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Frontier Group Holdings

Frontier Group Holdings (ULCC) Q2 2026 Earnings

Reported Jul 29, 2026 at 8:01 AM ET · SEC Source

Q2 26 EPS

$-0.10

BEAT +78.77%

Est. $-0.47

Q2 26 Revenue

$1.28B

BEAT +4.75%

Est. $1.22B

vs S&P Since Q2 26

+2.7%

BEATING MARKET

ULCC +6.9% vs S&P +4.1%

Market Reaction

Did ULCC Beat Earnings? Q2 2026 Results

Frontier Group Holdings delivered a sharply better-than-expected second quarter, with the ultra-low-cost carrier posting an adjusted loss of just $0.10 per share against a consensus estimate of $0.47, a 78.77% beat, while revenue climbed 37.7% year-o… Read more Frontier Group Holdings delivered a sharply better-than-expected second quarter, with the ultra-low-cost carrier posting an adjusted loss of just $0.10 per share against a consensus estimate of $0.47, a 78.77% beat, while revenue climbed 37.7% year-over-year to a record $1.28 billion, topping forecasts by 4.75%. The outperformance was driven primarily by a 28% surge in revenue per available seat mile to 11.52 cents, reflecting strong leisure travel demand and favorable competitive capacity dynamics following consolidation in the low-fare market. Passenger revenue reached $1.24 billion, with fare revenue per passenger jumping 54% to $63.04 as 9.73 million travelers flew on 8% more capacity. The quarter was not without headwinds; a $70 million charge tied to early lease terminations on 24 aircraft pushed the GAAP net loss to $90 million, and fuel costs per gallon surged 77% to $4.17. Looking ahead, Frontier guided Q3 adjusted EPS to a range of $0.10 loss to $0.10 gain on 17-18% capacity growth, with RASM expected to rise more than 20% year-over-year for a third consecutive quarter of double-digit unit revenue growth.

Key Takeaways

  • • Strong travel demand and favorable competitive capacity environment
  • • 28% RASM increase year-over-year to 11.52 cents, exceeding guidance
  • • Fare revenue per passenger increased 54% to $63.04
  • • Load factor improved approximately 1 percentage point to 80.3%
  • • 8% higher capacity with 11.1 billion ASMs
  • • 14% increase in passengers to 9.73 million
  • • Revenue management initiative execution

ULCC Forward Guidance & Outlook

For Q3 2026, Frontier guides adjusted (non-GAAP) diluted EPS of $(0.10) to $0.10 with capacity growth of 17-18% year-over-year, and expects RASM to increase over 20% year-over-year. Average fuel cost is estimated at $3.70 per gallon. For Q4 2026, adjusted diluted EPS is guided at breakeven to $0.20 with approximately 7% capacity growth and average fuel cost of $3.50 per gallon. Full-year 2026 pre-delivery deposits are expected to decline by $170-$210 million, with other capital expenditures of $170-$220 million. The company expects to take delivery of six aircraft in Q3 2026. Management noted elevated fuel prices continue as a cost headwind, while favorable competitive capacity and strong travel demand underpin the revenue outlook.

24/7 Wall St

ULCC YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

ULCC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q2 26

“Our transformation plan is delivering meaningful results, reflecting our team's relentless focus on execution. The strength of our second quarter revenue performance is a testament to the momentum we are building through our commercial initiatives, product investments and loyalty enhancements, as well as the continued resilience of the demand environment.”

— Jimmy Dempsey, Q2 2026 Earnings Press Release

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