Frontier Group (NASDAQ:ULCC) Posts Quarterly Earnings Results, Beats Estimates By $0.24 EPS

Frontier Group (NASDAQ:ULCC) announced its quarterly earnings data on Wednesday. The company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.24, FiscalAI reports. Frontier Group had a negative net margin of 8.93% and a positive return on equity of 1.06%. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter in the previous year, the company posted ($0.34) EPS. The business’s revenue was up 52.9% compared to the same quarter last year.

Here are the key takeaways from Frontier Group’s conference call:

• Frontier reported record third-quarter revenue of $1.4 billion, up 53% year over year, while RASM rose 30% and adjusted EPS reached $0.18, above the high end of guidance despite a 56% increase in fuel costs.
• Fleet rightsizing is substantially complete, with 13 A320neos returned and 10 newer A321neos added through direct leases. Management expects lower maintenance obligations and leverage of just over 4 times adjusted EBITDAR, down from 7 times at year-end 2025.
• Loyalty-related revenue increased 37%, supported by co-brand card and membership growth, while First Class installations are beginning and Starlink Wi-Fi is expected to roll out from the first quarter of 2027.
• Fourth-quarter adjusted EPS guidance ranges from a loss of $0.15 to a profit of $0.05, reflecting expected fuel costs of $4.75 per gallon, more than $100 million above prior guidance. Capacity growth for 2027 is also being moderated to roughly 5% to 7%, depending on fuel prices.
• Operational reliability is improving, with completion factor ranking among the top three domestic carriers in September and October to date, but management acknowledged further work is needed on first-wave performance, disruption recovery, and underlying operating systems through 2027.

Frontier Group Stock Down 0.7%

ULCC stock opened at $6.43 on Friday. The firm has a market cap of $1.48 billion, a PE ratio of -3.61 and a beta of 2.64. Frontier Group has a 1 year low of $3.02 and a 1 year high of $8.40. The company has a fifty day simple moving average of $5.71 and a 200 day simple moving average of $5.42. The company has a current ratio of 0.58, a quick ratio of 0.54 and a debt-to-equity ratio of 2.77.

Insider Activity

In other Frontier Group news, SVP Alexandre Clerc sold 3,068 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $8.17, for a total transaction of $25,065.56. Following the transaction, the senior vice president directly owned 37,488 shares in the company, valued at $306,276.96. This trade represents a 7.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Steve Schuller sold 10,000 shares of the company’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $7.55, for a total value of $75,500.00. Following the sale, the senior vice president owned 87,175 shares of the company’s stock, valued at approximately $658,171.25. This trade represents a 10.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 342,520 shares of company stock valued at $2,735,529. Corporate insiders own 48.00% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on ULCC. Weiss Ratings reiterated a “sell (d-)” rating on shares of Frontier Group in a research report on Wednesday. Barclays reduced their price target on shares of Frontier Group from $7.00 to $5.00 and set an “underweight” rating for the company in a research report on Friday, September 11th. UBS Group cut their target price on shares of Frontier Group from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Thursday, September 24th. Susquehanna upped their price target on Frontier Group from $6.00 to $6.50 and gave the company a “neutral” rating in a research report on Thursday. Finally, Zacks Research downgraded shares of Frontier Group from a “strong-buy” rating to a “hold” rating in a research report on Thursday, August 27th. Six analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $6.36.

Frontier Group Company Profile

Frontier Group Holdings, Inc is the parent company of Frontier Airlines, an ultra-low-cost passenger airline headquartered in Denver, Colorado. The company operates a low-fare, point-to-point air transportation business, primarily serving leisure travelers and price-conscious customers.

Frontier Airlines offers scheduled flights to destinations across the United States, as well as selected locations in the Caribbean and Latin America. Its business model emphasizes low base fares with additional charges for optional services such as checked baggage, seat selection, priority boarding and other travel-related products.

Frontier Airlines traces its roots to 1994 and has expanded its network through a fleet focused largely on Airbus narrow-body aircraft.