Frontier Airlines Reports Second Quarter 2025 Financial Results
DENVER, Aug. 5, 2025 /PRNewswire/ -- Frontier Group Holdings, Inc. (NASDAQ:ULCC), parent company of Frontier Airlines, Inc., today reported financial results for the second quarter of 2025 and issued guidance for the third quarter of 2025.
Highlights:
Total revenue was $929 million on two percent lower capacity; revenue per available seat mile ("RASM") was 9.01 cents, while RASM on a stage adjusted basis to 1,000 miles was 8.74 cents, up slightly compared to the prior year quarter
Cost per available seat mile ("CASM") was 9.73 cents, eight percent above the comparable 2024 quarter, including fuel expense at an average cost of $2.36 per gallon, in-line with expectations, and total operating expenses of $1 billion, or $774 million excluding fuel (a non-GAAP measure)
Net loss was $70 million, or $(0.31) per share
Ended the quarter with $766 million of total liquidity
Took delivery of three A321neo aircraft during the second quarter, resulting in 84 percent of Frontier's fleet comprised of the highly fuel-efficient A320neo family aircraft, the highest percentage of all major U.S. carriers
Executed an agreement with Pratt & Whitney in late July to select the PW1100 GTF engine to power the final 91 Airbus A321neo aircraft in the Company's firm orderbook
Generated 106 available seat miles ("ASMs") per gallon, reaffirming Frontier's position as "America's Greenest Airline" as measured by fuel efficiency (ASMs per fuel gallon consumed during the second quarter, compared to all other major U.S. carriers)
Launched the previously announced free unlimited companion travel benefit for Frontier Elite Platinum and Diamond status members, reflecting the Company's commitment to offering convenience, flexibility and signature affordability, which along with other significant loyalty enhancements, supported a 19 percent increase in cardholder spending over the corresponding 2024 quarter
Launched 35 new routes and announced an expansion of service across the Eastern and Midwestern United States to include nonstop connections between Baltimore-Chicago O'Hare, and Myrtle Beach-Trenton, and 9 new routes from Atlanta
"Our second quarter results were within our guidance range, overcoming significant weather and extensive air traffic control delays in late May and June," commented Barry Biffle, Chief Executive Officer. "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 basis1 and provide a solid foundation for profitability in 2026."
Second Quarter 2025 Select Financial Highlights
The following is a summary of second quarter and select financial results, including both GAAP and adjusted (non-GAAP) metrics. Refer to "Reconciliations of Non-GAAP Financial Information" in the appendix of this release.
(unaudited, in millions, except for percentages and per share data)
Three Months Ended June 30,
2025
2024
As Reported
(GAAP)
Adjusted
(Non-GAAP)
As Reported
(GAAP)
Adjusted
(Non-GAAP)
Total operating revenues
$ 929
$ 929
$ 973
$ 973
Total operating expenses
$ 1,004
$ 1,004
$ 948
$ 948
Pre-tax income (loss)
$ (70)
$ (70)
$ 32
$ 32
Pre-tax income (loss) margin
(7.5) %
(7.5) %
3.3 %
3.3 %
Net income (loss)
$ (70)
$ (70)
$ 31
$ 31
Earnings per share, diluted
$ (0.31)
$ (0.31)
$ 0.14
$ 0.14
(unaudited, in millions, except for percentages and per share data)
Six Months Ended June 30, 2025
2025
2024
As Reported
(GAAP)
Adjusted
(Non-GAAP)
As Reported
(GAAP)
Adjusted
(Non-GAAP)
Total operating revenues
$ 1,841
$ 1,841
$ 1,838
$ 1,838
Total operating expenses
$ 1,962
$ 1,962
$ 1,844
$ 1,844
Pre-tax income (loss)
$ (110)
$ (110)
$ 8
$ 8
Pre-tax income (loss) margin
(6.0) %
(6.0) %
0.4 %
0.4 %
Net income (loss)
$ (113)
$ (113)
$ 5
$ 10
Earnings per share, diluted
$ (0.50)
$ (0.50)
$ 0.02
$ 0.04
Revenue Performance
Total operating revenue for the second quarter of 2025 was $929 million, five percent lower on two percent lower capacity primarily related to off-peak day-of-week reductions, both compared to the corresponding 2024 quarter. Total revenue declined due largely to a disruption in domestic air travel demand in April but which subsequently stabilized during the quarter, and from significant weather-related disruptions and extensive air traffic control ("ATC") ground delay programs.
RASM was 9.01 cents, two percent lower than the corresponding 2024 quarter, while RASM on a stage adjusted basis to 1,000 miles was up slightly compared to the same quarter, tempered by the operational factors noted above.
Enplanements and departures decreased four percent and nine percent, respectively, on an average stage length of 942 miles, a five percent increase compared to the corresponding 2024 quarter. Total revenue per passenger was $109, flat to the corresponding 2024 quarter, and flown load factor was approximately one percentage point higher at 79.3 percent.
Cost Performance
Total operating expenses were $1 billion in the second quarter of 2025, comprised of $230 million of fuel expense at an average cost of $2.36 per gallon, within expectations, and $774 million of operating expenses (excluding fuel), a non-GAAP measure.
CASM was 9.73 cents in the second quarter of 2025, eight percent higher than the comparable 2024 quarter. CASM (excluding fuel), a non-GAAP measure, was 7.50 cents compared to 6.24 cents in the 2024 quarter. The increase was due primarily to a 13 percent reduction in average daily aircraft utilization resulting from the Company's disciplined capacity deployment, fleet growth and lower sale-leaseback gains resulting from the timing of aircraft and spare engine deliveries.
Earnings
Net loss was $70 million for the second quarter of 2025, or $(0.31) per share based on approximately 228 million weighted-average shares outstanding in the quarter.
Liquidity
Total liquidity as of June 30, 2025 was $766 million, consisting of unrestricted cash and cash equivalents of $561 million and $205 million of availability from the Company's undrawn revolving credit facility.
Fleet
As of June 30, 2025, Frontier had a fleet of 164 Airbus single-aisle aircraft, as scheduled below, all financed through operating leases that expire between 2026 and 2037.
Equipment
Quantity
Seats
A320neo
82
186
A320ceo
6
180 - 186
A321ceo
21
230
A321neo
55
240
Total fleet
164
Frontier took delivery of three A321neo aircraft during the second quarter of 2025. As of June 30, 2025, the Company had commitments for an additional 180 aircraft to be delivered through 2031, including purchase commitments for 27 A320neo aircraft and 153 A321neo aircraft, with A321neo aircraft representing approximately 85 percent of future committed deliveries. The Company has secured sale-leaseback financing commitments for expected deliveries through 2025, and all planned 2026 deliveries through the third quarter of 2026 as of the date of this release.
As of June 30, 2025, 84 percent of Company's fleet was comprised of the highly fuel-efficient A320neo family aircraft, the highest percentage of all major U.S. carriers. The A321neo is expected to continue to unlock meaningful efficiencies from fuel savings and higher average seats per departure.
Frontier is "America's Greenest Airline" as measured by fuel efficiency (ASMs per fuel gallon consumed during the second quarter compared to all other major U.S. carriers). During the second quarter of 2025, Frontier generated 106 ASMs per gallon, two percent higher than the comparable 2024 quarter.
On July 23, 2025, the Company executed an agreement with Pratt & Whitney to select the PW1100 GTF engine to power 91 Airbus A321neo firm aircraft orders, the first of which is expected to deliver in late 2026. This agreement will bring the Company's total commitment to 235 GTF-powered A320neo family aircraft, including already delivered aircraft. These fuel-efficient engines will play an important role in the Company's continued commitment to being America's Greenest Airline.
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 Securities and Exchange Commission (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.
The Company's third quarter 2025 adjusted (non-GAAP) loss per share guidance, as noted below, reflects an expected sequential improvement in competitive overlap capacity and continued progress across key commercial initiatives and higher fuel prices relative to the prior quarter. Frontier's capacity in the third quarter of 2025 is expected to be down four to five percent to the corresponding prior-year quarter. The Company will continue to closely monitor the demand environment and make any further adjustments to capacity and related costs, as appropriate.
Third Quarter
2025
Adjusted (non-GAAP) loss per share(a)(b)(c)
$(0.26) to $(0.42)
(a)
Includes guidance on certain non-GAAP measures which excludes, among other things, special items. The Company is unable to reconcile these forward-looking projections to GAAP as the nature or amount of such special items cannot be determined at this time.
(b)
Based on the blended jet fuel curve on August 1, 2025, resulting in an average fuel cost (including fuel taxes and into-plane costs) of $2.51 per gallon and $2.41 per gallon in the third quarter and fourth quarter of 2025, respectively.
(c)
Based on estimated weighted average shares outstanding of 228 million shares in the third quarter of 2025 and a projected tax expense provision in the range of $2 to $4 million due to the expected recognition of a non-cash valuation allowance. The Company's actual tax expense may be impacted by varying factors which may include, but are not limited to, the composition of items of income and expense recognized in the respective periods, including the amount of non-deductible or other similar items, the treatment of deferred tax assets and related valuation allowances.
Conference Call
The Company will host a conference call to discuss second quarter 2025 results today, August 5, 2025, 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 committed to "Low Fares Done Right." Headquartered in Denver, Colorado, the Company operates 164 A320 family aircraft and has the largest A320neo family fleet in the U.S. The use of these aircraft, along with Frontier's high-density seating configuration and weight-saving initiatives, have contributed to Frontier's continued ability to be the most fuel-efficient of all major U.S. carriers when measured by ASMs per fuel gallon consumed. With 180 new Airbus planes on order, Frontier will continue to grow to deliver on the mission of providing affordable travel across America.
End notes
1 Stage-adjusted to 1,000 miles
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 Current Report on Form 8-K 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; 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, 2024, which was filed with the SEC on February 18, 2025.
Frontier Group Holdings, Inc.Condensed Consolidated Statements of Operations(unaudited, in millions, except share and per share data)
Three Months Ended June 30,
Percent Change
Six Months Ended June 30,
Percent Change
2025
2024
2025
2024
Operating revenues:
Passenger
$ 898
$ 950
(5) %
$ 1,782
$ 1,795
(1) %
Other
31
23
35 %
59
43
37 %
Total operating revenues
929
973
(5) %
1,841
1,838
— %
Operating expenses:
Aircraft fuel
230
288
(20) %
468
551
(15) %
Salaries, wages and benefits
254
244
4 %
503
477
5 %
Aircraft rent
194
147
32 %
355
306
16 %
Station operations
178
163
9 %
358
300
19 %
Maintenance, materials and repairs
47
42
12 %
98
91
8 %
Sales and marketing
39
47
(17) %
80
87
(8) %
Depreciation and amortization
21
18
17 %
41
34
21 %
Other operating
41
(1)
N/M
59
(2)
N/M
Total operating expenses
1,004
948
6 %
1,962
1,844
