Frontier Airlines Delivers Record Second Quarter 2026 Revenue of $1.3 billion, up 38 percent Year-over-Year and Significantly Beats Wall Street Estimates

DENVER, July 29, 2026 /PRNewswire/ -- Frontier Group Holdings, Inc. (Nasdaq: ULCC), parent company of Frontier Airlines, Inc., today reported financial results for the second quarter of 2026 and issued guidance for the third and fourth quarters of 2026, and select guidance for full-year 2026.

Second Quarter and Year-to-Date Select Financial Highlights

The following tables summarize select financial results for the three and six months ended June 30, 2026 and 2025, including both GAAP and adjusted (non-GAAP) metrics. Refer to "Reconciliations of Non-GAAP Financial Information" in the appendix of this release.

Highlights:

• Delivered all-time record total revenue of approximately $1.3 billion, up 38 percent versus the corresponding 2025 quarter, reflecting strong demand and continued execution of the Company's commercial strategy

• Exceeded RASM guidance, with RASM increasing 28 percent versus the corresponding 2025 quarter to 11.52 cents on 8 percent higher capacity

• Maintained cost discipline while executing fleet simplification actions, with cost per available seat mile ("CASM") of 12.39 cents, including fuel expense at an average cost of $4.17 per gallon, and adjusted (non-GAAP) CASM of 7.42 cents, stage-adjusted to 1,000 miles and excluding fuel and a non-recurring charge related to the early lease termination of 24 aircraft (the "Early Return Agreement")

• Reported an adjusted (non-GAAP) net loss of $22 million, or $0.10 per share, excluding the Early Return Agreement, significantly better than guidance

• Ended the second quarter with $1.16 billion of total liquidity, above the guidance range and equal to 27 percent of trailing 12-month adjusted (non-GAAP) revenue

• Strengthened a key ancillary revenue platform by extending and enhancing the co-branded credit card partnership with Barclays through 2037, improving expected program economics

• Announced plans to launch Starlink onboard Wi-Fi in 2027, supporting the Company's ongoing efforts to enhance the customer's onboard experience

• Generated 106 available seat miles ("ASMs") per gallon in the second quarter of 2026, a fuel efficiency advantage of over 40 percent compared to the other major U.S. carriers1

• Expanded the network across key leisure and business markets, including Dallas-Fort Worth, Newark, Santa Ana, Fort Lauderdale, Washington Dulles, Nashville, Las Vegas, Boise and Oakland

"Our transformation plan is delivering meaningful results, reflecting our team's relentless focus on execution. The strength of our second quarter revenue performance is a testament to the momentum we are building through our commercial initiatives, product investments and loyalty enhancements, as well as the continued resilience of the demand environment," said Jimmy Dempsey, President and Chief Executive Officer. "As a result of this progress, we expect RASM to increase over 20 percent in the third quarter year-over-year, which would be our third consecutive quarter of double-digit growth. We are pleased to see macro conditions remain strong and I'm confident we have the right plan in place to restore sustainable earnings growth for the long term."

Revenue and Cost Performance

Revenue was approximately $1.3 billion, an all-time Company record, driven by strong travel demand, favorable competitive capacity and the continued progression of the Company's revenue management initiatives. ASMs were 11.1 billion, 8 percent higher compared to the corresponding 2025 quarter on an average stage length of 897 miles.

RASM increased 28 percent over the corresponding 2025 quarter to 11.52 cents, significantly above the guidance range. Flown load factor was approximately one percentage point higher at 80.3 percent.

Total adjusted operating expenses were approximately $1.3 billion in the second quarter of 2026, or 11.77 cents per ASM, including $436 million of fuel expense at an average cost of $4.17 per gallon. Total adjusted (non-GAAP) operating expenses - excluding fuel and the Early Return Agreement - were $870 million, or 7.42 cents per ASM, stage-adjusted to 1,000 miles. 

Liquidity

Total liquidity as of June 30, 2026 was $1.16 billion, consisting of unrestricted cash and cash equivalents and availability from the Company's revolving credit facility, representing 27 percent of trailing 12-month adjusted (non-GAAP) revenue.

Fleet

As of June 30, 2026, Frontier had a fleet of 165 Airbus single-aisle aircraft, as scheduled below, all financed through operating leases that expire between 2027 and 2038.

Frontier took delivery of two A320neo aircraft and four A321neo aircraft during the second quarter of 2026, and returned 24 A320neo aircraft pursuant to the Early Return Agreement. The delivery of one A321neo aircraft, originally scheduled for the second quarter of 2026, was postponed by Airbus to the third quarter. The Company expects to take delivery of six A320 family aircraft in the third quarter 2026, including five A321neo aircraft and one A320neo aircraft.

Frontier is "America's Greenest Airline," producing 106 ASMs per gallon in the second quarter of 2026 and delivering a fuel-efficiency advantage of more than 40 percent versus the other major U.S. carriers1, as measured by available seat miles per fuel gallon consumed.

Starlink

On July 14, 2026, Frontier announced plans to transform its onboard experience by introducing Starlink, the fastest Wi-Fi in the sky. Engineered by SpaceX, Starlink delivers an unparalleled broadband experience in flight, with high-speed, low-latency Wi-Fi capable of HD streaming, online gaming, productivity and more.

The Company plans to launch its first Starlink-equipped aircraft by early 2027 and will be the first US airline to offer passengers access to Starlink's high-speed internet through a new system managed directly by Starlink. Beyond enhancing the customer experience, Starlink will provide gate-to-gate connectivity for Frontier's pilots, flight attendants, maintenance teams, and ground operations, enabling improved operational performance and more seamless customer service.

Forward Guidance

The guidance provided below is based on the Company's current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in the Company's reports on file with the SEC. Frontier undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law. Further, this guidance excludes special items and the reconciliation of non-GAAP measures to the comparable GAAP measures because such amounts cannot be determined at this time.

Adjusted (non-GAAP) diluted earnings per share guidance for the third and fourth quarters of 2026, as noted below, reflects continued progress across key commercial initiatives, underpinned by favorable competitive capacity and strong travel demand, while elevated fuel prices continue to be a cost headwind. Third quarter capacity is expected to increase 17 to 18 percent versus the corresponding 2025 quarter, partially a function of lapping unproductive aircraft in the corresponding 2025 quarter, or 2 to 3 percent sequentially. Fourth quarter capacity is expected to increase approximately 7 percent versus the corresponding 2025 quarter.

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Conference Call

The Company will host a conference call to discuss second quarter 2026 results today, July 29, 2026, at 11:00 a.m. Eastern Time (USA). Investors may listen to a live, listen-only webcast available on the investor relations section of the Company's website at https://ir.flyfrontier.com/news-and-events/events. The call will also be archived and available for at least 90 days on the investor relations section of the Company's website.

About Frontier Airlines

Frontier Airlines, Inc., a subsidiary of Frontier Group Holdings, Inc. (NASDAQ: ULCC), is a value-focused airline operating one of the youngest and most fuel-efficient fleets in the United States. With a growing network and continued investment in product upgrades, including the introduction of First Class seating, onboard Wi-Fi and enhanced loyalty benefits, Frontier is giving customers more comfort, flexibility, and rewards while keeping fares low.

End Notes

1 Industry average weighted by ASMs in FY2025 to include DAL, UAL, AAL, LUV, JBLU, ALK, and ALGT. Fuel efficiency is measured by ASMs per fuel gallon consumed.

Cautionary Statement Regarding Forward-Looking Statements and Information

Certain statements in this release should be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Words such as "expects," "will," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "goals," "targets" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law.

Actual results could differ materially from these forward-looking statements due to numerous risks and uncertainties relating to the Company's operations and business environment including, without limitation, the following: unfavorable economic and political conditions in the states where the Company operates and globally, including tariffs and other trade protection measures, an inflationary environment and potential recession, weakened demand environment, and the resulting impact on cost inputs and/or consumer demand for air travel; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity; disruptions to the Company's flight operations, including due to factors beyond the Company's control, such as adverse weather events or air traffic controller staffing shortages and facility and infrastructure constraints (including as a result of federal government shutdowns); the Company's ability to attract and retain qualified personnel at reasonable costs; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel, including as a result of the war between Russia and Ukraine and the conflict in the Middle East; the Company's reliance on technology and automated systems to operate its business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; the Company's reliance on third-party service providers and the impact of any failure of these parties to perform as expected, or interruptions in the Company's relationships with these providers or their provision of services; adverse publicity and/or harm to the Company's brand or reputation; reduced travel demand and potential tort liability as a result of an accident, catastrophe or incident involving the Company, its codeshare partners or another airline; terrorist attacks, international hostilities or other security events, or the fear of terrorist attacks or hostilities, even if not made directly on the airline industry; increasing privacy and data security obligations or a significant data breach; further changes to the airline industry with respect to alliances and joint business arrangements or due to consolidations; changes in the Company's network strategy or other factors outside its control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into less favorable aircraft orders; the Company's reliance on a single supplier for its aircraft and two suppliers for its engines, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; expanded inspection programs and/or heightened maintenance requirements imposed on the Company's aircraft or engines; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions on the Company's operations; extended interruptions or disruptions in service at major airports where the Company operates; the impacts of seasonality and other factors associated with the airline industry; the Company's failure to realize the full value of its intangible assets or its long-lived assets, causing the Company to record impairments; the costs of compliance with extensive government regulation of the airline industry; costs, liabilities and risks associated with environmental regulation and climate change; the Company's inability to accept or integrate new aircraft into the Company's fleet as planned; the impacts of the Company's significant amount of financial leverage from fixed obligations, the possibility the Company may seek material amounts of additional financial liquidity in the short-term and the impacts of insufficient liquidity on the Company's financial condition and business; failure to comply with the covenants in the Company's financing agreements or failure to comply with financial and other covenants governing the Company's other debt; changes in, or failure to retain, the Company's senior management team or other key employees; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; and other risks and uncertainties set forth from time to time under sections captioned "Risk Factors" in the Company's reports and other documents filed with the SEC, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 18, 2026.

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