Frontier Group (NASDAQ:ULCC) Issues Quarterly Earnings Results

Frontier Group (NASDAQ:ULCC) posted its earnings results on Wednesday. The company reported ($0.10) EPS for the quarter, topping the consensus estimate of ($0.47) by $0.37, FiscalAI reports. Frontier Group had a negative net margin of 9.29% and a negative return on equity of 29.82%. The firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same period last year, the company posted ($0.31) EPS. The company’s quarterly revenue was up 37.7% compared to the same quarter last year. Frontier Group updated its Q4 2026 guidance to 0.000-0.200 EPS and its Q3 2026 guidance to -0.100-0.100 EPS.

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

• Second-quarter results significantly exceeded expectations: adjusted loss per share was $0.10 versus prior guidance of a $0.45–$0.60 loss, while revenue reached a record $1.3 billion, up 38% year over year, with RASM up 28%.
• Frontier ended the quarter with $1.16 billion of liquidity and expects continued cost improvement, remaining on track for $200 million in annualized savings by 2027; unit costs excluding fuel and certain items fell more than 10% sequentially.
• Fleet rightsizing is largely complete, with all 24 AerCap aircraft returned and potential early termination of 13 A320neo leases alongside up to 10 newer A321neos; management expects a fleet of no more than 168 aircraft through 2027, supporting more disciplined growth.
• Commercial initiatives are gaining traction, including nearly 30% year-over-year growth in Barclays co-brand revenue and strong demand for UpFront Plus; first-class seating will roll out beginning in late 2026, followed by fleet-wide Starlink Wi-Fi in early 2027.
• Frontier expects third-quarter adjusted EPS between a $0.10 loss and $0.10 profit and fourth-quarter EPS between breakeven and a $0.20 profit, but higher fuel prices remain a material headwind and 2027 growth plans remain dependent on oil prices and market conditions.

Frontier Group Stock Performance

Shares of ULCC traded up $0.03 on Friday, reaching $7.01. The company’s stock had a trading volume of 235,778 shares, compared to its average volume of 4,711,761. The stock’s 50 day simple moving average is $6.54 and its two-hundred day simple moving average is $5.18. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.49 and a quick ratio of 0.44. The stock has a market capitalization of $1.61 billion, a P/E ratio of -4.18 and a beta of 2.56. Frontier Group has a 12-month low of $3.02 and a 12-month high of $8.40.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ULCC. Citigroup raised their target price on shares of Frontier Group from $5.00 to $9.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. Weiss Ratings restated a “sell (d)” rating on shares of Frontier Group in a research note on Tuesday, May 19th. Barclays increased their target price on Frontier Group from $4.00 to $7.00 and gave the stock an “underweight” rating in a research note on Thursday, June 25th. Susquehanna upped their price target on shares of Frontier Group from $4.50 to $7.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. Finally, UBS Group increased their price objective on shares of Frontier Group from $4.00 to $7.00 and gave the company a “neutral” rating in a research report on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $6.86.

Insider Buying and Selling at Frontier Group

In other Frontier Group news, CAO Josh A. Wetzel sold 13,500 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $4.75, for a total value of $64,125.00. Following the transaction, the chief accounting officer directly owned 12,061 shares in the company, valued at approximately $57,289.75. This trade represents a 52.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Group Holdings – Frontier Llc sold 11,700,000 shares of Frontier Group stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $7.20, for a total transaction of $84,240,000.00. Following the transaction, the insider owned 22,706,526 shares in the company, valued at $163,486,987.20. This represents a 34.01% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 11,811,670 shares of company stock valued at $84,843,756 in the last quarter. Insiders own 48.00% of the company’s stock.

Institutional Trading of Frontier Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Balyasny Asset Management L.P. purchased a new position in shares of Frontier Group during the 2nd quarter valued at about $5,387,000. Bank of America Corp DE lifted its holdings in Frontier Group by 39.2% during the third quarter. Bank of America Corp DE now owns 3,027,309 shares of the company’s stock valued at $13,366,000 after purchasing an additional 852,798 shares in the last quarter. HRT Financial LP lifted its holdings in Frontier Group by 932.1% during the fourth quarter. HRT Financial LP now owns 817,425 shares of the company’s stock valued at $3,850,000 after purchasing an additional 738,228 shares in the last quarter. First Trust Advisors LP bought a new position in shares of Frontier Group in the fourth quarter worth approximately $3,351,000. Finally, Marshall Wace LLP boosted its position in shares of Frontier Group by 441.0% in the fourth quarter. Marshall Wace LLP now owns 853,150 shares of the company’s stock worth $4,018,000 after purchasing an additional 695,449 shares during the period.

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.