ULCC · Frontier Group Holdings, Inc.

Frontier Group Holdings delivered record adjusted revenue of nearly $1.1 billion in Q1 2026, up 17% year-over-year despite 1% lower capacity, driven by strong travel demand, moderating competitive capacity, and revenue management initiatives. Adjusted RASM, stage-length adjusted to 1,000 miles, reached a record 10.29 cents, up 17% YoY and at the high end of guidance, with flown load factor improving to 78.4%. GAAP results reflected a $272 million net loss or $1.18 per share, impacted by a $139 million non-recurring charge from early lease terminations of 24 A320neo aircraft (mostly non-cash) and a $73 million TSA Reserve from a court ruling on prior-year fees. Excluding these, adjusted net loss was $68 million or $0.30 per share, beating the guided $0.32-$0.44 loss range. Adjusted operating expenses rose to $1.136 billion or 11.58 cents per ASM, with fuel at $2.88/gallon amid rising prices; ex-fuel costs increased due to 12% lower aircraft utilization and higher fleet costs on reduced capacity. Liquidity strengthened to $974 million, up $100 million from year-end 2025. Fleet stood at 183 Airbus aircraft, with deliveries of 7 new A320 family planes in Q1 and plans for 7 more in Q2 offset by 24 returns. Fuel efficiency hit 106 ASMs per gallon, over 40% better than major U.S. peers, aiding resilience. CEO Jimmy Dempsey highlighted progress on rightsizing fleet, cost discipline, reliability, and loyalty amid fuel volatility. Q2 guidance projects adjusted loss per share of $(0.45)-$(0.60) on 6-8% capacity growth, RASM up over 20% and high-teens stage-adjusted YoY, with fuel at $4.25/gallon and $75-100 million excluded Early Return charges; Q2-end liquidity $900-950 million.