10-Q · May 5, 2026
Frontier Group Holdings reported a significant increase in revenues for Q1 2026, totaling $992 million, a 9% year-over-year rise. However, the company incurred a substantial net loss of $272 million, significantly…
Earnings analysis · 10-Q
ULCC earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Frontier delivered record Q2 revenue of $1.279 billion, up 38% year over year, with RASM up 28% and a sequential improvement in diluted EPS to a $0.39 loss from a $1.18 loss in Q1. However, the GAAP net loss widened to…
Read full summary
Frontier delivered record Q2 revenue of $1.279 billion, up 38% year over year, with RASM up 28% and a sequential improvement in diluted EPS to a $0.39 loss from a $1.18 loss in Q1. However, the GAAP net loss widened to $90 million from $70 million a year ago as fuel expense rose 90% and the early return of 24 aircraft generated a $70 million quarterly charge. Liquidity and operating cash flow improved materially, but the decline in equity, higher leverage, substantial aircraft commitments, and TSA-related reserves temper the operating recovery.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.39
- Operating margin
- -7.6%
What stood out
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Record revenue and sharply higher unit revenue
Q2 operating revenue reached a record $1.279 billion, up $350 million (38%) from $929 million a year earlier and up from $992 million in Q1 2026. RASM rose 28% to 11.52 cents, driven by a 20% increase in revenue per passenger and a 1.0-point load-factor increase to 80.3%.
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Sequential EPS recovery despite GAAP loss
The GAAP diluted loss improved sequentially to $0.39 per share from $1.18 in Q1 2026, while coming in narrower than the $0.50 consensus loss. Adjusted net loss was $22 million, versus the reported $90 million GAAP loss after $70 million of early-return costs.
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Passenger and ancillary-related revenue growth
Passenger revenue increased 38% to $1.235 billion, supported by a 14% increase in passengers to 9.730 million and a 54% increase in fare revenue per passenger to $63.04. Other revenue grew 42% to $44 million.
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Cash generation and liquidity improved
Operating cash flow swung to a $191 million inflow for the first six months of 2026 from a $219 million outflow a year earlier. Cash and cash equivalents increased to $955 million at June 30 from $671 million at December 31, 2025.
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Liquidity backstop enhanced
Liquidity totaled $1.156 billion, comprising $936 million of unrestricted cash and $220 million of undrawn revolver capacity. Barclays extended the co-brand card and pre-purchased-miles arrangements to June 30, 2037 and expanded the miles facility to $375 million from $200 million.
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Underlying nonfuel cost growth moderated
Core adjusted cost pressure was more contained than GAAP costs: adjusted CASM ex-fuel increased 5% to 7.84 cents, compared with a 13% increase in unadjusted CASM ex-fuel to 8.46 cents.
What to watch
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GAAP loss persists despite revenue growth
Profitability remained negative: the $90 million Q2 net loss widened from a $70 million loss a year earlier, and operating margin was approximately negative 7.6% versus negative 8.1% in Q2 2025. Total operating expenses rose 37% to $1.376 billion.
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Fuel-price exposure intensified
Fuel expense increased $206 million, or 90%, to $436 million as fuel cost per gallon rose 77% to $4.17. Based on first-half consumption, a further 10% fuel-price increase would add approximately $70 million of expense.
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Aircraft lease-return charges weigh on results
The early return of 24 A320neo aircraft created a $70 million Q2 charge and $209 million of first-half charges, including $79 million of lease-return costs and $73 million of prepaid-maintenance write-offs in the first half.
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TSA and tax regulatory exposures
The company recorded a $73 million TSA reserve for prior audit periods after losing an appeal, and received a preliminary $42 million assessment for the 2019-2022 TSA audit. It also cites a revised preliminary federal excise-tax assessment of $133 million.
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Leverage increased and commitments remain large
Stockholders' equity fell to $136 million from $491 million at year-end, while debt to capital increased to 79% from 56%. Total material cash requirements are $17.516 billion, including $10.414 billion of flight-equipment purchase obligations.
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Working-capital deficit widened
Working capital excluding cash, current debt maturities, and operating leases was negative $930 million at June 30, versus negative $736 million at year-end. Accounts receivable increased $62 million in the first half, while other long-term assets increased $114 million.
Management's outlook
The 10-Q does not provide quantitative forward EPS or revenue guidance. Quantitative outlook was deferred to the earnings release/call.
Earlier filings 4
10-K · February 18, 2026
Frontier reported Q4 2025 revenue of $997,000,000 (vs. consensus $974,788,088) and GAAP diluted EPS of $0.23 (vs. est. $0.13), with operating margin improving to 4.9% in Q4. The company highlights a fuel-efficient…
10-Q · November 5, 2025
Frontier reported Q3 2025 operating revenue of $886 million and a GAAP net loss of $77 million (diluted EPS $(0.34)), driven by higher operating expenses and lower passenger revenue. Passenger revenues fell to $854…
10-Q · October 29, 2024
Frontier (ULCC) reported operating revenues of $935 million for the quarter ended September 30, 2024, up $52 million vs. Q3 2023. The company swung to operating income of $19 million from an operating loss of $(54)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.