 million benefit to aircraft rent in the Company’s condensed consolidated statement of operations related to previously accrued lease return costs that were variable in nature and associated with the anticipated utilization and condition of the airframes and engines at the original return date. Given the extension of these aircraft operating leases, such variable return costs are no longer probable of occurring. Airport Facilities The Company’s facility leases are primarily for space at approximately 100 airports, primarily in the United States. These leases are classified as operating leases and reflect the use of airport terminals, ticket counters, office space and maintenance facilities. Generally, this space is leased from government agencies that control the use of the airport. The majority of these leases are short-term in nature and renew on an evergreen basis. For these leases, the contractual term is used as the lease term. As of June 30, 2024, the remaining lease terms vary from one month to 10 years. At the majority of the U.S. airports, the lease rates depend on airport operating costs or use of the facilities and are reset at least annually, and because of the variable nature of the rates, these leases are not recorded on the Company’s condensed consolidated balance sheets as right-of-use assets and lease liabilities. Other Ground Property and Equipment The Company leases certain other assets such as flight training equipment, building space, and various other equipment. Certain of the Company’s leases for other assets are deemed to contain fixed rental payments and, as such, are classified as operating leases and are recorded on the Company’s condensed consolidated balance sheets as a right-of-use asset and liability. The remaining lease terms ranged from one month to eight years as of June 30, 2024. Lease Costs The table below presents certain information related to lease costs for operating leases during the three and six months ended June 30, 2024 and 2023 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost (a) $ 155 $ 131 $ 302 $ 258 Variable lease cost (a) 94 70 173 144 Total lease costs $ 249 $ 201 $ 475 $ 402 _________________ (a) Expenses are included within aircraft rent, station operations, maintenance, materials and repairs and other operating within the Company’s condensed consolidated statements of operations. During the three and six months ended June 30, 2024 and 2023, the Company acquired, through new or modified operating leases, operating lease assets totaling $571 million, $826 million, $107 million and $338 million, respectively, which are included in operating lease right-of-use assets on the Company’s condensed consolidated balance sheets. During the three and six months ended June 30, 2024 and 2023, the Company paid cash of $155 million, $302 million, $130 million and $257 million, respectively, for amounts included in the measurement of lease liabilities. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation During the three and six months ended June 30, 2024 and 2023, the Company recognized $5 million, $9 million, $3 million and $7 million, respectively, in stock-based compensation expense, which is included as a component of salaries, wages and benefits within the Company’s condensed consolidated statements of operations. Stock Options and Restricted Stock Units During the six months ended June 30, 2024, no stock options were granted and 758,217 vested stock options were exercised with a weighted-average exercise price of $1.25 per share. As of June 30, 2024, the weighted-average exercise price of outstanding stock options was $5.26 per share. During the six months ended June 30, 2024, 1,409,000 restricted stock units were issued with a weighted-average grant date fair value of $5.53 per share. During the six months ended June 30, 2024, 990,525 restricted stock units vested, of which 275,866 restricted stock units were withheld to cover employees’ tax withholding obligations, with a weighted-average grant date fair value of $11.79 and $12.68 per share, respectively. Stockholders’ Equity As of June 30, 2024 and December 31, 2023, the Company had authorized common stock (voting), common stock (non-voting) and preferred stock of 750,000,000, 150,000,000 and 10,000,000 shares, respectively, of which only common stock (voting) were issued and outstanding. All classes of equity have a par value of $0.001 per share. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Flight Equipment Commitments As of June 30, 2024, the Company’s firm aircraft and engine purchase orders consisted of the following: A320neo A321neo Total Aircraft (a) Engines Year Ending Remainder of 2024 — 11 11 1 2025 14 23 37 4 2026 19 24 43 4 2027 14 21 35 3 2028 2 38 40 2 Thereafter — 32 32 — Total 49 149 198 14 __________________ (a) While the schedule presented reflects the contractual delivery dates as of June 30, 2024, the Company has recently experienced delays in the deliveries of Airbus aircraft which may persist in future periods. The Company is party to certain aircraft purchase agreements with Airbus (as amended from time to time, the “Airbus Purchase Agreements”) pursuant to which, as of June 30, 2024, the Company had commitments to purchase an aggregate of 49 A320neo and 149 A321neo aircraft, with deliveries expected through 2029 per the latest delivery schedule. In June 2024, the Company provided notice to Airbus as permitted in the Airbus Purchase Agreements that it will not purchase any A321XLR aircraft and will convert 18 A320neo to A321neo aircraft. This conversion has been reflected in the table above. The Airbus Purchase Agreements also provide for, among other things, varying purchase incentives for each aircraft type (e.g., A320neo versus A321neo), which are allocated proportionally by aircraft type over the remaining aircraft to be delivered so that each aircraft’s capitalized cost upon induction would be equal. Therefore, as cash paid for deliveries is greater than the capitalized cost due to the allocation of these purchase incentives, a deferred purchase incentive is recognized, which will ultimately be offset by future deliveries of aircraft with lower cash payments than their associated capitalized cost. As of June 30, 2024 and December 31, 2023, the Company had $88 million and $78 million, respectively, of deferred purchase incentives recognized within other assets on the Company’s condensed consolidated balance sheets. As of June 30, 2024, purchase commitments for these aircraft and engines, including estimated amounts for contractual price escalations and PDPs, consisted of the following (in millions): Total Year Ending Remainder of 2024 $ 668 2025 2,224 2026 2,477 2027 2,066 2028 2,467 Thereafter 2,002 Total $ 11,904 Litigation and Other Contingencies The Company is subject to commercial litigation claims and to administrative and regulatory proceedings and reviews that may be asserted or maintained from time to time. During 2023, the DOT sent the Company a request for information to assist in its investigation into whether the Company cared for its customers as required by law during Winter Storm Elliott, which caused significant operational disruptions and spanned from December 21, 2022 to January 2, 2023, including providing adequate customer service assistance, prompt flight status notifications, and proper and timely refunds. The Company is fully cooperating with the DOT request. The Company regularly evaluates the status of such matters to assess whether a loss is probable and reasonably estimable in determining whether an accrual is appropriate. Furthermore, in determining whether disclosure is appropriate, the Company evaluates each matter to assess if there is at least a reasonable possibility that a loss or additional losses may have been incurred and whether an estimate of possible loss or range of loss can be made. The ultimate outcome of legal actions is unpredictable and can be subject to significant uncertainties, and it is difficult to determine whether any loss is probable or even possible. Additionally, it is also difficult to estimate the amount of loss and there may be matters for which a loss is probable or reasonably possible but not currently estimable. Thus, actual losses may be in excess of any recorded liability or the range of reasonably possible loss. The Company believes the ultimate outcome of any potential lawsuits, proceedings and reviews will likely not, individually or in the aggregate, have a material adverse effect on its condensed consolidated financial position, liquidity or results of operations and that the Company’s current accruals cover matters where loss is deemed probable and can be reasonably estimated. In situations where the Company may be a plaintiff and receives, or expects to receive, a favorable ruling related to litigation, the Company follows the accounting standards codification guidance for gain contingencies. The Company does not recognize a gain contingency within its condensed consolidated financial statements prior to the settlement of the underlying events or contingencies associated with the gain contingency. As a result, the consideration related to a gain contingency is recorded in the condensed consolidated financial statements during the period in which all underlying events or contingencies are resolved and the gain is realized. During the three months ended June 30, 2024, the Company received a favorable ruling in the U.S District Court for the Southern District of New York regarding a breach of contract action against a former aircraft lessor in which the Company was awarded $50 million in damages plus post-judgement interest. Given that the judgment has been appealed to the Unites States Court of Appeals for the Second Circuit, the Company has not recorded any amounts within the condensed consolidated financial statements as of June 30, 2024. Employees The Company has seven union-represented employee groups that together represented approximately 88% of all employees as of June 30, 2024. The table below sets forth the Company’s employee groups and status of the collective bargaining agreements as of June 30, 2024: Percentage of Workforce Employee Group Representative Amendable Date (a) June 30, 2024 Pilots Air Line Pilots Association (ALPA) January 2024 (b) 26% Flight Attendants Association of Flight Attendants (AFA-CWA) May 2024 (c) 53% Aircraft Technicians International Brotherhood of Teamsters (IBT) May 2025 6% Aircraft Appearance Agents IBT October 2023 (d) 1% Dispatchers Transport Workers Union (TWU) August 2028 1% Material Specialists IBT March 2022 (d) 1% Maintenance Controllers IBT October 2023 (d) <1% __________________ (a) Subject to standard early opener provisions. (b) ALPA filed for mediation through the National Mediation Board in January 2024, and the parties are meeting regularly as part of the mediation process. (c) In November 2023, AFA-CWA exercised their contractual right to open negotiations early. Negotiations are currently ongoing. (d) The Company’s collective bargaining agreements with its aircraft appearance agents, material specialists, and maintenance controllers, each represented by IBT, were still amendable as of June 30, 2024, and pursuant to the Railway Labor Act the parties continue to be bound by the existing agreements as negotiations continue. The Company is self-insured for health care claims, subject to a stop-loss policy, for eligible participating employees and qualified dependent medical and dental claims, subject to deductibles and limitations. The Company’s liabilities for claims incurred but not reported are determined based on an estimate of the ultimate aggregate liability for claims incurred. The estimate is calculated from actual claim rates and adjusted periodically as necessary. The Company had accrued $6 million and $5 million for health care claims estimated to be incurred but not yet paid, as of June 30, 2024 and December 31, 2023, respectively, which are included as a component of other current liabilities on the Company’s condensed consolidated balance sheets. General Indemnifications The Company has various leases with respect to real property as well as various agreements among airlines relating to fuel consortia or fuel farms at airports. Under some of these contracts, the Company is party to joint and several liability regarding environmental damages. Under others, where the Company is a member of an LLC or other entity that contracts directly with the airport operator, liabilities are borne through the fuel consortia structure. The Company’s aircraft, services, equipment lease and sale and financing agreements typically contain provisions requiring the Company, as the lessee, obligor or recipient of services, to indemnify the other parties to those agreements, including certain of those parties’ related persons, against virtually any liabilities that might arise from the use or operation of the aircraft or such other equipment. The Company believes that its insurance would cover most of its exposure to liabilities and related indemnities associated with the commercial real estate leases and aircraft, services, equipment lease and sale and financing agreements described above. Certain of the Company’s aircraft and other financing transactions include provisions that require payments to preserve an expected economic return to the lenders if that economic return is diminished due to certain changes in law or regulations. In certain of these financing transactions and other agreements, the Company also bears the risk of certain changes in tax laws that would subject payments to non-U.S. entities to withholding taxes. Certain of these indemnities survive the length of the related financing or lease. The Company cannot reasonably estimate the potential future payments under the indemnities and related provisions described above because it cannot predict (i) when and under what circumstances these provisions may be triggered, and (ii) the amount that would be payable if the provisions were triggered because the amounts would be based on facts and circumstances existing at such time. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under the two-class method, the Company attributes net income to common stock and other participating rights (including those with vested share-based awards). Basic earnings per share is calculated by taking net income, less earnings allocated to participating rights, divided by the basic weighted-average common stock outstanding. In accordance with the two-class method, diluted earnings per share is calculated using the more dilutive impact of the treasury-stock method or from reducing net income for the earnings allocated to participating rights. The following table sets forth the computation of earnings (loss) per share on a basic and diluted basis pursuant to the two-class method for the periods indicated (in millions, except for share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic: Net income (loss) $ 31 $ 71 $ 5 $ 58 Less: net income attributable to participating rights — (2) — (2) Net income (loss) attributable to common stockholders $ 31 $ 69 $ 5 $ 56 Weighted-average common shares outstanding, basic 224,214,030 219,402,647 223,822,565 218,792,850 Earnings (loss) per share, basic $ 0.14 $ 0.32 $ 0.02 $ 0.26 Diluted: Net income (loss) $ 31 $ 71 $ 5 $ 58 Less: net income attributable to participating rights — (2) — (2) Net income (loss) attributable to common stockholders $ 31 $ 69 $ 5 $ 56 Weighted-average common shares outstanding, basic 224,214,030 219,402,647 223,822,565 218,792,850 Effect of dilutive potential common shares 2,389,768 1,023,012 2,380,811 1,430,423 Weighted-average common shares outstanding, diluted 226,603,798 220,425,659 226,203,376 220,223,273 Earnings (loss) per share, diluted $ 0.14 $ 0.31 $ 0.02 $ 0.26 Approximately 5,007,745 and 5,154,621 shares were excluded from the computation of diluted weighted-average shares for the three and six months ended June 30, 2024, respectively, due to anti-dilutive effects. Approximately 2,886,151 and 2,264,024 shares were excluded from the computation of diluted weighted-average shares for the three and six months ended 2023, respectively, due to anti-dilutive effects. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s provision for income taxes during interim reporting periods has historically been calculated by applying an estimate of the annual effective tax rate for the full fiscal year to pretax income (loss) excluding unusual or infrequently occurring discrete items for the reporting period. When a reliable estimate cannot be made, the C ompany computes the interim provision based on the actual effective tax rate for the year-to-date period by applying the discrete method. The Company determined that given small changes in estimated ordinary income would result in significant variation in the estimated annual effective tax rate for the current year and the resulting uncertainty of the impact on the valuation allowance, the discrete method represents the best estimate of the actual effective tax rate and the Company has calculated its effective tax using the discrete method for the three and six months ended June 30, 2024. The Company’s effective tax rate for the three and six months ended June 30, 2024 was an expense of 3.1% and 37.5%, respectively, on pre-tax income , compared to an expense of 19.3% and 18.3%, respectively, on pre-tax income for the three and six months ended June 30, 2023 . The effective tax rate for the three months ended June 30, 2024 was lower than the statutory rate primarily related to a decrease in the Company’s valuation allowance relating to U.S. federal and state net operating losses. The effective tax rate for the six months ended June 30, 2024 was higher than the statutory rate primarily due to the non-deductibility of certain executive compensation costs and other employee benefits, as well as shortfalls related to the vesting and exercise of the Company’s share-based awards offset by a decrease in the valuation allowance. The Company’s effective tax rate for the three and six months ended June 30, 2023 was lower than the statutory rate primarily due to excess tax benefits associated with the Company’s stock-based compensation arrangements. The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. Quarterly, the Company assesses whether it is more likely than not that sufficient taxable income will be generated to realize deferred income tax assets, and a valuation allowance is recorded when it is more likely than not that some portion, or all, of the Company’s deferred tax assets, will not be realized. The Company considers sources of taxable income from prior period carryback periods, future reversals of existing taxable temporary differences, tax planning strategies and future projected taxable income when assessing the future realization of deferred tax assets. In assessing the sources of taxable income and the need for a valuation allowance, the Company considers all available positive and negative evidence, which includes a recent history of cumulative losses. As of June 30, 2024 , the Company remains in a historical three-year cumulative loss position, which is significant objective negative evidence in considering whether deferred tax assets are realizable. Such objective negative evidence outweighs other subjective positive evidence, such as the projection of future taxable income. As a result, as of June 30, 2024 , the Company has a valuation allowance of $35 million against its deferred tax assets for U.S. federal and state net operating loss carryforwards, which includes reductions in the Company’s valuation allowance of $7 million and $2 million, respectively, recorded during the three and six months ended June 30, 2024 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under ASC 820, Fair Value Measurements and Disclosures , disclosures relating to how fair value is determined for assets and liabilities are required, and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs, as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques in order to assess the fair value of its financial assets and liabilities. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash are comprised of liquid money market funds, time deposits and cash, and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial institutions and holds restricted cash to secure medical claims paid. Cash, cash equivalents and restricted cash are carried at cost, which management believes approximates fair value. As of June 30, 2024 and December 31, 2023, the Company had less than $1 million of restricted cash. Debt The estimated fair value of the Company’s debt agreements has been determined to be Level 3 measurement, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes a discounted cash flow method to estimate the fair value of the Level 3 debt. The carrying amounts and estimated fair values of the Company’s debt are as follows (in millions): June 30, 2024 December 31, 2023 Carrying Estimated Fair Value Carrying Value Estimated Fair Value Secured debt: Pre-delivery credit facility $ 300 $ 304 $ 312 $ 316 Building note 6 6 16 16 Unsecured debt: Affinity card advance purchase of miles 83 81 80 76 PSP promissory notes 66 60 66 57 Total debt $ 455 $ 451 $ 474 $ 465 The tables below present disclosures about the fair value of assets and liabilities measured at fair value on a recurring basis on the Company’s condensed consolidated balance sheets (in millions): Fair Value Measurements as of June 30, 2024 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Cash and cash equivalents Cash and cash equivalents $ 658 $ 658 $ — $ — Fair Value Measurements as of December 31, 2023 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Cash and cash equivalents Cash and cash equivalents $ 609 $ 609 $ — $ — The Company had no transfers of assets or liabilities between fair value hierarchy levels between December 31, 2023 and June 30, 2024. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties Management Services Indigo Partners LLC (“Indigo Partners”) managed an investment fund, Indigo Frontier Holdings Company, LLC (“Indigo Frontier”), that was the controlling stockholder of the Company until April 2024, when Indigo Frontier distributed all of its shares held to its members on a pro rata basis, in-kind and without consideration. Certain affiliates of Indigo Partners continue to be substantial stockholders of the Company. Indigo Partners continues to provide management services to the Company, for which the Company is assessed a quarterly fee. The Company recorded $1 million for each of the three and six months ended June 30, 2024 and 2023 for these fees, which are included as other operating expenses within the Company’s condensed consolidated statements of operations. Codeshare Arrangement The Company entered into a codeshare agreement with Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (an airline based in Mexico doing business as “Volaris”) during 2018. Two of the Company’s directors are members of the board of directors of Volaris and one is an honorary director. In August 2018, the Company and Volaris began operating scheduled codeshare flights. Each party bears its own costs and expenses of performance under the codeshare agreement. The codeshare agreement is subject to automatic renewals and may be terminated by either party at any time upon the satisfaction of certain conditions. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Flight Equipment Commitments In August 2024, the Company and Airbus entered into a binding term sheet, subject to execution of customary closing documentation, to, among other things, update the remaining firm aircraft purchase order delivery schedule, which defers previously scheduled firm aircraft delivery dates from 2025 through 2028 to later years. These changes are reflected in the table below and reflect scheduled aircraft received in July 2024: A320neo A321neo Total Aircraft Engines Year Ending Remainder of 2024 — 9 9 1 2025 8 13 21 4 2026 7 15 22 4 2027 8 26 34 3 2028 4 30 34 2 Thereafter — 76 76 — Total 27 169 196 14 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 31 | $ (26) | $ 71 | $ (13) | $ 5 | $ 58 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Steve Schuller [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 19, 2024, Steve Schuller, our Senior Vice President of Human Resources, adopted a Rule 10b5-1(c) trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 40,000 shares of our common stock until May 16, 2026. | |
Name | Steve Schuller | |
Title | Senior Vice President of Human Resources | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 19, 2024 | |
Expiration Date | May 16, 2026 | |
Arrangement Duration | 727 days | |
Aggregate Available | 40,000 | 40,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States (“GAAP”) |
Basis of Presentation | The condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States (“GAAP”) and include the accounts of Frontier Group Holdings, Inc. (“FGHI” or the “Company”) and its wholly-owned direct and indirect subsidiaries, including Frontier Airlines Holdings, Inc. (“FAH”) and Frontier Airlines, Inc. (“Frontier”). All wholly-owned subsidiaries are consolidated, with all intercompany transactions and balances being eliminated. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Frequent Flyer Program | The Company’s FRONTIER Miles program provides frequent flyer travel awards to program members based on accumulated miles. Miles are generally accumulated as a result of travel, purchases using the co-branded credit card and purchases from other participating partners. The Company defers revenue for miles earned by passengers under its FRONTIER Miles program based on the equivalent ticket value a passenger receives by redeeming miles for a ticket rather than paying cash. The Company has a credit card affinity agreement with its credit card partner, Barclays Bank Delaware (“Barclays”), through 2029, which provides for joint marketing, grants certain benefits to co-branded credit cardholders (“Cardholders”) and allows Barclays to market using the Company’s customer database. Cardholders earn miles under the FRONTIER Miles program and the Company sells miles at agreed-upon rates to Barclays and earns fees from Barclays for the acquisition, retention and use of the co-branded credit card by consumers. |
Fair Value Measurement | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques in order to assess the fair value of its financial assets and liabilities. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash are comprised of liquid money market funds, time deposits and cash, and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial institutions and holds restricted cash to secure medical claims paid. Cash, cash equivalents and restricted cash are carried at cost, which management believes approximates fair value. As of June 30, 2024 and December 31, 2023, the Company had less than $1 million of restricted cash. Debt The estimated fair value of the Company’s debt agreements has been determined to be Level 3 measurement, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes a discounted cash flow method to estimate the fair value of the Level 3 debt. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated operating revenues are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Passenger revenues: Fare $ 355 $ 361 $ 679 $ 664 Non-fare passenger revenues: Service fees 266 245 482 462 Baggage 233 232 437 453 Seat selection 67 74 131 146 Other 29 33 66 50 Total non-fare passenger revenue 595 584 1,116 1,111 Total passenger revenues 950 945 1,795 1,775 Other revenues 23 22 43 40 Total operating revenues $ 973 $ 967 $ 1,838 $ 1,815 |
Revenue by Geographic Region | Operating revenues by principal geographic region, as defined by the U.S. Department of Transportation (the “DOT”), are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Domestic $ 904 $ 877 $ 1,706 $ 1,658 Latin America 69 90 132 157 Total operating revenues $ 973 $ 967 $ 1,838 $ 1,815 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following (in millions): June 30, 2024 December 31, 2023 Supplier incentives $ 72 $ 50 Prepaid expenses 18 21 Forgivable loans 17 13 Income tax and other taxes receivable 4 3 Other 5 3 Total other current assets $ 116 $ 90 |
Financial Derivative Instrume_2
Financial Derivative Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the effect of interest rate derivative instruments reflected in rent expense within the Company’s condensed consolidated statements of operations (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Derivatives designated as cash flow hedges Amortization of cash flow hedge gains (losses), net of tax $ — $ (1) $ — $ (1) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the net of tax impact of the overall effectiveness of derivative instruments designated as cash flow hedging instruments within the Company’s condensed consolidated statements of comprehensive income (loss) (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Derivatives designated as cash flow hedges Amortization of cash flow hedges, net of tax $ — $ 1 $ — $ 1 Interest rate derivative contract gains (losses), net of tax — 2 — (5) Total $ — $ 3 $ — $ (4) |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in millions): June 30, 2024 December 31, 2023 Passenger and other taxes and fees payable $ 163 $ 125 Salaries, wages and benefits 107 107 Station obligations 73 69 Aircraft maintenance 43 76 Fuel liabilities 36 35 Leased aircraft return costs 22 1 Other current liabilities 41 48 Total other current liabilities $ 485 $ 461 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The Company’s debt obligations are as follows (in millions): June 30, 2024 December 31, 2023 Secured debt: Pre-delivery credit facility (a) $ 300 $ 312 Building note (b) 6 16 Unsecured debt: Affinity card advance purchase of miles (c) 83 80 PSP promissory notes (d) 66 66 Total debt 455 474 Less: current maturities of long-term debt, net (263) (251) Less: total debt acquisition costs and other discounts, net (3) (4) Long-term debt, net $ 189 $ 219 __________________ (a) The Company, through an affiliate, entered into the pre-delivery deposit payment (“PDP”) facility with Citibank, N.A., as facility agent, in December 2014 (as amended from time to time, the “PDP Financing Facility”). The PDP Financing Facility is collateralized by the Company’s purchase agreement for Airbus A320neo family aircraft deliveries (see Note 9) through the term of the facility, which extends through December 2026. The total available capacity of the PDP Financing Facility is $365 million. Interest is paid every 90 days based on the Secured Overnight Financing Rate (“SOFR”) plus a margin for each individual tranche. The PDP Financing Facility consists of separate loans for each PDP aircraft. Each separate loan matures upon the earlier of (i) delivery of that aircraft to the Company by Airbus, (ii) the date one month following the last day of the scheduled delivery month of such aircraft and (iii) if there is a delay in delivery of aircraft, depending on the cause of the delivery delay, up to six months following the last day of the scheduled delivery month of such aircraft. The PDP Financing Facility will be repaid periodically according to the preceding sentence, with the PDP Financing Facility maturing in December 2026. (b) Represents a note with a commercial bank related to the Company’s headquarters. In June 2024, the Company’s previous note related to its headquarters reached maturity and a final payment of $16 million was made to cover all unpaid principal, accrued unpaid interest and other amounts due. Subsequent to this final payment, the Company entered into a new $6 million note with a different commercial bank maturing in June 2031. Under the terms of the new outstanding note, the Company is required to make regular monthly payments on principal and unpaid interest. On the maturity date, one final balloon payment will be made to cover all unpaid principal, accrued unpaid interest and other amounts due. Interest on the new note will accrue on the unpaid principal balance at a fixed annual rate of 6.79%. (c) The Company entered into an agreement with Barclays in 2003 which, as amended, provides for joint marketing, grants certain benefits to Cardholders and allows Barclays to market using the Company’s customer database, through 2029. Cardholders earn miles under the FRONTIER Miles program and the Company sells miles at agreed-upon rates to Barclays and earns fees from Barclays for the acquisition, retention and use of the co-branded credit card by Cardholders. In addition, Barclays will pre-purchase miles if the Company so requests and meets certain conditions precedent. The pre-purchased miles facility amount available to the Company is to be reset on January 15 of each calendar year through, and including, January 15, 2028, based on the aggregate amount of fees payable by Barclays to the Company on a calendar year basis and subject to certain other conditions, up to an aggregate maximum facility amount of $200 million. The Company pays interest on a monthly basis, which is based on a one-month Effective Federal Funds Rate (“EFFR”) plus a margin. Beginning March 2028, the facility is scheduled to be repaid in 12 equal monthly installments. (d) As a result of the Company’s participation in the payroll support programs offered by the U.S. Department of the Treasury (the “Treasury”), the Company obtained a series of 10-year, low-interest loans from the Treasury (collectively, the “PSP Promissory Notes”) that are due between 2030 and 2031. The PSP Promissory Notes include an annual interest rate of 1.00% for the first five years and the SOFR plus 2.00% in the final five years, with bi-annual interest payments. The loans can be prepaid at par at any time without incurring a penalty. In connection with the term loan facility entered into with the Treasury on September 28, 2020, which was repaid in full on February 2, 2022, and the PSP Promissory Notes, the Company issued warrants to purchase 3,117,940 shares of FGHI common stock at a weighted-average price of $6.95 per share. These warrants will expire between May 2025 and June 2026. No warrants have been exercised as of June 30, 2024. |
Schedule of Maturities of Long-term Debt | As of June 30, 2024, future maturities of debt are payable as follows (in millions): Total Remainder of 2024 $ 141 2025 159 2026 — 2027 — 2028 69 Thereafter 86 Total debt principal payments $ 455 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Costs | The table below presents certain information related to lease costs for operating leases during the three and six months ended June 30, 2024 and 2023 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost (a) $ 155 $ 131 $ 302 $ 258 Variable lease cost (a) 94 70 173 144 Total lease costs $ 249 $ 201 $ 475 $ 402 _________________ (a) Expenses are included within aircraft rent, station operations, maintenance, materials and repairs and other operating within the Company’s condensed consolidated statements of operations. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | As of June 30, 2024, the Company’s firm aircraft and engine purchase orders consisted of the following: A320neo A321neo Total Aircraft (a) Engines Year Ending Remainder of 2024 — 11 11 1 2025 14 23 37 4 2026 19 24 43 4 2027 14 21 35 3 2028 2 38 40 2 Thereafter — 32 32 — Total 49 149 198 14 __________________ (a) While the schedule presented reflects the contractual delivery dates as of June 30, 2024, the Company has recently experienced delays in the deliveries of Airbus aircraft which may persist in future periods. In August 2024, the Company and Airbus entered into a binding term sheet, subject to execution of customary closing documentation, to, among other things, update the remaining firm aircraft purchase order delivery schedule, which defers previously scheduled firm aircraft delivery dates from 2025 through 2028 to later years. These changes are reflected in the table below and reflect scheduled aircraft received in July 2024: A320neo A321neo Total Aircraft Engines Year Ending Remainder of 2024 — 9 9 1 2025 8 13 21 4 2026 7 15 22 4 2027 8 26 34 3 2028 4 30 34 2 Thereafter — 76 76 — Total 27 169 196 14 |
Contractual Obligation, Fiscal Year Maturity | As of June 30, 2024, purchase commitments for these aircraft and engines, including estimated amounts for contractual price escalations and PDPs, consisted of the following (in millions): Total Year Ending Remainder of 2024 $ 668 2025 2,224 2026 2,477 2027 2,066 2028 2,467 Thereafter 2,002 Total $ 11,904 |
Multiemployer Plan | The table below sets forth the Company’s employee groups and status of the collective bargaining agreements as of June 30, 2024: Percentage of Workforce Employee Group Representative Amendable Date (a) June 30, 2024 Pilots Air Line Pilots Association (ALPA) January 2024 (b) 26% Flight Attendants Association of Flight Attendants (AFA-CWA) May 2024 (c) 53% Aircraft Technicians International Brotherhood of Teamsters (IBT) May 2025 6% Aircraft Appearance Agents IBT October 2023 (d) 1% Dispatchers Transport Workers Union (TWU) August 2028 1% Material Specialists IBT March 2022 (d) 1% Maintenance Controllers IBT October 2023 (d) <1% __________________ (a) Subject to standard early opener provisions. (b) ALPA filed for mediation through the National Mediation Board in January 2024, and the parties are meeting regularly as part of the mediation process. (c) In November 2023, AFA-CWA exercised their contractual right to open negotiations early. Negotiations are currently ongoing. (d) The Company’s collective bargaining agreements with its aircraft appearance agents, material specialists, and maintenance controllers, each represented by IBT, were still amendable as of June 30, 2024, and pursuant to the Railway Labor Act the parties continue to be bound by the existing agreements as negotiations continue. |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share Basic And Diluted | The following table sets forth the computation of earnings (loss) per share on a basic and diluted basis pursuant to the two-class method for the periods indicated (in millions, except for share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic: Net income (loss) $ 31 $ 71 $ 5 $ 58 Less: net income attributable to participating rights — (2) — (2) Net income (loss) attributable to common stockholders $ 31 $ 69 $ 5 $ 56 Weighted-average common shares outstanding, basic 224,214,030 219,402,647 223,822,565 218,792,850 Earnings (loss) per share, basic $ 0.14 $ 0.32 $ 0.02 $ 0.26 Diluted: Net income (loss) $ 31 $ 71 $ 5 $ 58 Less: net income attributable to participating rights — (2) — (2) Net income (loss) attributable to common stockholders $ 31 $ 69 $ 5 $ 56 Weighted-average common shares outstanding, basic 224,214,030 219,402,647 223,822,565 218,792,850 Effect of dilutive potential common shares 2,389,768 1,023,012 2,380,811 1,430,423 Weighted-average common shares outstanding, diluted 226,603,798 220,425,659 226,203,376 220,223,273 Earnings (loss) per share, diluted $ 0.14 $ 0.31 $ 0.02 $ 0.26 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts and estimated fair values of the Company’s debt are as follows (in millions): June 30, 2024 December 31, 2023 Carrying Estimated Fair Value Carrying Value Estimated Fair Value Secured debt: Pre-delivery credit facility $ 300 $ 304 $ 312 $ 316 Building note 6 6 16 16 Unsecured debt: Affinity card advance purchase of miles 83 81 80 76 PSP promissory notes 66 60 66 57 Total debt $ 455 $ 451 $ 474 $ 465 |
Schedule of Fair Value of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The tables below present disclosures about the fair value of assets and liabilities measured at fair value on a recurring basis on the Company’s condensed consolidated balance sheets (in millions): Fair Value Measurements as of June 30, 2024 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Cash and cash equivalents Cash and cash equivalents $ 658 $ 658 $ — $ — Fair Value Measurements as of December 31, 2023 Description Balance Sheet Classification Total Level 1 Level 2 Level 3 Cash and cash equivalents Cash and cash equivalents $ 609 $ 609 $ — $ — |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Long-term Purchase Commitment | As of June 30, 2024, the Company’s firm aircraft and engine purchase orders consisted of the following: A320neo A321neo Total Aircraft (a) Engines Year Ending Remainder of 2024 — 11 11 1 2025 14 23 37 4 2026 19 24 43 4 2027 14 21 35 3 2028 2 38 40 2 Thereafter — 32 32 — Total 49 149 198 14 __________________ (a) While the schedule presented reflects the contractual delivery dates as of June 30, 2024, the Company has recently experienced delays in the deliveries of Airbus aircraft which may persist in future periods. In August 2024, the Company and Airbus entered into a binding term sheet, subject to execution of customary closing documentation, to, among other things, update the remaining firm aircraft purchase order delivery schedule, which defers previously scheduled firm aircraft delivery dates from 2025 through 2028 to later years. These changes are reflected in the table below and reflect scheduled aircraft received in July 2024: A320neo A321neo Total Aircraft Engines Year Ending Remainder of 2024 — 9 9 1 2025 8 13 21 4 2026 7 15 22 4 2027 8 26 34 3 2028 4 30 34 2 Thereafter — 76 76 — Total 27 169 196 14 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2024 airport segment | |
Accounting Policies [Abstract] | |
Number of airports served | airport | 100 |
Number of reportable segments | segment | 1 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Air traffic liability balance | $ 325 | $ 325 | $ 259 | ||
Air traffic liability recognized as passenger revenue | 89% | ||||
Unearned travel club revenue | 47 | $ 47 | $ 60 | ||
Passenger revenue recognized | $ 10 | $ 10 | $ 18 | $ 20 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Operating Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | $ 973 | $ 967 | $ 1,838 | $ 1,815 |
Total passenger revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 950 | 945 | 1,795 | 1,775 |
Fare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 355 | 361 | 679 | 664 |
Total non-fare passenger revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 595 | 584 | 1,116 | 1,111 |
Service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 266 | 245 | 482 | 462 |
Baggage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 233 | 232 | 437 | 453 |
Seat selection | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 67 | 74 | 131 | 146 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 29 | 33 | 66 | 50 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | $ 23 | $ 22 | $ 43 | $ 40 |
Revenue Recognition - Operating
Revenue Recognition - Operating Revenues by Principal Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | $ 973 | $ 967 | $ 1,838 | $ 1,815 |
Domestic | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 904 | 877 | 1,706 | 1,658 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | $ 69 | $ 90 | $ 132 | $ 157 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Supplier incentives | $ 72 | $ 50 |
Prepaid expenses | 18 | 21 |
Forgivable loans | 17 | 13 |
Income tax and other taxes receivable | 4 | 3 |
Other | 5 | 3 |
Total other current assets | $ 116 | $ 90 |
Financial Derivative Instrume_3
Financial Derivative Instruments and Risk Management - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fuel | |||
Derivative [Line Items] | |||
Cost of swap | $ 0 | $ 0 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | 0 | ||
Unrealized losses from cash flow hedges net of adjustment for dedesignation of fuel hedges, net of deferred tax benefit | 7,000,000 | ||
Interest Rate Swap | Other Noncurrent Assets | |||
Derivative [Line Items] | |||
Derivative, other current assets | $ 0 | $ 0 |
Financial Derivative Instrume_4
Financial Derivative Instruments and Risk Management - Effect of Interest Rate Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest Rate Swap | ||||
Derivatives designated as cash flow hedges | ||||
Amortization of cash flow hedges, net of tax | $ 0 | $ (1) | $ 0 | $ (1) |
Financial Derivative Instrume_5
Financial Derivative Instruments and Risk Management - Net of Tax Impact of the Overall Effectiveness of Derivative Instruments Designated as Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives designated as cash flow hedges | |||||
Unrealized loss from cash flows hedges, net of tax | $ 2 | $ (7) | |||
Total | $ 0 | 3 | $ 0 | $ (4) | |
Interest Rate Swap | |||||
Derivatives designated as cash flow hedges | |||||
Amortization of cash flow hedges, net of tax | 0 | (1) | 0 | (1) | |
Unrealized loss from cash flows hedges, net of tax | $ 0 | $ 2 | $ 0 | $ (5) |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Passenger and other taxes and fees payable | $ 163 | $ 125 |
Salaries, wages and benefits | 107 | 107 |
Station obligations | 73 | 69 |
Aircraft maintenance | 43 | 76 |
Fuel liabilities | 36 | 35 |
Leased aircraft return costs | 22 | 1 |
Other current liabilities | 41 | 48 |
Total other current liabilities | $ 485 | $ 461 |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 455 | $ 455 | $ 474 | |
Less: current maturities of long-term debt, net | (263) | (263) | (251) | |
Less: total debt acquisition costs and other discounts, net | (3) | (3) | (4) | |
Long-term debt, net | $ 189 | 189 | 219 | |
Principal repayments on debt | $ 161 | $ 51 | ||
Term, after interest-only period | 12 months | 12 months | ||
CARES Act Credit Agreement, Warrants | ||||
Debt Instrument [Line Items] | ||||
Warrants to acquire common stock (in shares) | 3,117,940 | 3,117,940 | ||
Exercise price of warrants (in dollars per share) | $ 6.95 | $ 6.95 | ||
Secured Debt | Pre-delivery credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 300 | $ 300 | 312 | |
Amount of unsecured borrowings available | $ 365 | $ 365 | ||
Term extension, maximum | 6 months | 6 months | ||
Secured Debt | Building note | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 6 | $ 6 | 16 | |
Principal repayments on debt | 16 | |||
Secured Debt | Fixed Income Interest Rate | ||||
Debt Instrument [Line Items] | ||||
Unsecured low interest loan amount | $ 6 | $ 6 | ||
Interest rate | 6.79% | 6.79% | ||
Unsecured Debt | Affinity card advance purchase of miles | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 66 | $ 66 | 66 | |
Amount of unsecured borrowings available | 200 | 200 | ||
Unsecured Debt | PSP promissory notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 83 | $ 83 | $ 80 | |
Interest rate | 1% | 1% | ||
Interest rate period | 5 years | |||
Debt instrument, variable interest rate | 2% | |||
Unsecured Debt | PSP1 Promissory Note | ||||
Debt Instrument [Line Items] | ||||
Loan term | 10 years |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Interest paid | $ 17 | $ 12 | |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding, amount | $ 0 | $ 0 |
Debt - Schedule of Maturity (De
Debt - Schedule of Maturity (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2024 | $ 141 |
2025 | 159 |
2026 | 0 |
2027 | 0 |
2028 | 69 |
Thereafter | 86 |
Total debt principal payments | $ 455 |
Operating Leases - Aircraft (De
Operating Leases - Aircraft (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) lease transaction aircraft | Jun. 30, 2023 USD ($) transaction aircraft lease | Jun. 30, 2024 USD ($) lease transaction engine aircraft | Jun. 30, 2023 USD ($) lease aircraft transaction | |
Lessee, Lease, Description [Line Items] | ||||
Gains recognized on sale-leaseback transactions | $ | $ 148 | $ 57 | ||
Aircraft | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of leases | 148 | 148 | ||
Aircraft | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 8 months | 8 months | ||
Aircraft | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 12 years | 12 years | ||
Aircraft Engine | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of leases | 33 | 33 | ||
Number of engines dependent on usage-based metrics | engine | 10 | |||
Aircraft Engine | Aircraft Sale Leaseback | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of sale-leaseback transactions | transaction | 2 | 1 | 2 | 2 |
Aircraft Engine | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 month | 1 month | ||
Aircraft Engine | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 12 years | 12 years | ||
Aircraft and Aircraft Engines | ||||
Lessee, Lease, Description [Line Items] | ||||
Gains recognized on sale-leaseback transactions | $ | $ 77 | $ 17 | $ 148 | $ 57 |
A320neo | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of leases in period | 0 | 2 | 0 | 5 |
A320neo | Aircraft | Aircraft Sale Leaseback | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of sale-leaseback transactions | aircraft | 6 | 1 | 12 | 4 |
Operating Leases - Aircraft Ren
Operating Leases - Aircraft Rent Expense and Maintenance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||||
Aircraft rent expense (benefit) | $ (147) | $ (148) | $ (306) | $ (279) | |
Supplemental rent expense for maintenance-related reserves deemed non-recoverable | (7) | (2) | (7) | (2) | |
Supplemental rent expense related to probable lease return condition obligations | 1 | $ 22 | 14 | $ 24 | |
Leased aircraft return cost liability | 31 | 31 | $ 26 | ||
Disbursement previously paid | $ 104 | $ 104 |
Operating Leases - Lease Extens
Operating Leases - Lease Extension (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | ||||
Aircraft rent expense (benefit) | $ (147) | $ (148) | $ (306) | $ (279) |
Aircraft | ||||
Lessee, Lease, Description [Line Items] | ||||
Aircraft rent expense (benefit) | $ 11 | $ 14 | $ 18 |
Operating Leases - Airport Faci
Operating Leases - Airport Facilities (Details) | 6 Months Ended |
Jun. 30, 2024 airport | |
Lessee, Lease, Description [Line Items] | |
Number of airports served | 100 |
Minimum | Airport Facility | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 month |
Maximum | Airport Facility | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 10 years |
Operating Leases - Other Ground
Operating Leases - Other Ground Property and Equipment (Details) - Other Ground Property And Equipment | Jun. 30, 2024 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 8 years |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 155 | $ 131 | $ 302 | $ 258 |
Variable lease cost | 94 | 70 | 173 | 144 |
Total lease costs | $ 249 | $ 201 | $ 475 | $ 402 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | ||||
Cash paid for amounts included in measurement of lease liabilities | $ 155 | $ 130 | $ 302 | $ 257 |
Aircraft and Aircraft Engines | ||||
Lessee, Lease, Description [Line Items] | ||||
Acquired aircraft and engines through operating leases | $ 571 | $ 107 | $ 826 | $ 338 |
Stock-Based Compensation - (Det
Stock-Based Compensation - (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 5 | $ 3 | $ 9 | $ 7 |
Options granted (in shares) | 0 | |||
Stock option exercises (in shares) | 758,217 | |||
Weighted average stock price (in dollars per share) | $ 1.25 | |||
Weighted average exercise price of outstanding options (in dollars per share) | $ 5.26 | $ 5.26 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units issued (in shares) | 1,409,000 | |||
Weighted average grant date fair value (in dollars per share) | $ 5.53 | |||
Vested (in shares) | 990,525 | |||
Shares withheld to cover employee taxes on vested restricted stock units (in shares) | 275,866 | |||
Weighted average grant date fair value, for vested shares (in dollars per share) | $ 11.79 | |||
Weighted average grant date fair value, withheld to cover employee taxes (in dollars per share) | $ 12.68 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stockholders' Equity (Details) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock authorized for issuance (in shares) | 750,000,000 | 750,000,000 |
Preferred stock authorized for issuance (in shares) | 10,000,000 | 10,000,000 |
Common stock, stated par (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Nonvoting Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock authorized for issuance (in shares) | 150,000,000 | 150,000,000 |
Common stock, stated par (in dollars per share) | $ 0.001 | $ 0.001 |
Commitments and Contingencies -
Commitments and Contingencies - Aircraft and Engine Orders (Details) | 6 Months Ended |
Jun. 30, 2024 aircraft engine | |
Air Transportation Equipment | |
Long-term Purchase Commitment [Line Items] | |
Remainder of 2024 | 11 |
2025 | 37 |
2026 | 43 |
2027 | 35 |
2028 | 40 |
Thereafter | 32 |
Total | 198 |
Aircraft Engine | |
Long-term Purchase Commitment [Line Items] | |
Remainder of 2024 | engine | 1 |
2025 | engine | 4 |
2026 | engine | 4 |
2027 | engine | 3 |
2028 | engine | 2 |
Thereafter | engine | 0 |
Total | engine | 14 |
A320neo | Air Transportation Equipment | |
Long-term Purchase Commitment [Line Items] | |
Remainder of 2024 | 0 |
2025 | 14 |
2026 | 19 |
2027 | 14 |
2028 | 2 |
Thereafter | 0 |
Total | 49 |
A321neo | Air Transportation Equipment | |
Long-term Purchase Commitment [Line Items] | |
Remainder of 2024 | 11 |
2025 | 23 |
2026 | 24 |
2027 | 21 |
2028 | 38 |
Thereafter | 32 |
Total | 149 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 USD ($) aircraft employeeGroup | Jun. 30, 2024 USD ($) employeeGroup aircraft engine | Dec. 31, 2023 USD ($) | |
Long-term Purchase Commitment [Line Items] | |||
Costs capitalized | $ | $ 88 | $ 88 | $ 78 |
Litigation settlement, gain | $ | $ 50 | ||
Number of union-represented employee groups | employeeGroup | 7 | 7 | |
Amount of employees represented by unions | 88% | ||
Accrued liabilities for health care claims | $ | $ 6 | $ 6 | $ 5 |
Aircraft Engine | |||
Long-term Purchase Commitment [Line Items] | |||
Number of aircraft agreed to purchase | engine | 14 | ||
Air Transportation Equipment | |||
Long-term Purchase Commitment [Line Items] | |||
Number of aircraft agreed to purchase | 198 | ||
Air Transportation Equipment | A320neo | |||
Long-term Purchase Commitment [Line Items] | |||
Number of aircraft agreed to purchase | 49 | ||
Number of aircraft eligible for conversion | 18 | 18 | |
Air Transportation Equipment | A321neo | |||
Long-term Purchase Commitment [Line Items] | |||
Number of aircraft agreed to purchase | 149 |
Commitment and Contingencies -
Commitment and Contingencies - Contractual Obligation, Fiscal Year Maturity (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2024 | $ 668 |
2025 | 2,224 |
2026 | 2,477 |
2027 | 2,066 |
2028 | 2,467 |
Thereafter | 2,002 |
Purchase obligation total | $ 11,904 |
Commitments and Contingencies_3
Commitments and Contingencies - Collective Bargaining Agreements (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 88% |
Pilots | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 26% |
Flight Attendants | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 53% |
Aircraft Technicians | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 6% |
Aircraft Appearance Agents | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 1% |
Dispatchers | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 1% |
Material Specialists | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 1% |
Maintenance Controllers | |
Multiemployer Plan [Line Items] | |
Amount of employees represented by unions | 1% |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic: | ||||||
Net income | $ 31 | $ (26) | $ 71 | $ (13) | $ 5 | $ 58 |
Less: net income attributable to participating rights | 0 | (2) | 0 | (2) | ||
Net income (loss) attributable to common stockholders | $ 31 | $ 69 | $ 5 | $ 56 | ||
Weighted average common shares outstanding, basic (in shares) | 224,214,030 | 219,402,647 | 223,822,565 | 218,792,850 | ||
Net earnings (loss) per share, basic (in dollars per share) | $ 0.14 | $ 0.32 | $ 0.02 | $ 0.26 | ||
Diluted: | ||||||
Less: net income attributable to participating rights | $ 0 | $ (2) | $ 0 | $ (2) | ||
Net income (loss) attributable to common stockholders | $ 31 | $ 69 | $ 5 | $ 56 | ||
Effect of dilutive potential common shares (in shares) | 2,389,768 | 1,023,012 | 2,380,811 | 1,430,423 | ||
Weighted average common shares outstanding, diluted (in shares) | 226,603,798 | 220,425,659 | 226,203,376 | 220,223,273 | ||
Diluted (in dollars per share) | $ 0.14 | $ 0.31 | $ 0.02 | $ 0.26 | ||
Shares excluded from the computation of diluted shares (in shares) | 5,007,745 | 2,886,151 | 5,154,621 | 2,264,024 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 3.10% | 19.30% | 37.50% | 18.30% |
Deferred tax assets, valuation allowance | $ 35 | $ 35 | ||
Valuation allowance, deferred tax asset, increase (decrease) | $ (7) | $ (2) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Restricted cash (less than) | $ 1 | $ 1 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of the Company’s Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | $ 455 | $ 474 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 451 | 465 |
Pre-delivery credit facility | Carrying Value | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 300 | 312 |
Pre-delivery credit facility | Estimated Fair Value | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 304 | 316 |
Building note | Carrying Value | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 6 | 16 |
Building note | Estimated Fair Value | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 6 | 16 |
Affinity card advance purchase of miles | Carrying Value | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 83 | 80 |
Affinity card advance purchase of miles | Estimated Fair Value | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 81 | 76 |
PSP promissory notes | Carrying Value | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | 66 | 66 |
PSP promissory notes | Estimated Fair Value | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, fair value | $ 60 | $ 57 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 658 | $ 609 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 658 | 609 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Related Parties (Details)
Related Parties (Details) - Related Party $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) director | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) director | Jun. 30, 2023 USD ($) | |
Indigo Partners | ||||
Related Party Transaction [Line Items] | ||||
Management fees, expense reimbursements, and director compensation (less than) | $ | $ 1 | $ 1 | $ 1 | $ 1 |
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. | ||||
Related Party Transaction [Line Items] | ||||
Number of company directors | 2 | 2 | ||
Number of alternate company directors | 1 | 1 |
Subsequent Events (Details)
Subsequent Events (Details) | 6 Months Ended | |
Aug. 08, 2024 aircraft engine | Jun. 30, 2024 aircraft engine | |
Air Transportation Equipment | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | 11 | |
2025 | 37 | |
2026 | 43 | |
2027 | 35 | |
2028 | 40 | |
Thereafter | 32 | |
Number of aircraft agreed to purchase | 198 | |
Air Transportation Equipment | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | 9 | |
2025 | 21 | |
2026 | 22 | |
2027 | 34 | |
2028 | 34 | |
Thereafter | 76 | |
Number of aircraft agreed to purchase | 196 | |
Aircraft Engine | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | engine | 1 | |
2025 | engine | 4 | |
2026 | engine | 4 | |
2027 | engine | 3 | |
2028 | engine | 2 | |
Thereafter | engine | 0 | |
Number of aircraft agreed to purchase | engine | 14 | |
Aircraft Engine | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | engine | 1 | |
2025 | engine | 4 | |
2026 | engine | 4 | |
2027 | engine | 3 | |
2028 | engine | 2 | |
Thereafter | engine | 0 | |
Number of aircraft agreed to purchase | engine | 14 | |
A320neo | Air Transportation Equipment | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | 0 | |
2025 | 14 | |
2026 | 19 | |
2027 | 14 | |
2028 | 2 | |
Thereafter | 0 | |
Number of aircraft agreed to purchase | 49 | |
A320neo | Air Transportation Equipment | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | 0 | |
2025 | 8 | |
2026 | 7 | |
2027 | 8 | |
2028 | 4 | |
Thereafter | 0 | |
Number of aircraft agreed to purchase | 27 | |
A321neo | Air Transportation Equipment | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | 11 | |
2025 | 23 | |
2026 | 24 | |
2027 | 21 | |
2028 | 38 | |
Thereafter | 32 | |
Number of aircraft agreed to purchase | 149 | |
A321neo | Air Transportation Equipment | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Remainder of 2024 | 9 | |
2025 | 13 | |
2026 | 15 | |
2027 | 26 | |
2028 | 30 | |
Thereafter | 76 | |
Number of aircraft agreed to purchase | 169 |