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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