Missed the webinar? Here are Investing.com’s top 10 stock picks for 2026
DENVER - Frontier Group Holdings, Inc. (NASDAQ:ULCC), parent company of Frontier Airlines, reported a third-quarter loss that was slightly better than analysts expected, while revenue fell short of estimates as the ultra-low-cost carrier navigated a challenging pricing environment.
The airline posted a third-quarter loss of $0.34 per share, beating analyst expectations of a $0.37 per share loss. Revenue came in at $886 million, below the consensus estimate of $901.89 million and down from $935 million in the same quarter last year. The company’s shares remained flat following the announcement.
Frontier’s total revenue declined amid a 4% reduction in capacity compared to the same period last year. Revenue per available seat mile (RASM) was 9.14 cents, while stage-adjusted RASM increased 2% YoY to 8.76 cents. The airline reported a load factor of 80.7%, approximately three percentage points higher than the third quarter of 2024.
"Our third-quarter results were in line with expectations as we navigated a competitive pricing environment," said Barry Biffle, Chief Executive Officer. "We expect ongoing competitive capacity reductions to continue through 2026, supporting a more balanced supply environment and improved revenue performance."
For the fourth quarter, Frontier provided guidance for earnings per share between $0.04 and $0.20, compared to analyst expectations of $0.11. The midpoint of this guidance ($0.12) is slightly above the consensus estimate.
The company ended the quarter with $691 million in total liquidity and recently issued a $105 million note secured by spare parts and tooling related to its A320 family aircraft.
Frontier continues to modernize its fleet, with 84% now consisting of fuel-efficient A320neo family aircraft. The airline generated 105 available seat miles per gallon in the third quarter, a 2% improvement YoY, maintaining its position as "America’s Greenest Airline" based on fuel efficiency.
The company also announced 42 new routes during the quarter, expanding service in major U.S. metros and adding new international destinations in Guatemala, Honduras, Mexico, Turks and Caicos, and the Bahamas.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.