Provide an analysis of the horizontal, common size, and ratio data. Delta and Frontier Air Line and Industry Averages. Examine recommendations of other investment websites (buy/sell/hold). Use the references below too!
1A: For Section 3, the rubric specifically asks for analysis of three types of financial data: Delta and Frontier Air Line
· Horizontal analysis (e.g., year-over-year $ and % changes)
· Common-size (vertical) analysis (e.g., expenses or profit shown as a % of sales)
· Financial ratios (e.g., current ratio, profit margin)
1B. C ompare Delta to Frontier using these metrics directly and, ideally, mention how they stack up to industry averages if we can find them.
1C: A nalyze the numbers from the tables and show what they mean by investing. We need to add those side-by-side comparisons and calculated insights to align with the rubric.
Table 1 Delta:
a.
FINANCIAL STATEMENT LINE ITEM
$
% CHANGE
Operating Revenue 2024-2025
$13,748M to $14,040M
2.1%
Net Income 2024-2025
$37M to $240M
548.6%
Fuel Expense 2024-2025
$2,598M to $2,410M
-7.2%
b.
FINANCIAL STATEMENT LINE ITEM
$
% of SALES
Fuel Expense as % of Revenue (2025)
$2,410M / $14,040M
17.2%
Net Income as % of Revenue (2025)
$240M / $14,040M
1.7%
Operating Expense as % of Revenue (2025)
$13,471M / $14,040M
95.9%
c.
RATIO
$
RESULT
Current Ratio
$11,236M / $29,699M
0.38
Debt-to-Equity Ratio
$15,823M / $15,447M
1.02
Net Profit Margin
$240M / $14,040M
1.7%
Table 2 Frontier:
a.
FINANCIAL STATEMENT LINE ITEM
$
% CHANGE
Operating Revenue 2024-2025
$865M to $912M
5.4%
Net Income 2024-2025
-$26M to -$43M
-65.4%
Fuel Expense 2024-2025
$263M to $238M
-9.5%
b.
FINANCIAL STATEMENT LINE ITEM
$
% of SALES
Fuel Expense as % of Revenue (2025)
$238M / $912M
26.1%
Net Income as % of Revenue (2025)
-$43M / $912M
-4.7%
Operating Expense as % of Revenue (2025)
$958M / $912M
105.0%
c.
RATIO
$
RESULT
Current Ratio
$889M / [estimated current liabilities]
est. <1.0
Net Profit Margin
-$43M / $912M
-4.7%
Operating Margin
-$46M / $912M
-5.0%
References:
Delta Air Lines. (2025). Delta Air Lines announces March quarter 2025 financial results [PDF]. https://investor.delta.com
Frontier Airlines. (2025). Frontier Airlines reports first quarter 2025 financial results [PDF]. https://ir.flyfrontier.com
Reuters. (2025, May 21). Airline CEOs say U.S. air traffic control system is failing Americans. https://www.reuters.com
Williams, J., Bettner, M., & Smith, K. (2023). Financial & managerial accounting (eBook with Connect access). McGraw-Hill Education.
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