Companies /Industrials

Frontier Group Holdings Inc

NASDAQ: ULCC Airlines
$5.96
▲ $0.22 (+3.83%) today
Markets closed · 5:44pm ET

Q3 2025 Earnings

Reported Nov 5, 2025, 4:01pm ET · SEC source
$-0.34
Beat +7.66%
EPS · est. $-0.37
$886.0M
Miss −1.56%
Revenue · est. $900.1M
+39.0%
Beating market
ULCC vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Nov 5Nov 6report 4:01pm ETearnings−1.1%−4.3%
−6%−3%0Nov 5Nov 6earnings−1.1%−4.3%
ULCC −4.3%S&P 500 −1.1%
−6%−3%0Nov 5Nov 6report 4:01pm ETearnings−1.9%−4.3%
−6%−3%0Nov 5Nov 6earnings−1.9%−4.3%
ULCC −4.3%NASDAQ −1.9%
−4%0+4%Nov 4Nov 13report 4:01pm ETearnings−0.8%+3.1%
−4%0+4%Nov 4Nov 13earnings−0.8%+3.1%
ULCC +3.1%S&P 500 −0.8%
−4%0+4%Nov 4Nov 13report 4:01pm ETearnings−2.4%+3.1%
−4%0+4%Nov 4Nov 13earnings−2.4%+3.1%
ULCC +3.1%NASDAQ −2.4%
+1.04%
Day of report
+1.03%
Next session
+4.11%
One week
+40.87%
30 days

S&P 500 over the same 30 days: +1.90%.

Did ULCC Beat Earnings? Q3 2025 Results

Frontier Group Holdings posted a mixed third quarter for 2025, narrowly beating loss estimates on the bottom line while falling short on revenue, as rising costs weighed heavily on results. The ultra-low-cost carrier reported an adjusted loss of $0.34 per diluted share, clearing the consensus estimate of $0.37 by 7.66%, but revenue slipped 5.2% year-over-year to $886 million, missing the $900.06 million analyst target by 1.56%. The core problem was a cost structure that moved in the wrong direction despite capacity cuts; total operating expenses climbed 5% to $963 million even as the airline flew 4% less capacity, pushing CASM up 9% to 9.95 cents. Fuel offered modest relief, falling 10% to $234 million as the average per-gallon cost eased to $2.54 from $2.67 a year ago. Looking ahead, management guided Q4 adjusted EPS of $0.04 to $0.20, citing expected competitive capacity reductions, commercial momentum, and plans to introduce First Class seating early next year as catalysts for improvement.

Key Takeaways
  • Competitive pricing environment pressured revenues
  • 4% capacity reduction year-over-year with 15% lower average daily aircraft utilization
  • Load factor improved approximately 3 percentage points to 80.7%
  • Fuel cost per gallon declined 5% to $2.54
  • RASM stage-adjusted to 1,000 miles increased 2% year-over-year
  • Other revenue per passenger increased 43% to $3.92
  • Prior year quarter benefited from $38 million one-time legal settlement credit

“Our third-quarter results were in line with expectations as we navigated a competitive pricing environment. We expect ongoing competitive capacity reductions to continue through 2026, supporting a more balanced supply environment and improved revenue performance. Early next year, we will introduce our new First Class seating and anticipate significant growth in loyalty revenues as we continue delivering the best value to our customers.”

Frontier Group Holdings CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Frontier guided adjusted (non-GAAP) diluted EPS of $0.04 to $0.20, with roughly flat capacity growth compared to Q4 2024. Guidance assumes an average fuel cost of $2.50 per gallon and estimated weighted average diluted shares outstanding of 230 million. The outlook reflects expected improvement in competitive overlap capacity versus the prior year quarter, continued progress across key commercial initiatives, and fleet-related financing activities. Management expects competitive capacity reductions to continue through 2026, supporting a more balanced supply environment and improved revenue performance. The company plans to introduce First Class seating early next year and anticipates significant growth in loyalty revenues.

ULCC YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$300.0M$600.0M$900.0M$935.0M$886.0MRevenue
$0$300.0M$600.0M$900.0MRevenue

ULCC Revenue by Segment

Passenger Revenue$854.0M−6.0%
Other Revenue$32.0M+28.0%

Figures from SEC filings and company reports. Not investment advice.