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NEW YORK - Frontier Group Holdings , Inc. (NASDAQ:ULCC), parent company of Frontier Airlines, reported a wider-than-expected second-quarter loss on Tuesday as the ultra-low-cost carrier faced significant weather disruptions and air traffic control delays during the period.
The company posted a net loss of $70 million, or -$0.31 per share, for the second quarter, missing analyst expectations of -$0.28 per share. Revenue came in at $929 million, below the consensus estimate of $943.78 million and down 5% compared to the same period last year. Shares of Frontier dipped nearly 1% following the announcement.
"Our second quarter results were within our guidance range, overcoming significant weather and extensive air traffic control delays in late May and June," said Barry Biffle, Chief Executive Officer of Frontier Airlines.
The airline’s revenue per available seat mile (RASM) was 9.01 cents, representing a 2% decrease from the prior year quarter, though on a stage-adjusted basis it showed a slight improvement. Total (EPA:TTEF) operating expenses rose to $1 billion, with cost per available seat mile (CASM) increasing 8% to 9.73 cents compared to the same quarter in 2024.
Frontier’s guidance for the third quarter also disappointed investors, with the company projecting a loss between -$0.42 and -$0.26 per share, well below the analyst consensus of $0.19 profit.
The airline noted that domestic travel demand was disrupted in April but stabilized during the quarter. Despite challenges, the company maintained a strong liquidity position of $766 million at quarter-end and continued to modernize its fleet with three new A321neo aircraft deliveries.
"The domestic supply and demand balance is anticipated to improve sequentially over the next several months in Frontier markets, which, alongside our commercial initiatives, is expected to support mid-to-high single-digit RASM growth in the third quarter on a stage-adjusted basis and provide a solid foundation for profitability in 2026," Biffle added.
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