Frontier (ULCC) Q1 2026 earnings summary

Executive summary

• Achieved record adjusted revenue of nearly $1.1 billion in Q1 2026, up 17% year-over-year, driven by strong demand and commercial execution, despite 1% lower capacity.

• Adjusted net loss was $68 million ($0.30 per share), outperforming guidance, while GAAP net loss was $272 million due to $212 million in non-recurring charges for early lease termination and a TSA fee reserve.

• Responded to Spirit's shutdown by expanding service on 18 former Spirit routes and offering discounted fares to affected customers.

• Loyalty programs grew over 30% in Q1, marking the fourth consecutive quarter of double-digit growth.

• Achieved 106 available seat miles per gallon, maintaining a 40% fuel efficiency advantage over major U.S. carriers.

Financial highlights

• Q1 adjusted revenue reached a company record, with adjusted revenue per passenger up 10% year-over-year to $128.

• Total operating revenue was $992 million (GAAP), up 9% year-over-year.

• Adjusted pre-tax loss was $69 million and adjusted net loss was $68 million, with adjusted loss per share of $0.30, favorable to guidance.

• Total adjusted operating expenses were $1.1 billion, including $268 million in fuel at $2.88 per gallon.

• Liquidity at quarter-end was $974 million, including $754 million in cash and equivalents, expected to be $900–$950 million at Q2 end.

Outlook and guidance

• Q2 RASM expected to increase over 20% year-over-year, with stage-adjusted RASM up high teens and capacity growth of 6–8%.

• Q2 2026 adjusted diluted loss per share expected between $(0.45) and $(0.60).

• Anticipates recapturing 35–45% of fuel price increases in Q2, progressing to near full recapture by year-end.

• Full-year EPS guidance will be provided once macro visibility improves.

• Full-year 2026 pre-delivery deposit balance expected to decrease by $170–$210 million.