First Quarter 2026 Select Financial Highlights
The following is a summary of first 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 March 31,
2026
2025
As Reported (GAAP)
Adjusted
(Non-GAAP)
As Reported (GAAP)
Adjusted
(Non-GAAP)
Total operating revenues
$ 992
$ 1,065
$ 912
$ 912
Revenue per available seat mile ("RASM") (¢)
10.11
10.86
9.17
9.17
RASM, stage-length adjusted to 1,000 miles (¢)
9.59
10.29
8.81
8.81
Total operating expenses
$ 1,275
$ 1,136
$ 958
$ 958
Income (loss) before income taxes
$ (281)
$ (69)
$ (40)
$ (40)
Income (loss) before income taxes margin
(28.3) %
(6.5) %
(4.4) %
(4.4) %
Net income (loss)
$ (272)
$ (68)
$ (43)
$ (43)
Earnings (loss) per share, diluted
$ (1.18)
$ (0.30)
$ (0.19)
$ (0.19)
Highlights (financial metrics are non-GAAP):
Adjusted revenue was nearly $1.1 billion, an all-time Company record, up 17 percent on one percent lower capacity compared to the corresponding 2025 quarter
Adjusted RASM, stage-length adjusted to 1,000 miles, was 10.29 cents, 17 percent higher compared to the corresponding 2025 quarter and at the higher end of the guidance range
Adjusted net loss was $68 million, or $0.30 per share, beating guidance ($0.32 to $0.44 loss per share)
Total liquidity was $974 million at the end of the first quarter, $100 million higher than year-end 2025
Generated 106 available seat miles ("ASM") per gallon in the first quarter of 2026, a fuel efficiency advantage of over 40 percent compared to the other major U.S. carriers1
Executed the previously announced agreements with Airbus to defer the delivery of 69 future A320 family aircraft and with AerCap to early terminate the leases associated with 24 A320neo aircraft
Received the 2025 Diamond Award of Excellence, the Federal Aviation Administration's most distinguished honor in recognition of Aircraft Maintenance Technicians and employers for their commitment to maintenance training and safety, for the second consecutive year
Recognized as North America's lowest-emission carrier in Cirium's 2025 EmeraldSky Review, placing Frontier in the Gold status tier reserved for the top five carriers globally
"Our ability to deliver strong top-line results and increase our liquidity despite a rapidly rising fuel cost environment validates our strategy and the resilience of our operating model," said Jimmy Dempsey, President and Chief Executive Officer. "We remain focused on our four key strategic priorities centered around rightsizing the fleet, strengthening our cost discipline, improving operational reliability and driving customer loyalty, with significant progress achieved on these priorities during the quarter. By staying aligned with our framework and focusing on items we can control, we believe we are well positioned to navigate near-term volatility while emerging stronger as macro conditions normalize."
First Quarter 2026 Results
Net loss was $272 million, or $1.18 per share, including a $139 million non-recurring charge related to the previously announced early lease termination of 24 A320neo aircraft (the "Early Return Agreement"), mostly comprised of non-cash charges, including non-recoverable capitalized prepaid maintenance and accelerated depreciation, along with other costs in connection with the early return of the aircraft and engines, and a $73 million non-recurring charge ("TSA Reserve") resulting from a court ruling relating to the remittance of Transportation Security Administration fees for unused travel that results in probable losses in prior years subject to audit.
Total operating revenue was approximately $1.0 billion, or 10.11 cents per ASM, inclusive of the TSA Reserve. Total operating expenses were approximately $1.3 billion, or 13.00 cents per ASM, inclusive of the Early Return Agreement.
Excluding the TSA Reserve and the Early Return Agreement, adjusted (non-GAAP) net loss was $68 million, or $0.30 per share, favorable to guidance.
The tax benefit generated from the pre-tax loss during the quarter was substantially offset by a non-cash valuation allowance against deferred tax assets. The net operating losses subject to a valuation allowance generally do not expire and may be used to offset future taxable income, at which time any related valuation allowance would be released.
Revenue and Cost Performance (adjusted non-GAAP)
Adjusted revenue was nearly $1.1 billion, a record, underpinned by strong travel demand, moderating competitive capacity and the continued progression of the Company's revenue management initiatives. ASMs were 9.8 billion, one percent lower compared to the corresponding 2025 quarter on an average stage length of 899 miles, consistent with guidance.
Adjusted RASM and adjusted RASM, stage-length adjusted to 1,000 miles, were 10.86 cents and 10.29 cents, respectively, both record first‑quarter levels in Frontier's history. Adjusted RASM, stage-length adjusted to 1,000 miles, increased 17 percent over the corresponding 2025 quarter, at the higher end of the guidance range. Flown load factor was approximately four percentage points higher at 78.4 percent.
Total adjusted operating expenses were approximately $1.1 billion in the first quarter of 2026, or 11.58 cents per ASM, including $268 million of fuel expense at an average cost of $2.88 per gallon. Total adjusted operating expenses (excluding fuel) were $868 million, or 8.85 cents per ASM, with the increase over the corresponding 2025 quarter driven largely by 12 percent lower average daily aircraft utilization and higher fleet-related costs against reduced capacity.
Liquidity
Total liquidity as of March 31, 2026 was $974 million, consisting of unrestricted cash and cash equivalents and availability from the Company's revolving credit facility.
Fleet
As of March 31, 2026, Frontier had a fleet of 183 Airbus single-aisle aircraft, as scheduled below, all financed through operating leases that expire between 2026 and 2038.
Equipment
Quantity
Seats
A320neo
94
186
A320ceo
6
180 - 186
A321ceo
21
230
A321neo
62
240
Total fleet
183
Frontier took delivery of five A320neo aircraft and two A321neo aircraft during the first quarter of 2026.
The Company expects to take delivery of seven A320 family aircraft in the second quarter 2026, including five A321neo aircraft and two A320neo aircraft, and return 24 A320neo leased aircraft tied to the Early Return Agreement.
Frontier is "America's Greenest Airline" as measured by fuel efficiency (ASMs per fuel gallon consumed) compared to all other major U.S. carriers, generating 106 ASMs per gallon in the first quarter of 2026. Frontier's fuel efficiency advantage of over 40 percent compared to the other major U.S. carriers1 helps the Company to mitigate the impact of the current elevated fuel prices, should they persist.
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.
Second quarter 2026 adjusted (non-GAAP) diluted per share guidance, as noted below, reflects significant progress anticipated across key commercial initiatives on higher average aircraft utilization underpinned by moderating competitive capacity, with significantly elevated jet fuel prices impacting expected results. RASM and RASM, stage-length adjusted to 1,000 miles, are expected to be up over 20 percent and high-teens on a percentage basis, respectively, compared to the corresponding 2025 quarter.
Having ended the first quarter of 2026 with $974 million of total liquidity, the Company expects total liquidity at the end the second quarter of 2026 in the range of $900 million to $950 million, bolstered by internal liquidity measures, including fleet-related activity and advanced discussions associated with an extension of the Company's co-brand credit card agreement.
The Company is not providing full year 2026 guidance other than for the items noted in the table below.
Second Quarter
2026
Adjusted (non-GAAP) diluted loss per share(a)(b)(c)(d)
$(0.45) to $(0.60)
Capacity growth (compared to 2Q 2025)(e)
6 to 8 percent
Full Year
2026
Pre-delivery deposits, net of refunds ($ millions)(f)
$(170) to $(210)
Other capital expenditures ($ millions)(g)
$170 to $220
_________________
(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)
Average fuel cost (including fuel taxes and into-plane costs) is estimated to be $4.25 per gallon in the second quarter of 2026.
(c)
The Company expects to recognize $75 million to $100 million of charges in the second quarter 2026 related to the Early Return Agreement, which are expected to be excluded for the presentation of adjusted (non-GAAP) operating expenses, consistent with the accounting treatment in the first quarter 2026, and is therefore excluded from the adjusted (non-GAAP) per share guidance.
(d)
Based on estimated weighted average diluted shares outstanding of 230 million shares in the second quarter of 2026 and no projected tax expense. 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.
(e)
Given the volatile nature of jet fuel prices, actual capacity adjustments made by the Company may be materially different than what is currently expected.
(f)
The Company expects its pre-delivery deposit balance to be reduced by $170 million to $210 million during the year, with a similar reduction expected in the related PDP financing facility balance.
(g)
Includes capitalized heavy maintenance.
Conference Call
The Company will host a conference call to discuss first quarter 2026 results today, May 5, 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 committed to delivering "Low Fares Done Right." Headquartered in Denver, Colorado, Frontier operates the largest A320neo family fleet in the U.S., which is also among the youngest and most fuel-efficient. With its expanding network, rewarding loyalty program, and bold new product offerings, Frontier is redefining low-fare travel and building The New Frontier as America's High-Value Airline.
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 report 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.
Frontier Group Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited, in millions, except share and per share data)
Three Months Ended March 31,
Percent Change
2026
2025
Operating revenues:
Passenger
$ 952
$ 884
8 %
Other
40
28
43 %
Total operating revenues
992
912
9 %
Operating expenses:
Aircraft fuel
268
238
13 %
Salaries, wages and benefits
271
249
9 %
Aircraft rent
265
161
65 %
Station operations
192
180
7 %
Maintenance, materials and repairs
142
51
178 %
Sales and marketing
43
41
5 %
Depreciation and amortization
62
20
210 %
Other operating
32
18
78 %
Total operating expenses
