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ULCC

Frontier Group Holdings, Inc.

ULCC

Frontier Group Holdings, Inc. • NASDAQ
$4.56 ▲ 2.70% (+0.12)
Market Cap $1.04 B
52w High $10.26
52w Low $2.89
Dividend Yield 0%
P/E -7.48
Volume 2.13M
Outstanding Shares 228.23M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $886M ▼ $479M ▲ $-77M ▼ -8.691% ▼ $-0.34 ▼ $-37M ▲
Q2-2025 $929M ▲ $80M ▼ $-70M ▼ -7.535% ▼ $-0.31 ▼ $-47M ▼
Q1-2025 $912M ▼ $497M ▲ $-43M ▼ -4.715% ▼ $-0.19 ▼ $-29M ▼
Q4-2024 $1.002B ▲ $38M ▼ $54M ▲ 5.389% ▲ $0.24 ▲ $71M ▲
Q3-2024 $935M $229M $26M 2.781% $0.11 $48M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $566M ▲ $6.701B ▲ $6.267B ▲ $434M ▼
Q2-2025 $563M ▼ $6.524B ▲ $6.018B ▲ $506M ▼
Q1-2025 $686M ▼ $6.481B ▲ $5.911B ▲ $570M ▼
Q4-2024 $740M ▲ $6.153B ▲ $5.549B ▲ $604M ▲
Q3-2024 $576M $5.826B $5.277B $549M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-77M ▼ $-215M ▼ $-45M ▲ $263M ▲ $3M ▲ $-45M ▼
Q2-2025 $-70M ▼ $-133M ▼ $-84M ▼ $94M ▲ $-123M ▼ $2M ▲
Q1-2025 $-43M ▼ $-86M ▼ $-29M $61M ▼ $-54M ▼ $-115M ▼
Q4-2024 $54M ▲ $87M ▲ $-29M ▼ $106M ▲ $164M ▲ $73M ▲
Q3-2024 $26M $-156M $-12M $86M $-82M $-170M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Aircraft Fare
Aircraft Fare
 $770.00M ▲$0 ▼$350.00M ▲$330.00M ▼
NonFare Passenger Revenue
NonFare Passenger Revenue
 $1.16Bn ▲$0 ▼$550.00M ▲$520.00M ▼
Other Passenger Revenue
Other Passenger Revenue
 $60.00M ▲$0 ▼$30.00M ▲$30.00M ▲
Passenger
Passenger
 $1.93Bn ▲$880.00M ▼$900.00M ▲$850.00M ▼
Passenger Baggage
Passenger Baggage
 $450.00M ▲$0 ▼$190.00M ▲$180.00M ▼
Passenger Seat Selection
Passenger Seat Selection
 $140.00M ▲$0 ▼$80.00M ▲$80.00M ▲
Passenger Service Fees
Passenger Service Fees
 $520.00M ▲$0 ▼$250.00M ▲$230.00M ▼
Product and Service Other
Product and Service Other
 $50.00M ▲$30.00M ▼$30.00M ▲$30.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Frontier’s income statement shows a classic recovery story with thin margins. Revenue has grown strongly over the past several years, more than doubling from early-pandemic levels as travel demand came back and the network expanded. Profitability, however, still looks fragile. Gross profit swung from deep losses during the pandemic to solidly positive levels more recently, but operating profit has hovered around break-even and only turned modestly positive in the latest year. Net income has just recently moved into the black after multiple years of losses, and earnings per share remain low. This means the business is now roughly profitable, but with very little room for error. Small shifts in fuel costs, pricing, or demand can quickly push results back into loss-making territory. Overall, the trend is encouraging—improving from heavy losses to slight profitability—but the earnings base is still thin, volatile, and highly sensitive to the broader airline environment.

Balance Sheet

Balance Sheet The balance sheet reflects a capital-heavy, highly leveraged airline in growth mode. Total assets have risen steadily as Frontier has added aircraft and related assets, building out its fleet and network. Cash on hand is meaningful but not especially large relative to the size of the business, so liquidity is adequate but not abundant. Debt has climbed over the years and now significantly outweighs equity. This leverage is common in the airline sector, but it does increase financial risk, especially given Frontier’s slim profit margins and uneven cash generation. Equity has inched up over time, which is a positive sign, yet it still represents a relatively thin cushion against shocks. In short, Frontier has built a sizable asset base and remains heavily debt-financed. That structure can amplify gains in good times but leaves the company more exposed if operating conditions weaken.

Cash Flow

Cash Flow Cash flow is the soft spot in the story. Despite the recent move to modest profitability, operating cash flow has been negative in most of the past few years, with only one clear year of positive inflows following the pandemic. That suggests earnings quality and cash conversion have been inconsistent. Free cash flow has largely been negative as well, reflecting the combination of weaker operating cash flow and ongoing spending on aircraft and related investments. Capital expenditure itself is not extreme, but because cash from operations has been limited, the company has needed to lean on its balance sheet and financing to support growth and operations. This pattern is not unusual for a growing, asset-intensive airline, but it does mean Frontier is not yet self-funding. The key question going forward is whether the new strategy can turn modest accounting profits into reliable, positive free cash flow.

Competitive Edge

Competitive Edge Frontier’s main competitive strength is its very low-cost structure. It operates a single, modern family of Airbus aircraft, keeps planes flying a lot of hours, and unbundles fares so customers pay only for what they use. This model supports some of the lowest unit costs in the U.S. airline industry and allows Frontier to advertise very low base fares. The company also leans heavily on fees for extras like bags, seat selection, and bundles. This ancillary revenue approach is now standard among ultra-low-cost carriers, but Frontier executes it at scale and uses it to keep headline ticket prices attractive for highly price-sensitive travelers. At the same time, Frontier is trying to move beyond a pure bare-bones model. It is introducing more premium-style options, new fare bundles, and enhanced loyalty offerings aimed at slightly higher-yield customers. This hybrid strategy could widen its customer base and reduce dependence on the most price-sensitive segment, but it also puts Frontier into more direct competition with legacy airlines and other budget carriers following similar paths. Overall, Frontier has a clear cost advantage and a recognizable low-fare brand, but it competes in a crowded, aggressive market where rivals can quickly respond with matching routes and promotions.

Innovation and R&D

Innovation and R&D Frontier’s innovation is more strategic and commercial than technological. Rather than inventing new aircraft technology, the airline is reshaping its product and revenue model. Key elements include: - A “New Frontier” transformation that introduces a small First Class-style cabin and more comfortable seating options, targeting travelers willing to pay for extra comfort without paying legacy-carrier prices. - New fare bundles such as business-oriented options and enhanced economy bundles, designed to mimic some of the flexibility and perks of larger airlines while keeping costs low. - A revamped loyalty program, including a miles-matching initiative and a growing co-branded credit card business, with ambitious goals to lift loyalty revenue per passenger over the next several years. - Continued investment in a highly fuel-efficient fleet, supporting both cost savings and an “America’s Greenest Airline” branding angle. These moves aim to create a hybrid model that blends ultra-low costs with more differentiated offerings. The opportunity is higher revenue per passenger and more loyal customers; the risk is execution—Frontier must add these features without undermining its cost edge or confusing its core budget-focused customer base.

Summary

Frontier has transitioned from pandemic-era distress to modest profitability, with revenues rebounding strongly and losses narrowing into small profits. However, margins remain thin and volatile, leaving results very sensitive to industry swings. The company has built up a larger, more efficient fleet and a meaningful asset base, but it carries substantial debt and only a modest equity cushion. Cash flow has lagged earnings, with operating and free cash flow often negative, so the business is not yet generating robust, self-sustaining cash. Strategically, Frontier’s low-cost, high-fee model remains its foundation, but management is pushing a notable shift toward a hybrid profile with premium seating, richer bundles, and a more aggressive loyalty and credit card strategy. If executed well, this could deepen its competitive position and improve profitability; if mismanaged, it could strain finances and blur its core value proposition. Overall, Frontier stands at an inflection point: financially recovered enough to pursue growth and product upgrades, but still constrained by leverage and weak cash generation. The next few years of execution on its “New Frontier” strategy, and the industry’s response, will be critical in determining how durable its improvement becomes.

NEWS

November 5, 2025 · 4:02 PM UTC

Frontier Airlines Reports Third Quarter 2025 Financial Results

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October 31, 2025 · 9:10 AM UTC

Eos Energy Secures Strategic 228 MWh Order from Frontier Power Under Existing 5 GWh Framework Agreement & Achieves Final Cerberus Milestone

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October 28, 2025 · 4:05 PM UTC

Frontier Reports Third-Quarter 2025 Results

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October 27, 2025 · 4:05 PM UTC

Frontier Group Holdings Announces Webcast of Third Quarter 2025 Financial Results

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October 15, 2025 · 6:00 AM UTC

Frontier Scientific Solutions and Air Transport Services Group Announce Strategic Partnership to Launch Dedicated Air Services for Life Sciences

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