Frontier Group Holdings (ULCC) Company Report

Frontier Group is implementing a strategic plan to achieve sustained profitability, including right-sizing its fleet by taking 24 aircraft out in a deal with AerCap and deferring 69 Airbus aircraft to 2031-2033, which will reduce the long-term growth profile to 8%-10%.
The company expects a +10% improvement in stage length adjusted RASM year-over-year in Q1, driven by constructive supply-demand dynamics and strategic pricing initiatives like the basic fare plus bundle strategy and NDC implementation.
Cost reduction efforts include a nearly $100 million reduction in rent due to fleet changes and an anticipated additional $100 million from efficiencies and network selection, alongside a projected $170 million-$210 million drop in PDP balance by end of 2026.
Operational improvements are focused on increasing aircraft utilization from less than nine hours in Q4 to 11.5 hours over the next 18-24 months, reducing cancellations, and improving on-time performance.
Loyalty program cash flows were up 30% year-over-year in Q4, and the company plans to introduce first-class seating by the end of this year and Wi-Fi by the end of 2027.

3 hours ago

Transcript

Frontier Group Discusses Q1 2026 Outlook and Strategic Initiatives

ULCC

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Frontier Group anticipates a 10%+ improvement in stage length adjusted RASM year-over-year for Q1 2026, with March capacity expected to be up 8% and unit revenues higher than 10%.
The company is right-sizing its fleet by taking 24 aircraft out in April, May, and early June 2026, and deferring 69 Airbus aircraft from 2027-2029 to 2031-2033, aligning with a new long-term growth profile of 8%-10%.
Management expects to achieve significant cost reductions, including a $100 million reduction in its rent bill and an additional $60 million-$70 million in direct cost inefficiency by increasing aircraft utilization to 11.5 hours over the next 18-24 months.
Revenue initiatives, such as the introduction of NDC (New Distribution Capability) with online travel agents, are leading to improved conversion and attachment rates, while loyalty program cash flows in Q4 2025 were up 30% year-over-year.
Frontier plans to enhance its product offering by adding first-class seating across its fleet by the end of 2026 and installing Wi-Fi by the end of 2027.

3 hours ago

Transcript

Frontier Group Holdings Outlines Strategic Fleet and Revenue Initiatives

ULCC

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Frontier Group Holdings anticipates a 10+% improvement in stage length adjusted RASM year-over-year for Q1 2026, with March showing even stronger performance, attributed to constructive supply-demand dynamics and strategic pricing changes.
The company is implementing significant fleet adjustments, including removing 24 aircraft via a deal with AerCap by early June 2026 and deferring 69 Airbus aircraft deliveries from 2027-2029 to 2031-2033. These actions support a revised longer-term growth profile of 8%-10% and are expected to reduce the rent bill by approximately $100 million and other inefficiencies by $60 million-$70 million.
The PDP (Pre-Delivery Payment) balance is projected to decrease by $170 million-$210 million between the end of 2025 and the end of 2026 due to aircraft deferrals.
Loyalty program cash flows were up 30% year-over-year in Q4 , with plans to introduce a first-class seat later in 2026 and Wi-Fi by the end of 2027 to further enhance revenue and customer retention.

4 hours ago

Transcript

Frontier Group Holdings Outlines Strategic Plan for Profitability and Fleet Rightsizing

ULCC

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

The new CEO has a clear mandate to return Frontier to sustained profitability through four strategic priorities: rightsizing the fleet, strengthening cost discipline, improving operational reliability, and driving customer loyalty.
Frontier will terminate 24 aircraft leases early in Q2 2026 and has revised its Airbus order for a long-term growth rate of approximately 10%, aiming to end 2026 and 2027 with a stable fleet of 176 aircraft.
The company targets $200 million in annual run rate cost savings by 2027, including approximately $90 million from early lease terminations, and is experiencing over 10% year-over-year RASM improvement in Q1 2026.
The primary financial goal is to become a free cash flow generation business and achieve sustained profitability in the coming years.

6 days ago

Transcript

Frontier Group Holdings Announces Strategic Plan and Fleet Rightsizing Initiatives

ULCC

CEO Change

Guidance Update

New Projects/Investments

Frontier Group Holdings' new CEO, Jimmy Dempsey, outlined a strategic plan for the company, focusing on four key priorities: rightsizing the fleet, strengthening cost discipline, reducing cancellations and improving on-time performance, and driving customer loyalty.
The company entered a non-binding agreement with AerCap for the early termination of 24 aircraft leases in Q2 2026, which is expected to generate approximately $90 million in annual rent savings and contribute to a target of $200 million in annual run rate cost savings by 2027.
A revised agreement with Airbus supports a more measured and sustainable long-term growth rate of approximately 10%, with the company expecting to end 2026 and 2027 with the same fleet size (176 aircraft) as it began 2026.
Management noted a meaningful year-over-year improvement in RASM, trending above 10% for early bookings in March, April, and May, and aims to return the airline to sustained profitability and free cash flow generation.

6 days ago

Transcript

Frontier Group Holdings Announces Strategic Plan for Profitability and Fleet Rightsizing

ULCC

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Jimmy Dempsey has assumed the role of CEO with a clear mandate to return Frontier Group Holdings to sustained profitability.
The company is rightsizing its fleet by entering a non-binding agreement to terminate 24 aircraft leases in Q2 2026 and revising its Airbus delivery profile to support a sustainable long-term growth rate of approximately 10%.
Frontier is targeting $200 million of annual run rate cost savings by 2027, including approximately $90 million from the early termination of aircraft leases.
Management is focused on improving operational reliability and expects RASM improvement above 10% in Q1 2026, with a long-term goal of returning to free cash flow generation and sustained profitability.

6 days ago

Transcript

Frontier Announces Fleet Optimization Transaction with AerCap

ULCC

New Projects/Investments

Frontier Group Holdings (ULCC) has entered into a non-binding agreement with AerCap Holdings N.V. (AER) for fleet optimization.
The agreement involves the early return of 24 A320neo aircraft to AerCap, with completion expected during the second quarter of 2026.
In exchange, AerCap will facilitate 10 future sale-leaseback transactions for aircraft deliveries scheduled for 2028 and 2029.
This initiative is part of Frontier's new strategy to improve productivity and strengthen its competitive position through a disciplined right-sizing of its fleet.

6 days ago

Press Release

Frontier Group Holdings Reports Fourth Quarter and Full Year 2025 Financial Results

ULCC

Earnings

Guidance Update

New Projects/Investments

Frontier Group Holdings reported total revenue of $997 million and net income of $53 million for the fourth quarter of 2025, resulting in diluted earnings per share of $0.23. For the full year 2025, the company reported total operating revenues of $3,724 million and a net loss of $137 million, with a diluted loss per share of $0.60.
Operational highlights for the fourth quarter of 2025 included a Revenue per Available Seat Mile (RASM) of 10.17 cents and a Cost per Available Seat Mile (CASM) of 9.67 cents. The company's total liquidity at year-end 2025 was $874 million.
The company announced strategic fleet adjustments, including a non-binding agreement with AerCap for the early return of 24 A320neo aircraft in the second quarter of 2026 and a non-binding framework agreement with Airbus to defer 69 A320neo family aircraft deliveries from 2027-2030 to 2031-2033. These modifications are targeted to generate annual run-rate cost savings of approximately $200 million by 2027 and moderate long-term annual capacity growth to about 10 percent.
For the first quarter of 2026, Frontier expects an adjusted diluted loss per share between $(0.26) and $(0.44), and for the full year 2026, adjusted diluted earnings per share are projected to be between $(0.40) and $0.50, with capacity growth of approximately 10 percent.

6 days ago

Press Release

Frontier Group Holdings, Inc. Announces Q4 and Full Year 2025 Financial Results

ULCC

Earnings

Guidance Update

Frontier Group Holdings, Inc. reported Q4 2025 total revenue of $997 million and net income of $53 million, with $0.23 per diluted share.
For the full year 2025, the company recorded total operating revenues of $3,724 million and a net loss of $(137) million, or $(0.60) per diluted share.
The company announced a non-binding agreement for the early return of 24 A320neo aircraft in Q2 2026 and a deferral of 69 A320neo family aircraft deliveries, with these fleet modifications targeted to generate annual run-rate cost savings of approximately $200 million by 2027.
Total liquidity for Frontier Group Holdings, Inc. was $874 million as of December 31, 2025.
For Q1 2026, the company expects adjusted diluted EPS to be between $(0.26) and $(0.44), and for the full year 2026, adjusted diluted EPS is guided to be between $(0.40) and $0.50.

6 days ago

8-K

Volaris Reports January 2026 Traffic Results

ULCC

Demand Weakening

In January 2026, Volaris transported 2.7 million passengers.
ASM capacity increased by 4.3%, while RPMs grew by 2.1% year-over-year.
The consolidated load factor decreased by 1.8 percentage points year-over-year to 84.8%.
Domestic RPMs declined 1.1%, while international RPMs increased 6.7%.
CEO Enrique Beltranena stated that traffic trends were consistent with the fourth quarter, with international capacity maturing and sequential improvement in VFR demand, and that the company will remain disciplined in capacity management throughout 2026.