DENVER – October 29, 2026 -- Frontier Group Holdings (Nasdaq: ULCC) reported record third-quarter 2026 revenue of approximately $1.4 billion, up 53 percent year-over-year, and returned to an adjusted profit of $40 million despite a 56 percent jump in per-gallon fuel costs.
Adjusted net income was $0.18 per diluted share on about 233 million weighted-average shares. The company said this significantly exceeded its guidance, even though average fuel prices ran $0.26 per gallon above the level assumed when guidance was issued. On a GAAP basis, Frontier posted a net loss of $104 million.
RASM rises 30 percent to 11.87 cents on 18 percent more capacity
Frontier grew capacity to 11.4 billion available seat miles, 18 percent above the third quarter of 2025, at an average stage length of 891 miles and a flown load factor of 79 percent. RASM reached 11.87 cents, well above the guidance range. CEO Jimmy Dempsey attributed the result to strong travel demand and ongoing revenue management initiatives.
Fuel costs add roughly $150 million year-over-year
Fuel expense totaled $425 million at an average of $3.96 per gallon. The 56 percent per-gallon increase added approximately $150 million in costs on current-quarter consumption.
Total adjusted operating expenses were approximately $1.3 billion, or 11.56 cents per ASM. Excluding fuel, adjusted costs were $896 million, or 7.40 cents per ASM, stage-adjusted to 1,000 miles.
Liquidity holds at $1.18 billion, about 25 percent of trailing revenue
Total liquidity at September 30 was $1.18 billion, up slightly from the prior quarter. It consists of unrestricted cash and cash equivalents plus availability under the revolving credit facility, and equals approximately 25 percent of trailing 12-month adjusted revenue.
Frontier swaps 13 A320neo leases for 10 A321neo direct leases
The airline ended the quarter with 164 Airbus single-aisle aircraft, all on operating leases expiring between 2026 and 2038. It took delivery of one A320neo and three A321neo aircraft in the quarter.
Frontier agreed to return 13 A320neo aircraft early in the second half of 2026. Five went back in the third quarter and the rest in October. It will replace that capacity with 10 A321neo aircraft leased directly from AerCap, with all deliveries due by the first quarter of 2027.
In the fourth quarter, Frontier expects two A321neo deliveries previously scheduled for the third quarter, three A321neo aircraft that are being sold to Avolon, and five of the ten AerCap direct-lease aircraft. The remaining five AerCap aircraft are slated for the first quarter of 2027.
Fourth-quarter guidance calls for RASM up more than 20 percent
Frontier forecasts fourth-quarter RASM up over 20 percent year-over-year, with capacity growing 5 to 6 percent. It flagged elevated fuel prices as an expected cost headwind.
The airline produced 107 ASMs per gallon in the third quarter, which it says is a fuel-efficiency advantage of more than 40 percent over major U.S. carriers.