Frontier Airlines,
Disappointed By Airbus A321XLR, Drops Model
Christine
Boynton August 08, 2024
Depiction
of Frontier Airlines Airbus A321XLR
Credit: Airbus
Frontier
Airlines dropped the Airbus A321XLR from its fleet plan because the aircraft’s
performance fell short of the carrier’s expectations.
“The
operating performance and range of the XLR ended up not being what we had
expected,” the airline told Aviation Week after disclosing the move in a second
quarter (Q2) filing. “If that changes in the future, we will re-evaluate
opportunities with the XLR.”
Frontier
did not elaborate on its specific requirements.
Previously
the Denver-based ULCC had lauded the longer-range narrowbodies as providing
opportunity for service to Hawaii and potential international expansion, including to Europe, and deeper
into South America. Flying transatlantic is “definitely in
consideration,” CEO Barry Biffle told the Routes World conference in October
2022.
But
the carrier in June “provided notice to Airbus as permitted in the Airbus
Purchase Agreements that it will not purchase any A321XLR aircraft,” it
detailed, five years after announcing its intent to convert 18 A320neo family
aircraft on order to A321XLRs. Frontier selected Pratt & Whitney’s
Geared Turbofan (GTF) engine for the variant in January 2021.
Only
the CFM Leap 1A-powered version of the XLR has received its type
certification from the European Union Aviation Safety
Agency (EASA). Certification of the GTF-powered version is slated for later in
2024. During the EASA certification process, the XLR’s new rear center fuel
tank—enabling an extra 700 nm of range—prompted concern from regulators around
its fire protection. Modification requirements put forward by the regulator forced Airbus to minimize
impacts to the aircraft’s max range by saving weight elsewhere.
Pratt
& Whitney deferred to Airbus for aircraft range questions; Airbus did not
immediately respond to requests for comment.
Frontier’s
declination of the XLR conversion option comes as it also defers Airbus
aircraft with original delivery dates in 2025-2028 out to 2029-2031, moderating
growth over the next several years, and smoothing a capacity stream Biffle
described as having gotten “very lumpy.” The ULCC projects capacity to grow by
4-6% in the third quarter (Q3), and 5-7% for the full year.
For
its remaining orderbook of 187 aircraft Frontier now expects to receive nine
A321neos in the second half of 2024; eight A320neos and 13 A321neos in 2025; 15
A321neos and seven A320neos in 2026; 26 A321neos and eight A320neos in 2027; 30
A321neos and four A320neos in 2028; and another 76 A321neos thereafter. A prior
delivery schedule from March had expected 42 deliveries in 2025, 41 in 2026, 42
in 2027, 40 in 2028, and 66 thereafter.
Frontier
ended the quarter with 148 aircraft in the fleet, a mix of 82 A320neos, eight
A320ceos, 37 A321neos and 21 A321ceos. In Q2, it reported operating revenues of
$973 million, up 1% year-over-year, on a 6.8% uptick in operating expenses.
Frontier’s Q2 net income was $31 million, compared to net income of $71 million
in Q2 2023. Looking ahead, Frontier projects an adjusted pre-tax margin of
negative 3% to negative 6% in Q3, forecasting an adjusted pre-tax margin of
negative 1.5% to positive 1.5% for the full year.
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