Frontier Group (NASDAQ:ULCC) Issues Quarterly Earnings Results, Beats Expectations By $0.13 EPS

Frontier Group (NASDAQ:ULCC) released its earnings results on Wednesday. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.10 by $0.13, FiscalAI reports. Frontier Group had a negative return on equity of 25.73% and a negative net margin of 3.65%.Frontier Group’s revenue was down .5% on a year-over-year basis. During the same period last year, the company posted $0.23 EPS. Frontier Group updated its FY 2026 guidance to -0.400-0.500 EPS and its Q1 2026 guidance to -0.440–0.260 EPS.

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

• Frontier announced a non-binding agreement with AerCap to early-terminate 24 aircraft leases in Q2 and a framework with Airbus to moderate long-term growth to ~10%, actions intended to boost fleet productivity and utilization.
• Management is targeting $200 million of annual run-rate cost savings by 2027, including roughly $90 million of rent savings from the AerCap lease terminations, driven by network optimization and productivity improvements.
• The company expects revenue upside from investments in its loyalty program and commercial stack—including NDC distribution, simplified bundles, and upcoming product upgrades (first-class seats, Wi‑Fi, app/website)—and cites early RASM trends running >10% year-over-year.
• Frontier laid out a multi-pronged plan to reduce cancellations and improve on-time performance (turn-time improvements, integrated maintenance planning, enhanced day‑of‑travel communications), acknowledging past operational weaknesses but without quantified timelines for results.
• 2026 is framed as a transition year with a wide guidance range, no pilot contract assumed in guidance, and potential one-time redelivery costs (expected to be non-GAAP adjusted), creating execution and near-term financial visibility risks.

Frontier Group Trading Down 7.9%

Shares of ULCC stock opened at $5.49 on Thursday. The firm has a fifty day moving average of $5.18 and a 200-day moving average of $4.68. The stock has a market cap of $1.26 billion, a price-to-earnings ratio of -9.00 and a beta of 2.55. Frontier Group has a 52-week low of $2.89 and a 52-week high of $9.63. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.36 and a current ratio of 0.40.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Bank of America restated an “underperform” rating and issued a $4.00 price objective (down previously from $5.00) on shares of Frontier Group in a research note on Tuesday, January 6th. Susquehanna increased their price target on shares of Frontier Group from $4.00 to $5.00 and gave the company a “neutral” rating in a report on Friday, January 9th. Weiss Ratings restated a “sell (d-)” rating on shares of Frontier Group in a report on Monday, December 29th. Deutsche Bank Aktiengesellschaft lowered shares of Frontier Group from a “buy” rating to a “hold” rating and set a $6.00 price objective for the company. in a research report on Tuesday. Finally, UBS Group reissued a “neutral” rating and set a $6.00 target price (up from $4.00) on shares of Frontier Group in a research report on Friday, December 12th. One equities research analyst has rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $6.13.

Frontier Group News Roundup

Here are the key news stories impacting Frontier Group this week:

• Positive Sentiment: Q4 beat: Frontier reported $0.23 EPS vs. consensus ~$0.10 and delivered roughly flat revenue and improved unit costs (CASM excluding fuel). This shows near-term operating resilience despite industry headwinds. Frontier Beats Q4 Estimates (Zacks)
• Positive Sentiment: Fleet optimization & cost savings: Frontier struck a non‑binding deal with AerCap to return 24 A320neos early and agreed on sale‑leaseback options, part of a plan targeting ~$200M in savings through 2027 and ~10% capacity growth — a structural attempt to lower CASM and shore up margins. Fleet Optimization with AerCap (PR Newswire)
• Neutral Sentiment: Liquidity & metrics: Management reports $874M total liquidity at year‑end and RASM roughly flat year‑over‑year; these provide a buffer but don’t offset the earnings guidance miss. Q4 Results and Liquidity (PR Newswire)
• Neutral Sentiment: Earnings call / turnaround plan: Management laid out a multi‑year turnaround and detailed rightsizing moves; execution risk is high — the plan could meaningfully improve profitability if delivered, but it will take time. Turnaround Path (TipRanks)
• Negative Sentiment: Guidance disappointed: Frontier guided FY‑2026 EPS to -$0.40 to -$0.50 (consensus ~+$0.02) and Q1‑2026 to -$0.44 to -$0.26 (vs. consensus ~-0.30). The weak outlook is the main driver of the negative market reaction. Guidance & Q4 Summary (Yahoo Finance)
• Negative Sentiment: Analyst downgrade: Deutsche Bank cut ULCC from Buy to Hold and set a $6 price target, reducing bullish analyst support and likely contributing to selling pressure. Deutsche Bank Downgrade (AmericanBankingNews)
• Negative Sentiment: Insider selling / gap down: Reports of insider selling and associated gap‑down trading amplified the negative sentiment and volatility intraday. Insider Selling / Gap Down (AmericanBankingNews)

Insider Transactions at Frontier Group

In other news, CEO Barry Biffle sold 82,627 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $5.78, for a total value of $477,584.06. Following the sale, the chief executive officer directly owned 631,836 shares in the company, valued at approximately $3,652,012.08. This represents a 11.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Steve Schuller sold 5,000 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $6.00, for a total value of $30,000.00. Following the completion of the transaction, the senior vice president directly owned 94,926 shares of the company’s stock, valued at approximately $569,556. The trade was a 5.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 310,000 shares of company stock worth $1,700,444. 48.00% of the stock is currently owned by insiders.

Institutional Trading of Frontier Group

Large investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd bought a new position in shares of Frontier Group during the third quarter valued at $27,000. Brooklyn Investment Group increased its position in shares of Frontier Group by 490.7% during the 3rd quarter. Brooklyn Investment Group now owns 10,928 shares of the company’s stock worth $48,000 after purchasing an additional 9,078 shares in the last quarter. Numerai GP LLC bought a new position in Frontier Group during the 3rd quarter valued at about $61,000. AQR Capital Management LLC lifted its holdings in Frontier Group by 46.0% during the 1st quarter. AQR Capital Management LLC now owns 18,777 shares of the company’s stock valued at $81,000 after purchasing an additional 5,913 shares during the last quarter. Finally, IHT Wealth Management LLC bought a new stake in Frontier Group during the second quarter worth about $87,000.

About Frontier Group

Frontier Group, trading on Nasdaq under the ticker ULCC, is the holding company for Frontier Airlines, an ultra-low-cost carrier based in Denver, Colorado. The company’s core business centers on providing no-frills air travel across a point-to-point network while generating ancillary revenue from add-on services such as baggage fees, seat selection, priority boarding and in-flight refreshments. This fare-plus-a-la-carte model allows Frontier to offer competitive base fares and maintain low operating costs.

Founded in February 1994 by industry veterans Andrew Levy and Russell Beardsmore, Frontier Airlines commenced operations with a small fleet of MD-80 aircraft.