Highlights:
Total revenue was $997 million on capacity which was flat to the corresponding 2024 quarter
Revenue per available seat mile ("RASM") was 10.17 cents, while RASM on a stage adjusted basis to 1,000 miles was 9.61 cents, slightly higher than the comparable 2024 quarter
Cost per available seat mile ("CASM") was 9.67 cents, including fuel expense at an average cost of $2.44 per gallon; total operating expenses were $948 million, or $721 million excluding fuel, a non-GAAP measure, resulting in CASM excluding fuel of 7.36 cents
Net income was $53 million, or $0.23 per diluted share
Total liquidity was $874 million at year-end, including $220 million from the recently expanded revolving credit facility, representing approximately 23 percent of trailing twelve month revenue
Announced a non-binding agreement with AerCap Holdings N.V. ("AerCap") for the early return of 24 A320neo aircraft in the second quarter of 2026 to right size the fleet and enhance the productivity of the airline. Additionally, AerCap will commit to 10 future sale-leaseback transactions for deliveries scheduled in 2028 and 2029, strengthening the parties' long-term partnership
Reached a non-binding framework agreement with Airbus SAS to adjust the delivery profile of the Company's orderbook to support a more measured long-term annual growth rate of approximately 10 percent through the deferral of 69 A320neo family aircraft otherwise scheduled to be delivered between 2027 and 2030
Announced 23 new routes launching in March and April to destinations across the U.S. and Mexico along with 57 previously announced routes launched in late 2025 and early 2026, bolstering Frontier's commitment to be the leading high-value carrier in the top 20 U.S. metros
"As the quarter progressed, we benefited from a more constructive supply-demand environment, which, combined with our revenue management initiatives, supported fourth quarter results that were above guidance, overcoming sector-wide impacts of an extended government shutdown," commented Jimmy Dempsey, President and Chief Executive Officer. "As we look ahead to fiscal 2026, we are encouraged by demand trends and are laser focused on returning Frontier to profitability, strengthening our competitive position and driving enhanced value for our stakeholders. To achieve this, we're executing a strategy centered on four key priorities: rightsizing our fleet, strengthening our cost discipline, reducing cancellations and improving on-time performance, and maturing customer loyalty."
Fourth Quarter and Full Year 2025 Select Financial Highlights
The following is a summary of fourth quarter and full-year 2025 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 December 31,
2025
2024
As Reported (GAAP)
Adjusted
(Non-GAAP)
As Reported (GAAP)
Adjusted
(Non-GAAP)
Total operating revenues
$ 997
$ 997
$ 1,002
$ 1,002
Total operating expenses
$ 948
$ 948
$ 957
$ 957
Pre-tax income
$ 52
$ 52
$ 51
$ 51
Pre-tax income margin
5.2 %
5.2 %
5.1 %
5.1 %
Net income
$ 53
$ 53
$ 54
$ 54
Earnings per share, diluted
$ 0.23
$ 0.23
$ 0.23
$ 0.23
(unaudited, in millions, except for percentages and per share data)
Year Ended December 31,
2025
2024
As Reported (GAAP)
Adjusted
(Non-GAAP)
As Reported (GAAP)
Adjusted
(Non-GAAP)
Total operating revenues
$ 3,724
$ 3,724
$ 3,775
$ 3,775
Total operating expenses
$ 3,873
$ 3,873
$ 3,717
$ 3,755
Pre-tax income (loss)
$ (134)
$ (134)
$ 86
$ 49
Pre-tax income (loss) margin
(3.6) %
(3.6) %
2.3 %
1.3 %
Net income (loss)
$ (137)
$ (137)
$ 85
$ 53
Earnings per share, diluted
$ (0.60)
$ (0.60)
$ 0.37
$ 0.22
Revenue Performance
Total operating revenue for the fourth quarter of 2025 was $997 million on capacity consistent with the 2024 quarter, and an average stage length of 892 miles. RASM was 10.17 cents, while RASM on a stage adjusted basis to 1,000 miles was 9.61 cents, slightly higher than the comparable 2024 quarter, largely driven by the continued progress on the Company's revenue and network initiatives and overall moderation in competitive capacity which helped to overcome the November U.S government shutdown and the resulting FAA flight reduction directive. The Company estimates these two events negatively impacted revenue by approximately $30 million.
Total revenue per passenger was $117, consistent with the corresponding 2024 quarter. Flown load factor was up slightly compared to the corresponding 2024 quarter at 79 percent.
Cost Performance
Total operating expenses for the fourth quarter of 2025 totaled $948 million, including $227 million of fuel expenses at an average cost of $2.44 per gallon. Total adjusted operating expenses (excluding fuel), a non-GAAP measure, were $721 million.
CASM was 9.67 cents in the fourth quarter compared to 9.78 cents in the corresponding 2024 quarter. Adjusted CASM (excluding fuel), a non-GAAP measure, was 7.36 cents, 1 percent lower than the corresponding 2024 quarter, driven largely by sale-leaseback gains on higher fleet induction activity during the quarter, offset by the impact from a 10 percent reduction in average daily aircraft utilization and higher station costs.
Frontier's full-year 2025 adjusted CASM + net interest, a non-GAAP measure, was 9.70 cents. Stage adjusted to 1,000 miles, full-year 2025 adjusted CASM + net interest was 9.30 cents, a relative advantage greater than 40 percent compared to the industry average1.
Earnings
Pre-tax income for the fourth quarter of 2025 was $52 million, reflecting a margin of 5.2 percent.
Net income for the fourth quarter of 2025 was $53 million, or $0.23 per diluted share based on approximately 230 million weighted-average shares outstanding in the quarter. The tax expense generated from pre-tax income was offset by the corresponding release of the cumulative valuation allowance from the utilization of a portion of net operating losses.
Liquidity
Total liquidity as of December 31, 2025 was $874 million, consisting of unrestricted cash and cash equivalents of $654 million and $220 million from the Company's revolving credit facility, which was expanded by $15 million in December 2025. No other changes were made to the contractual terms of the revolving credit facility. Total liquidity at year-end represents approximately 23 percent of trailing twelve month revenue.
Fleet
As of December 31, 2025, Frontier had a fleet of 176 Airbus single-aisle aircraft, as scheduled below, all financed through operating leases that expire between 2027 and 2037.
Equipment
Quantity
Seats
A320ceo
6
180 or 186
A320neo
89
186
A321ceo
21
230
A321neo
60
240
Total fleet
176
Frontier took delivery of 10 A320neo family aircraft during the fourth quarter of 2025, including 7 A320neo aircraft and 3 A321neo aircraft, and 10 PW1100 GTF spare aircraft engines. The aircraft inductions increased the proportion of the fleet comprised of the more fuel-efficient A320neo family aircraft to 85 percent as of December 31, 2025, the highest of all major U.S. carriers. 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, consistent with the corresponding 2024 quarter.
Planned Fleet Updates
In early February 2026, as separately announced, the Company reached a non-binding letter of intent with AerCap Holdings N.V. to terminate the leases associated with 24 aircraft currently in operation which were otherwise scheduled to expire in the next two to eight years. These aircraft are expected to be returned in the second quarter of 2026. Additionally, AerCap will commit to 10 future sale-leaseback transactions for deliveries scheduled for the years 2028 and 2029.
Separately, the Company reached a non-binding framework agreement with Airbus SAS to defer the induction of 69 A320neo family aircraft which were otherwise expected to be contractually delivered between 2027 and 2030. The deferred aircraft are rescheduled to be delivered in 2031 through 2033.
The Company expects to finalize the definitive documents for both transactions by the first quarter of 2026 and incur certain one-time expenses associated with the completion of the lease termination agreement.
Upon closing, these fleet modifications, among other identified cost saving opportunities, are targeted to generate annual run-rate cost savings of approximately $200 million by 2027 and moderate the Company's long-term annual capacity growth to approximately 10 percent.
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 first quarter 2026 adjusted (non-GAAP) diluted per share guidance, as noted below, reflects RASM on a stage adjusted basis to 1,000 miles currently trending to over 10 percent higher compared to the corresponding 2025 quarter, underpinned by a more constructive supply-demand environment and revenue management enhancements. Unit costs are expected to be relatively higher in the first quarter largely driven by fleet growth across lower scheduled utilization. Adjusted CASM (excluding fuel), a non-GAAP measure, is expected to ease as the year progresses as the Company right-sizes its fleet and generates benefits from the targeted cost savings as noted in the prior section. Full-year 2026 per share guidance reflects the expectation of a more constructive supply-demand environment and productivity gains beginning in the second quarter.
The forward guidance estimates are presented in the following table:
First Quarter
Full Year
2026(a)
2026(a)
Adjusted (non-GAAP) diluted per share expected results(b)(c)
$(0.26) to $(0.44)
$(0.40) to $0.50
Capacity growth (compared to corresponding prior year period)
(1) to (2) percent
~10 percent
Pre-delivery deposits, net of refunds ($ millions)(d)
$(170) to $(210)
Other capital expenditures ($ millions)(d)(e)
$200 to $250
_________________
(a)
Includes guidance on certain non-GAAP measures which excludes, among other things, special items as well as certain one-time expenses associated with the expected completion of the lease termination agreement as disclosed in the Fleet section of this release. 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 February 3, 2026, resulting in an average fuel cost (including fuel taxes and into-plane costs) of $2.50 per gallon for the first quarter of 2026 and $2.45 per gallon for full year 2026.
(c)
Based on estimated weighted average shares outstanding of 229 million shares in the first quarter 2026 and $3 to $5 million expected 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.
(d)
Assumes execution of the non-binding framework agreement with Airbus as disclosed in the Fleet section of this release. The Company expects its pre-delivery deposit balance to be reduced by $170 million to $210 million during the year as a result of the framework agreement, with a similar reduction expected in the related PDP financing facility balance.
(e)
Assumes execution of the non-binding LOI with AerCap as disclosed in the Fleet section of this release; other capital expenditures includes capitalized heavy maintenance.
Analyst Call
The Company will host a conference call with analysts to discuss fourth quarter 2025 results today, February 11, 2026, at 11:00 a.m. Eastern Time (USA). Other interested parties 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.
A full transcript of management's prepared remarks to be delivered on this call is available on the investor relations section of the Company's website at the address noted above.
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 each respective period and includes the following carriers: DAL, UAL, AAL, LUV, JBLU, ALK, and ALGT; adjusted CASM + net interest is stage adjusted to 1,000 miles for consistency across all carriers, calculated as adjusted CASM + net interest * square root (stage length/1,000); excludes JBLU and ALGT non-airline costs and DAL third-party refinery costs; includes LUV, UAL and DAL profit sharing; includes UAL third-party business expenses; includes other non-operating costs for the industry.
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 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, 2024, which was filed with the SEC on February 18, 2025.
Frontier Group Holdings, Inc.
Consolidated Statements of Operations
(unaudited, in millions, except percentages and share and per share amounts)
Three Months Ended December 31,
Percent Change
Year Ended December 31,
Percent Change
2025
2024
2025
2024
Operating revenues:
Passenger
$ 962
$ 978
(2) %
$ 3,598
$ 3,683
(2) %
Other
35
24
46 %
126
92
37 %
Total operating revenues
997
1,002
— %
3,724
3,775
(1) %
Operating expenses:
Aircraft fuel
227
229
(1) %
929
1,041
(11) %
Salaries, wages and benefits
262
241
9 %
1,016
954
6 %
Aircraft rent
212
192
10 %
748
675
11 %
Station operations
186
173
8 %
717
637
13 %
Maintenance, materials and repairs
59
65
(9) %
209
209
— %
Sales and marketing
41
45
(9) %
159
178
(11) %
Depreciation and amortization
26
19
37 %
91
72
26 %
Other operating
(65)
(7)
829 %
4
(49)
N/M
