Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $929 million, down 5% year-over-year with a 2% lower capacity compared to the prior year quarter [6][14] - RASM was $0.0901, while stage length adjusted RASM was $0.0874, slightly higher than the same period last year [6][14] - Adjusted non-fuel operating expenses were $774 million, or $0.75 per available seat mile, reflecting a significant increase due to reduced aircraft utilization and lower sale leaseback gains [13][14] - The company reported a pretax loss and net loss of $70 million, resulting in a net loss per share of $0.31 [14] Business Line Data and Key Metrics Changes - The company launched 35 new routes in Q2, including services to Seattle and Puerto Plata, aiming to penetrate large markets with limited ULCC service [7][8] - Co-brand loyalty revenue per passenger increased over 40% year-over-year, driven by greater card acquisition and spending [10] - The company expects mid to high single-digit RASM growth in Q3, supported by improving industry capacity and loyalty initiatives [5][8] Market Data and Key Metrics Changes - The company noted a greater reduction in competitive capacity in frontier markets compared to the industry average, which is expected to support RASM growth [5][22] - Immature market concentration is expected to trend toward low teens over the next six months, significantly lower than the prior year [9] Company Strategy and Development Direction - The company is focused on enhancing its loyalty initiatives and premium product offerings to support profitability in 2026 [5][10] - The strategy includes modernizing digital tools, distribution, and onboard experience, with a focus on premiumization [11][12] - The management believes that the domestic airline industry is currently oversupplied, and expects continued capacity reductions, which will benefit the company as a low-cost provider [57][96] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future sales trends, noting significant improvements in bookings and yields since mid-July [20][46] - The company is planning for a similar utilization level unless demand changes, with a focus on maintaining flexibility in capacity adjustments [38][90] - Management acknowledged the challenges faced in the first half of the year but highlighted a positive trajectory moving forward, particularly in September [76][78] Other Important Information - The company ended the quarter with $766 million in total liquidity, including $561 million in unrestricted cash [14] - The company has committed financing expected to boost liquidity by over $200 million by year-end [14] Q&A Session Summary Question: What does the path back to positive margins look like? - Management discussed the importance of sales trends and competitive capacity reductions, indicating a positive trajectory for RASM and profitability [18][22] Question: Do you have an early view on your capacity plans for 2026? - Management stated that capacity plans for 2026 have not been finalized and will depend on industry trends [28][29] Question: What does the capacity evolution look like with flat capacity in Q4? - Management indicated that reduced utilization on certain days is driving flat capacity, with expectations for slight positive or negative changes in the coming months [32][33] Question: Are you seeing an acceleration in yield improvement? - Management confirmed that yield improvements are driving double-digit revenue growth, with significant increases in load factors [42][43] Question: Why is the guidance range unusually wide? - Management explained that while trends are positive, recent volatility in consumer sentiment necessitated a cautious approach to guidance [50][53] Question: Is the domestic capacity losing money specific to Frontier? - Management indicated that the entire domestic market is currently unprofitable, with expectations for capacity reductions benefiting low-cost carriers like Frontier [56][57] Question: What are the strategic actions to drive outcomes? - Management highlighted the potential for consolidation in the industry and the importance of right-sizing capacity to align with demand [99][100]

Core Insights - Frontier Group Holdings reported a revenue of $929 million for the quarter ended June 2025, which is a decrease of 4.5% compared to the same period last year [1] - The company's EPS was -$0.31, a decline from $0.14 in the previous year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $933.63 million, resulting in a surprise of -0.5% [1] - The EPS surprise was -10.71%, with the consensus EPS estimate being -$0.28 [1] Financial Performance Metrics - Available seat miles (ASMs) were reported at 10.31 billion, exceeding the average estimate of 10.13 billion by three analysts [4] - Revenue passenger miles (RPMs) reached 8.18 billion, surpassing the average estimate of 7.97 billion [4] - Fuel cost per gallon was $2.36, lower than the average estimate of $2.39 [4] - Total revenue per available seat mile (RASM) was 9.01 cents, below the average estimate of 9.21 cents [4] - Load Factor was 79.3%, higher than the estimated 78.7% [4] - Adjusted CASM (excluding fuel) was 7.5 cents, slightly better than the average estimate of 7.54 cents [4] - Adjusted CASM was reported at 9.73 cents, compared to the average estimate of 9.8 cents [4] - Average stage length was 942.00 miles, exceeding the average estimate of 927.48 miles [4] - Operating revenues from passengers were $898 million, below the average estimate of $917.31 million, reflecting a year-over-year decline of 5.5% [4] - Operating revenues from other sources were $31 million, surpassing the estimated $22.74 million, marking a year-over-year increase of 34.8% [4] Stock Performance - Shares of Frontier Group have returned +3.3% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Frontier Group Holdings reported a quarterly loss of $0.31 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.28, and compared to earnings of $0.14 per share a year ago, indicating a significant decline [1] - The company posted revenues of $929 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.5%, and down from $973 million in the same quarter last year [2] - Over the last four quarters, Frontier Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Frontier Group shares have lost approximately 42.5% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The current status of estimate revisions for Frontier Group is unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $939.82 million, and for the current fiscal year, it is -$0.40 on revenues of $3.76 billion [7] - The outlook for the airline industry, where Frontier Group operates, is currently in the top 37% of Zacks industries, suggesting that the industry’s performance can significantly impact the stock [8] Industry Context - Surf Air Mobility Inc., another company in the same industry, is expected to report a quarterly loss of $1.09 per share, reflecting a year-over-year change of +44.4%, with revenues expected to be $25.9 million, down 20% from the previous year [9][10]

Part I. Financial Information [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) The company's unaudited financial statements show a net loss for the period and a decrease in cash and cash equivalents [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Change (millions) | | :-------------------------- | :----------------------- | :-------------------------- | :---------------- | | Cash and cash equivalents | $563 | $740 | $(177) | | Total current assets | $832 | $990 | $(158) | | Total assets | $6,524 | $6,153 | $371 | | Total current liabilities | $2,045 | $1,852 | $193 | | Total liabilities | $6,018 | $5,549 | $469 | | Total stockholders' equity | $506 | $604 | $(98) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total operating revenues | $929 | $973 | $1,841 | $1,838 | | Total operating expenses | $1,004 | $948 | $1,962 | $1,844 | | Operating income (loss) | $(75) | $25 | $(121) | $(6) | | Net income (loss) | $(70) | $31 | $(113) | $5 | | Basic EPS | $(0.31) | $0.14 | $(0.50) | $0.02 | | Diluted EPS | $(0.31) | $0.14 | $(0.50) | $0.02 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive Income (Loss) Summary | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net income (loss) | $(70) | $31 | $(113) | $5 | | Other comprehensive income (loss) | $— | $— | $— | $— | | Comprehensive income (loss) | $(70) | $31 | $(113) | $5 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary | Metric | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :---------------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash used in operating activities | $(219) | $(13) | | Net cash used in investing activities | $(113) | $(34) | | Net cash provided by financing activities | $155 | $96 | | Net increase (decrease) in cash and equivalents | $(177) | $49 | | Cash and equivalents, end of period | $563 | $658 | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total stockholders' equity **decreased to $506 million** at June 30, 2025, from $604 million at December 31, 2024, primarily due to a **net loss of $113 million**[13](index=13&type=chunk)[25](index=25&type=chunk) - The number of common shares outstanding **increased to 228.1 million** at June 30, 2025, from 225.4 million at December 31, 2024, due to stock unit vesting and option exercises[13](index=13&type=chunk)[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Summary of Significant Accounting Policies](index=11&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) - Frontier Group Holdings, Inc operates as a single business unit, providing ultra low-cost airline services to approximately 110 airports in the Americas[28](index=28&type=chunk)[29](index=29&type=chunk) - The condensed financial statements are prepared in accordance with GAAP, and interim results may not be indicative of full-year performance due to industry seasonality and volatility[27](index=27&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [2. Revenue Recognition](index=11&type=section&id=2.%20Revenue%20Recognition) - Air traffic liability **increased to $324 million** as of June 30, 2025, from $303 million at year-end 2024[33](index=33&type=chunk) Revenue by Type | Revenue Type | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------ | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Fare | $348 | $355 | $698 | $679 | | Non-fare passenger revenues | $550 | $595 | $1,084 | $1,116 | | Total passenger revenues | $898 | $950 | $1,782 | $1,795 | | Other revenues | $31 | $23 | $59 | $43 | | Total operating revenues | $929 | $973 | $1,841 | $1,838 | Revenue by Geographic Region | Geographic Region | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :---------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Domestic | $874 | $904 | $1,742 | $1,706 | | Latin America | $55 | $69 | $99 | $132 | | Total | $929 | $973 | $1,841 | $1,838 | [3. Other Current Assets](index=13&type=section&id=3.%20Other%20Current%20Assets) Other Current Assets Breakdown | Other Current Assets | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------- | :----------------------- | :--------------------------- | | Supplier incentives | $41 | $56 | | Prepaid expenses | $20 | $18 | | Forgivable loans | $15 | $16 | | Income tax and other taxes receivable | $4 | $4 | | Other | $5 | $4 | | Total | $85 | $98 | [4. Other Current Liabilities](index=13&type=section&id=4.%20Other%20Current%20Liabilities) Other Current Liabilities Breakdown | Other Current Liabilities | June 30, 2025 (millions) | December 31, 2024 (millions) | | :------------------------ | :----------------------- | :--------------------------- | | Passenger and other taxes and fees payable | $144 | $141 | | Salaries, wages and benefits | $117 | $120 | | Aircraft maintenance | $76 | $51 | | Station obligations | $75 | $80 | | Fuel liabilities | $32 | $39 | | Leased aircraft return costs | $17 | $20 | | Other current liabilities | $47 | $49 | | Total | $508 | $500 | [5. Debt](index=13&type=section&id=5.%20Debt) - The company has multiple pre-delivery credit facilities with a **total capacity of $476 million** for financing A320neo family aircraft PDPs[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - As of June 30, 2025, there were **no outstanding borrowings** under the $205 million Revolving Loan Facility[45](index=45&type=chunk) - The company was in **compliance with all debt covenants** as of June 30, 2025[48](index=48&type=chunk) Debt Composition | Debt Type | June 30, 2025 (millions) | December 31, 2024 (millions) | | :---------------------------- | :----------------------- | :--------------------------- | | Pre-delivery Credit Facilities | $386 | $329 | | Building notes | $12 | $12 | | Affinity card advance purchase of miles | $101 | $100 | | PSP promissory notes | $66 | $66 | | Total debt | $565 | $507 | | Long-term debt, net | $234 | $241 | Debt Maturity Schedule | Debt Maturity Year | Total (millions) | | :----------------- | :--------------- | | Remainder of 2025 | $182 | | 2026 | $191 | | 2027 | $13 | | 2028 | $9 | | 2029 | $93 | | Thereafter | $77 | | Total | $565 | [6. Operating Leases](index=15&type=section&id=6.%20Operating%20Leases) - As of June 30, 2025, the company leased **164 aircraft and 42 spare engines** under operating leases with remaining terms up to 12 years[49](index=49&type=chunk) - The company completed sale-leaseback transactions for seven aircraft in H1 2025, recognizing **gains of $90 million**[50](index=50&type=chunk) - Aircraft rent expense **increased by 32% to $194 million** for Q2 2025, primarily due to a larger fleet and higher lease return costs[51](index=51&type=chunk) Lease Cost Summary | Lease Cost Type | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :---------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Operating lease cost | $181 | $155 | $362 | $302 | | Variable lease cost | $122 | $94 | $226 | $173 | | Total lease costs | $303 | $249 | $588 | $475 | [7. Stock-Based Compensation](index=17&type=section&id=7.%20Stock-Based%20Compensation) - During H1 2025, **1,562,533 stock options were exercised**, and **2,417,732 restricted stock units (RSUs) were issued**[61](index=61&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) Stock-Based Compensation Expense | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Stock-based compensation expense | $6 | $5 | $11 | $9 | [8. Commitments and Contingencies](index=18&type=section&id=8.%20Commitments%20and%20Contingencies) - The company has firm commitments to purchase **180 Airbus A320neo family aircraft** and 9 spare engines through 2031, with total commitments estimated at **$11.1 billion**[67](index=67&type=chunk)[69](index=69&type=chunk) - The company is cooperating with a DOT investigation and contesting a revised **federal excise tax assessment of $133 million**[70](index=70&type=chunk)[71](index=71&type=chunk) - As of June 30, 2025, approximately **87% of employees are union-represented**, with several collective bargaining agreements under negotiation[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) Aircraft and Engine Purchase Commitments | Year Ending | A320neo | A321neo Aircraft | Total Aircraft | Engines | | :---------------- | :------ | :--------------- | :------------- | :------ | | Remainder of 2025 | 7 | 6 | 13 | — | | 2026 | 8 | 15 | 23 | 4 | | 2027 | 8 | 26 | 34 | 3 | | 2028 | 4 | 30 | 34 | 2 | | 2029 | — | 36 | 36 | — | | Thereafter | — | 40 | 40 | — | | Total | 27 | 153 | 180 | 9 | [9. Earnings (Loss) per Share](index=21&type=section&id=9.%20Earnings%20(Loss)%20per%20Share) - Due to net losses in Q2 and H1 2025, diluted weighted-average shares outstanding were equal to basic shares as all equity awards were anti-dilutive[86](index=86&type=chunk) Earnings (Loss) per Share Calculation | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common stockholders | $(70) million | $31 million | $(113) million | $5 million | | Weighted-average common shares outstanding, basic | 227,941,534 | 224,214,030 | 227,307,480 | 223,822,565 | | Earnings (loss) per share, basic | $(0.31) | $0.14 | $(0.50) | $0.02 | | Weighted-average common shares outstanding, diluted | 227,941,534 | 226,603,798 | 227,307,480 | 226,203,376 | | Earnings (loss) per share, diluted | $(0.31) | $0.14 | $(0.50) | $0.02 | [10. Income Taxes](index=22&type=section&id=10.%20Income%20Taxes) - The effective tax rate for Q2 and H1 2025 was **0% and 2.7% respectively**, lower than the statutory rate due to a valuation allowance on net operating losses[89](index=89&type=chunk) - As of June 30, 2025, the company had a **valuation allowance of $45 million** against its deferred tax assets, an increase of $26 million since year-end 2024[90](index=90&type=chunk) [11. Fair Value Measurements](index=22&type=section&id=11.%20Fair%20Value%20Measurements) - Cash, cash equivalents, and restricted cash are categorized as **Level 1 instruments** carried at cost, which approximates fair value[95](index=95&type=chunk) - The estimated fair value of the company's debt is a **Level 3 measurement**, determined using a discounted cash flow method[96](index=96&type=chunk) Fair Value of Debt | Debt Type | June 30, 2025 Carrying Value (millions) | June 30, 2025 Estimated Fair Value (millions) | December 31, 2024 Carrying Value (millions) | December 31, 2024 Estimated Fair Value (millions) | | :---------------------------- | :-------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------------ | | Pre-delivery Credit Facilities | $386 | $391 | $329 | $333 | | Building notes | $12 | $12 | $12 | $12 | | Affinity card advance purchase of miles | $101 | $99 | $100 | $98 | | PSP Promissory Notes | $66 | $63 | $66 | $62 | | Total debt | $565 | $565 | $507 | $505 | [12. Related Parties](index=24&type=section&id=12.%20Related%20Parties) - Indigo Partners LLC, an affiliate of substantial stockholders, provides management services for a **quarterly fee of $1 million**[98](index=98&type=chunk) - The company maintains a codeshare agreement with Volaris, a Mexican airline with which it shares two board directors[99](index=99&type=chunk) [13. Subsequent Events](index=24&type=section&id=13.%20Subsequent%20Events) - In July 2025, the company executed an agreement with Pratt & Whitney for GTF engines to power **91 Airbus A321neo aircraft** and committed to **28 additional spare engines**[101](index=101&type=chunk) Revised Aircraft and Engine Purchase Commitments | Year Ending | A320neo | A321neo Aircraft | Total Aircraft | Engines | | :---------------- | :------ | :--------------- | :------------- | :------ | | Remainder of 2025 | 7 | 5 | 12 | 16 | | 2026 | 8 | 15 | 23 | 2 | | 2027 | 8 | 26 | 34 | 3 | | 2028 | 4 | 30 | 34 | 2 | | 2029 | — | 36 | 36 | 5 | | Thereafter | — | 40 | 40 | 9 | | Total | 27 | 152 | 179 | 37 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a net loss driven by lower revenues and higher non-fuel operating costs [Recent Developments](index=25&type=section&id=Recent%20Developments) - The company is monitoring macroeconomic conditions, including potential impacts from expanding tariffs on the transportation industry[104](index=104&type=chunk)[105](index=105&type=chunk) - Labor negotiations are ongoing with unions representing pilots, flight attendants, and other key employee groups[106](index=106&type=chunk) - The company received a revised **federal excise tax assessment of $133 million** in June 2025, which it is contesting[107](index=107&type=chunk) - FAA-mandated inspections of Pratt & Whitney GTF engines could temporarily ground aircraft and impact future capacity plans[108](index=108&type=chunk) [Overview](index=26&type=section&id=Overview) Key Financial and Operating Metrics | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total operating revenues | $929 | $973 | $1,841 | $1,838 | | Total operating expenses | $1,004 | $948 | $1,962 | $1,844 | | Income (loss) before income taxes | $(70) | $32 | $(110) | $8 | | ASMs | 10,313 | 10,552 | 20,262 | 19,998 | | Diluted EPS | $(0.31) | $0.14 | $(0.50) | $0.02 | [Revenues](index=26&type=section&id=Revenues) - Total operating revenues **decreased by 5% to $929 million** for Q2 2025, driven by a 2% moderation in capacity and a 2% decrease in RASM[111](index=111&type=chunk) - For H1 2025, total operating revenues were consistent at $1,841 million, as a 1% capacity increase was offset by a 1% RASM decrease[112](index=112&type=chunk) Q2 Operating Statistics | Operating Statistic | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | | :------------------------ | :------------------------------- | :------------------------------- | :--------- | | ASMs (millions) | 10,313 | 10,552 | (2)% | | RASM (¢) | 9.01 | 9.21 | (2)% | | Passengers (thousands) | 8,499 | 8,899 | (4)% | | Total ancillary revenue per passenger ($) | 68.33 | 69.34 | (1)% | | Total revenue per passenger ($) | 109.27 | 109.25 | —% | H1 Operating Statistics | Operating Statistic | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :------------------------ | :----------------------------- | :----------------------------- | :--------- | | ASMs (millions) | 20,262 | 19,998 | 1% | | RASM (¢) | 9.08 | 9.19 | (1)% | | Passengers (thousands) | 16,338 | 15,904 | 3% | | Total ancillary revenue per passenger ($) | 69.96 | 72.86 | (4)% | | Total revenue per passenger ($) | 112.66 | 115.54 | (2)% | [Operating Expenses](index=26&type=section&id=Operating%20Expenses) - Total operating expenses **increased by 6% to $1,004 million** for Q2 2025, resulting in an 8% increase in CASM to 9.73¢[113](index=113&type=chunk) - **Non-fuel expenses increased by 17%** for Q2 2025, driven by higher aircraft rent, lower sale-leaseback gains, and increased station costs[114](index=114&type=chunk) - For H1 2025, total operating expenses **increased by 6% to $1,962 million**, with CASM increasing by 5% to 9.68¢[115](index=115&type=chunk) Q2 Operating Expenses | Operating Expense Category | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Change (millions) | Change (%) | | :------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------- | :--------- | | Aircraft fuel | $230 | $288 | $(58) | (20)% | | Salaries, wages and benefits | $254 | $244 | $10 | 4% | | Aircraft rent | $194 | $147 | $47 | 32% | | Station operations | $178 | $163 | $15 | 9% | | Maintenance, materials and repairs | $47 | $42 | $5 | 12% | | Sales and marketing | $39 | $47 | $(8) | (17)% | | Depreciation and amortization | $21 | $18 | $3 | 17% | | Other operating | $41 | $(1) | $42 | N/M | | Total operating expenses | $1,004 | $948 | $56 | 6% | H1 Operating Expenses | Operating Expense Category | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | Change (millions) | Change (%) | | :------------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :--------- | | Aircraft fuel | $468 | $551 | $(83) | (15)% | | Salaries, wages and benefits | $503 | $477 | $26 | 5% | | Aircraft rent | $355 | $306 | $49 | 16% | | Station operations | $358 | $300 | $58 | 19% | | Maintenance, materials and repairs | $98 | $91 | $7 | 8% | | Sales and marketing | $80 | $87 | $(7) | (8)% | | Depreciation and amortization | $41 | $34 | $7 | 21% | | Other operating | $59 | $(2) | $61 | N/M | | Total operating expenses | $1,962 | $1,844 | $118 | 6% | [Net Income (Loss)](index=27&type=section&id=Net%20Income%20(Loss)) - The company reported a **net loss of $70 million** for Q2 2025, compared to net income of $31 million in the prior year period[118](index=118&type=chunk) - For H1 2025, the **net loss was $113 million**, a significant decline from net income of $5 million in the prior year period[119](index=119&type=chunk) [Liquidity](index=27&type=section&id=Liquidity) - As of June 30, 2025, total available liquidity was **$766 million**, including $561 million in unrestricted cash and $205 million from an undrawn credit facility[121](index=121&type=chunk) [Reconciliation of Non-GAAP Measures](index=33&type=section&id=Reconciliation%20of%20CASM%20to%20CASM%20(excluding%20fuel),%20Adjusted%20CASM%20(excluding%20fuel),%20Adjusted%20CASM,%20Adjusted%20CASM%20including%20net%20interest%20and%20CASM%20including%20net%20interest) - For all periods presented, there were **no non-GAAP pre-tax adjustments** for CASM, Adjusted CASM, EBITDA, or EBITDAR reconciliations[147](index=147&type=chunk)[149](index=149&type=chunk)[154](index=154&type=chunk) Non-GAAP Cost Metrics | Metric (Per ASM) | Three Months Ended June 30, 2025 (¢) | Three Months Ended June 30, 2024 (¢) | Six Months Ended June 30, 2025 (¢) | Six Months Ended June 30, 2024 (¢) | | :------------------------ | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | CASM | 9.73 | 8.98 | 9.68 | 9.22 | | CASM (excluding fuel) | 7.50 | 6.24 | 7.37 | 6.46 | | Adjusted CASM | 9.73 | 8.98 | 9.68 | 9.22 | | Adjusted CASM + net interest | 9.68 | 8.90 | 9.62 | 9.15 | Non-GAAP Profitability Metrics | Metric (millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(70) | $31 | $(113) | $5 | | Adjusted net income (loss) | $(70) | $31 | $(113) | $10 | | EBITDA | $(54) | $43 | $(80) | $28 | | EBITDAR | $140 | $190 | $275 | $334 | [Comparative Operating Statistics](index=37&type=section&id=Comparative%20Operating%20Statistics) Q2 Comparative Operating Statistics | Operating Statistic | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | | :------------------------------ | :------------------------------- | :------------------------------- | :--------- | | ASMs (millions) | 10,313 | 10,552 | (2)% | | Departures | 52,147 | 57,176 | (9)% | | Average aircraft in service | 163 | 145 | 12% | | Average daily aircraft utilization (hours) | 9.7 | 11.2 | (13)% | | Passengers (thousands) | 8,499 | 8,899 | (4)% | | Load Factor | 79.3% | 78.1% | 1.2 pts | | Fuel cost per gallon ($) | 2.36 | 2.84 | (17)% | H1 Comparative Operating Statistics | Operating Statistic | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :------------------------------ | :----------------------------- | :----------------------------- | :--------- | | ASMs (millions) | 20,262 | 19,998 | 1% | | Departures | 103,505 | 105,842 | (2)% | | Average aircraft in service | 158 | 141 | 12% | | Average daily aircraft utilization (hours) | 9.7 | 10.9 | (11)% | | Passengers (thousands) | 16,338 | 15,904 | 3% | | Load Factor | 77.2% | 75.5% | 1.7 pts | | Fuel cost per gallon ($) | 2.45 | 2.88 | (15)% | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) - Total available liquidity was **$766 million** as of June 30, 2025, including $561 million in unrestricted cash and $205 million in undrawn credit capacity[159](index=159&type=chunk) - The company had **$560 million in total debt, net**, with $326 million classified as short-term[159](index=159&type=chunk) - During H1 2025, **1,244,608 warrants were exercised**, with 1,873,332 warrants remaining outstanding[160](index=160&type=chunk) - **Net cash used in operating activities increased significantly to $219 million** for H1 2025, driven by a net loss and changes in working capital[170](index=170&type=chunk) - **Net cash used in investing activities increased to $113 million** for H1 2025, due to pre-delivery deposits and capital expenditures[173](index=173&type=chunk) - **Net cash provided by financing activities increased to $155 million** for H1 2025, from debt issuances and sale-leaseback transactions[173](index=173&type=chunk) Material Cash Requirements | Material Cash Requirements | Remainder of 2025 (millions) | 2026 (millions) | 2027 (millions) | 2028 (millions) | 2029 (millions) | Thereafter (millions) | Total (millions) | | :------------------------- | :--------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------------- | :--------------- | | Debt obligations | $182 | $191 | $13 | $9 | $93 | $77 | $565 | | Interest commitments | $15 | $18 | $12 | $11 | $8 | $4 | $68 | | Operating lease obligations | $363 | $720 | $712 | $657 | $582 | $2,696 | $5,730 | | Flight equipment purchase obligations | $753 | $1,384 | $2,058 | $2,114 | $2,265 | $2,549 | $11,123 | | Total | $1,313 | $2,313 | $2,795 | $2,791 | $2,948 | $5,326 | $17,486 | [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been **no material changes** in critical accounting policies and estimates during the six months ended June 30, 2025[176](index=176&type=chunk) [Recently Adopted Accounting Pronouncements](index=42&type=section&id=Recently%20Adopted%20Accounting%20Pronouncements) - Information regarding recently adopted accounting pronouncements is referenced in the company's 2024 Annual Report on Form 10-K[177](index=177&type=chunk) [Glossary of Airline Terms](index=43&type=section&id=Glossary%20of%20Airline%20Terms) This section defines key industry-specific terms used in the report to aid reader comprehension [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There have been no material changes to the market risk disclosures from the 2024 Annual Report - **No material changes** in market risk from the information provided in the 2024 Annual Report[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025 - Disclosure controls and procedures were evaluated as **effective** at the reasonable assurance level as of June 30, 2025[202](index=202&type=chunk) - **No material changes** in internal control over financial reporting occurred during the three months ended June 30, 2025[203](index=203&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company faces various legal proceedings not expected to materially impact its financial condition - Management believes the ultimate outcome of legal proceedings will **not materially adversely affect** the company's business, results of operations, or financial condition[205](index=205&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the 2024 Annual Report - **No material changes** to the risk factors disclosed in the 2024 Annual Report[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or share repurchases during the period - **No unregistered sales** of equity securities or use of proceeds occurred[207](index=207&type=chunk)[208](index=208&type=chunk) - The company does not have a share repurchase program and **did not repurchase any shares** during the second quarter of 2025[209](index=209&type=chunk) [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - **No defaults** upon senior securities occurred[210](index=210&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company - Mine safety disclosures are **not applicable**[211](index=211&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section discloses the termination of a Rule 10b5-1(c) trading arrangement by the CEO - On May 12, 2025, CEO Barry Biffle **terminated a Rule 10b5-1(c) trading arrangement** for the sale of up to 2,164,580 shares of common stock[212](index=212&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key corporate documents and certifications - Exhibits include Amended and Restated Certificate of Incorporation and Bylaws, Form of Common Stock Certificate and Warrant, and **Certifications of CEO and CFO**[215](index=215&type=chunk) [Signature](index=48&type=section&id=Signature) The report is certified by the Senior Vice President and Chief Financial Officer as of August 5, 2025 - The report was signed by **Mark C. Mitchell, Senior Vice President and Chief Financial Officer**, on August 5, 2025[219](index=219&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Frontier Airlines' Q2 2025 performance, operational highlights, and CEO commentary are presented, emphasizing strategic progress despite challenges [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Frontier Airlines' Q2 2025 results met expectations, driven by fleet modernization, new loyalty benefits, and route expansion, despite operational challenges Q2 2025 Financial and Operational Metrics | Metric | Q2 2025 | Change vs. Q2 2024 | | :----- | :------ | :----------------- | | Total Revenue | $929 million | 2% lower capacity | | RASM (stage-adjusted) | 8.74 cents | Up slightly | | CASM | 9.73 cents | 8% above | | Net Loss | $70 million | N/A (was profit) | | EPS | $(0.31) | N/A (was profit) | | Total Liquidity | $766 million | | | A321neo Deliveries | 3 aircraft | | | A320neo Family Fleet | 84% of fleet | Highest among major U.S. carriers | | ASMs per gallon | 106 | 2% higher than Q2 2024 | | Cardholder Spending | | 19% increase | | New Routes Launched | 35 | | - The company launched previously announced Frontier Elite Platinum and Diamond member free unlimited companion travel benefits, along with other significant loyalty enhancements, supporting a **19% year-over-year increase** in cardholder spending[4](index=4&type=chunk) - The company launched **35 new routes** and announced expanded service in the Eastern and Midwestern U.S., including direct flights between Baltimore-Chicago O'Hare, Myrtle Beach-Trenton, and nine new routes from Atlanta[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Barry Biffle affirmed Q2 results met expectations, projecting improved domestic supply-demand, mid-to-high single-digit RASM growth in Q3, and a strong foundation for 2026 profitability - Q2 performance was within guidance, overcoming severe adverse weather and widespread air traffic control delays in late May and June[3](index=3&type=chunk) - Domestic supply-demand balance in Frontier markets is expected to gradually improve in the coming months, with commercial initiatives supporting **mid-to-high single-digit stage-adjusted RASM growth** in Q3[3](index=3&type=chunk) - A solid foundation for **2026 profitability** is anticipated[3](index=3&type=chunk) [Financial Performance (Q2 2025 & YTD)](index=2&type=section&id=Financial%20Performance%20(Q2%202025%20%26%20YTD)) This section details Frontier Airlines' Q2 2025 and year-to-date financial results, including revenue, cost, profitability, and liquidity performance [Select Financial Highlights (GAAP & Non-GAAP)](index=2&type=section&id=Select%20Financial%20Highlights%20(GAAP%20%26%20Non-GAAP)) Q2 2025 total operating revenues decreased **5%** to **$929 million**, while expenses increased **6%** to **$1.004 billion**, leading to a **$70 million** net loss, a reversal from Q2 2024's profit Select Financial Highlights (GAAP & Non-GAAP) | Metric | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Change (YoY) | YTD 2025 (GAAP) | YTD 2024 (GAAP) | Change (YoY) | | :---------------------- | :------------- | :------------- | :----------- | :-------------- | :-------------- | :----------- | | Total operating revenues | $929 million | $973 million | (5)% | $1,841 million | $1,838 million | —% | | Total operating expenses | $1,004 million | $948 million | 6% | $1,962 million | $1,844 million | 6% | | Pre-tax income (loss) | $(70) million | $32 million | N/M | $(110) million | $8 million | N/M | | Net income (loss) | $(70) million | $31 million | N/M | $(113) million | $5 million | N/M | | Earnings per share, diluted | $(0.31) | $0.14 | N/M | $(0.50) | $0.02 | N/M | - This summary includes financial results for both GAAP and adjusted (non-GAAP) metrics; reconciliations for non-GAAP financial information are provided in the appendix[5](index=5&type=chunk) [Revenue Performance](index=2&type=section&id=Revenue%20Performance) Q2 2025 total operating revenue decreased **5%** to **$929 million**, impacted by **2%** lower capacity, disrupted demand, and operational delays, with RASM declining **2%** but stage-adjusted RASM slightly up - Total operating revenue for Q2 2025 was **$929 million**, a **5% decrease** from Q2 2024, primarily due to a **2% capacity reduction**, disrupted domestic air travel demand in April, and severe weather and air traffic control (ATC) ground delay programs[6](index=6&type=chunk) Q2 2025 Revenue Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | RASM | 9.01 cents | 9.21 cents | (2)% | | RASM (stage-adjusted to 1,000 miles) | 8.74 cents | 8.73 cents | —% | | Enplanements | 8,499 thousand | 8,899 thousand | (4)% | | Departures | 52,147 | 57,176 | (9)% | | Average stage length | 942 miles | 899 miles | 5% | | Total revenue per passenger | $109.27 | $109.25 | —% | | Flown load factor | 79.3% | 78.1% | 1.2 pts | - Stage-adjusted RASM to 1,000 miles slightly increased year-over-year, despite the aforementioned operational factors[7](index=7&type=chunk) [Cost Performance](index=3&type=section&id=Cost%20Performance) Q2 2025 total operating expenses rose **6%** to **$1 billion**, with non-fuel CASM increasing **20%** to **7.50 cents**, driven by lower aircraft utilization, fleet growth, and reduced sale-leaseback gains Q2 2025 Cost Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | Total operating expenses | $1 billion | $948 million | 6% | | Fuel expense | $230 million | $288 million | (20)% | | Average fuel cost per gallon | $2.36 | $2.84 | (17)% | | Operating expenses (excl. fuel) | $774 million | $660 million | 17.3% | | CASM | 9.73 cents | 8.98 cents | 8% | | CASM (excluding fuel) | 7.50 cents | 6.24 cents | 20% | - The increase in non-fuel CASM was primarily attributed to a **13% decrease** in average daily aircraft utilization, resulting from disciplined capacity deployment, fleet growth, and reduced sale-leaseback gains due to aircraft and spare engine delivery timing[10](index=10&type=chunk) [Earnings & Profitability](index=3&type=section&id=Earnings%20%26%20Profitability) Frontier Airlines reported a **$70 million** net loss in Q2 2025, resulting in a **$(0.31)** diluted loss per share, a significant shift from Q2 2024's net income Q2 2025 Earnings & Profitability | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------------- | :------ | :------ | :----------- | | Net loss | $70 million | $31 million (income) | N/M | | Diluted EPS | $(0.31) | $0.14 | N/M | | Weighted-average shares outstanding | 228 million | 227 million | 0.4% | [Liquidity](index=3&type=section&id=Liquidity) As of June 30, 2025, Frontier Airlines maintained **$766 million** in total liquidity, including **$561 million** in unrestricted cash and **$205 million** in undrawn credit facility availability Liquidity as of June 30, 2025 | Metric | As of June 30, 2025 | | :-------------------------------- | :------------------ | | Total liquidity | $766 million | | Unrestricted cash and cash equivalents | $561 million | | Undrawn revolving credit facility availability | $205 million | - Total liquidity comprises unrestricted cash and cash equivalents and the company's undrawn revolving credit facility availability[12](index=12&type=chunk) [Operational Performance & Fleet](index=3&type=section&id=Operational%20Performance%20%26%20Fleet) This section reviews Frontier Airlines' operational metrics, including capacity, load factor, and fuel efficiency, alongside fleet developments and modernization efforts [Operational Highlights](index=3&type=section&id=Operational%20Highlights) Q2 2025 saw ASMs decrease **2%** and departures fall **9%**, yet load factor improved **1.2 percentage points** to **79.3%**, with **106 ASMs per gallon** reinforcing environmental leadership - Available Seat Miles (ASMs) were **10.313 billion**, a **2% year-over-year decrease**[30](index=30&type=chunk) - Departures totaled **52,147**, a **9% year-over-year decrease**[30](index=30&type=chunk) - Load factor was **79.3%**, an improvement of **1.2 percentage points** year-over-year[30](index=30&type=chunk) - **106 ASMs per gallon** were generated, a **2% improvement** from Q2 2024, reaffirming Frontier's position as 'America's Greenest Airline'[4](index=4&type=chunk)[16](index=16&type=chunk) - Average daily aircraft utilization was **9.7 hours**, a **13% year-over-year decrease**[30](index=30&type=chunk) [Fleet & Fuel Efficiency](index=4&type=section&id=Fleet%20%26%20Fuel%20Efficiency) As of June 30, 2025, Frontier operated **164 Airbus aircraft**, with **84%** being A320neo family, the highest among major U.S. carriers, and committed to **180 additional deliveries** by 2031, including a new engine agreement Fleet Composition as of June 30, 2025 | Equipment | Quantity (as of June 30, 2025) | Seats | | :-------- | :----------------------------- | :---- | | A320neo | 82 | 186 | | A320ceo | 6 | 180 - 186 | | A321ceo | 21 | 230 | | A321neo | 55 | 240 | | Total fleet | 164 | | - **Three A321neo aircraft** were delivered in Q2 2025[4](index=4&type=chunk)[14](index=14&type=chunk) - As of June 30, 2025, **84%** of the company's fleet consisted of fuel-efficient A320neo family aircraft, the highest proportion among all major U.S. carriers[4](index=4&type=chunk)[15](index=15&type=chunk) - The company committed to **180 additional aircraft deliveries** by 2031, with A321neo aircraft accounting for approximately **85%** of future committed deliveries[14](index=14&type=chunk) - On July 23, 2025, the company signed an agreement with Pratt & Whitney for PW1100 GTF engines to power **91 Airbus A321neo** firm order aircraft, with initial deliveries expected in late 2026[4](index=4&type=chunk)[17](index=17&type=chunk) [Outlook & Company Information](index=4&type=section&id=Outlook%20%26%20Company%20Information) This section presents Frontier Airlines' Q3 2025 guidance, a company overview, and a cautionary statement regarding forward-looking statements and associated risks [Third Quarter 2025 Guidance](index=4&type=section&id=Third%20Quarter%202025%20Guidance) Frontier projects a Q3 2025 adjusted (non-GAAP) loss per share between **$(0.26)** and **$(0.42)**, reflecting improved competitive capacity, commercial initiatives, and higher fuel prices, with capacity down **4% to 5%** Third Quarter 2025 Guidance | Metric | Third Quarter 2025 Guidance | | :-------------------------- | :-------------------------- | | Adjusted (non-GAAP) loss per share | $(0.26) to $(0.42) | | Capacity (YoY change) | Down 4% to 5% | | Average fuel cost per gallon | $2.51 | | Estimated weighted average shares outstanding | 228 million | | Projected tax expense provision | $2 to $4 million | - Guidance reflects anticipated sequential improvement in competitive overlapping capacity, ongoing progress on key commercial initiatives, and higher fuel prices compared to the prior quarter[20](index=20&type=chunk) - The company will continue to monitor the demand environment closely and make further adjustments to capacity and related costs as appropriate[20](index=20&type=chunk) [About Frontier Airlines](index=4&type=section&id=About%20Frontier%20Airlines) Frontier Airlines, headquartered in Denver, Colorado, operates **164 A320 family aircraft** with the largest A320neo fleet in the U.S., emphasizing fuel efficiency and affordable travel with **180 new Airbus aircraft** on order - Frontier Airlines is committed to 'Low Fares Done Right'[23](index=23&type=chunk) - Headquartered in Denver, Colorado, operating **164 A320 family aircraft**, with the largest A320neo family fleet in the U.S.[23](index=23&type=chunk) - Through these aircraft, high-density seating, and weight reduction initiatives, Frontier is the **most fuel-efficient** among all major U.S. airlines in terms of ASMs per gallon of fuel consumed[23](index=23&type=chunk) - With **180 new Airbus aircraft** on order, the company will continue to grow to fulfill its mission of providing affordable travel across America[23](index=23&type=chunk) [Forward-Looking Statements & Risks](index=5&type=section&id=Forward-Looking%20Statements%20%26%20Risks) This section provides a cautionary statement regarding forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections, with no obligation to update - Certain statements in this press release are considered forward-looking, based on current expectations and beliefs regarding future events and anticipated financial and operational performance[25](index=25&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law[25](index=25&type=chunk) - Actual results may differ materially from these forward-looking statements due to numerous risks and uncertainties related to the company's operations and business environment[26](index=26&type=chunk) - Key risk factors include adverse economic and political conditions, intense airline industry competition, flight operation disruptions (e.g., severe weather or ATC shortages), ability to attract and retain qualified personnel, high and/or volatile fuel prices, reliance on technology and automated systems, dependence on third-party service providers, negative publicity and/or brand reputation damage, terrorist attacks or security incidents, increased privacy and data security obligations, changes in industry alliances and joint venture arrangements, network strategy changes, reliance on a single aircraft and engine supplier, increased inspection programs and maintenance requirements, labor disputes, major airport service disruptions, seasonality, impairment of intangible or long-lived assets, government regulatory compliance costs, environmental regulations and climate change-related risks, inability to receive or integrate new aircraft as planned, high financial leverage, failure to comply with financing agreement covenants, changes in senior management or key employees, current or future litigation and regulatory actions, and increased insurance costs[26](index=26&type=chunk) [Financial Statements & Reconciliations](index=6&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents Frontier Airlines' unaudited condensed consolidated financial statements and detailed reconciliations of non-GAAP financial measures to their GAAP equivalents - Non-GAAP financial information provides supplemental disclosures, offering useful additional metrics for assessing operational and cost performance[32](index=32&type=chunk) - These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for GAAP performance measures[32](index=32&type=chunk) - The presentation of these non-GAAP financial measures may differ from similarly titled non-GAAP financial measures used by other companies[32](index=32&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section provides unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, detailing revenue, expense, and profitability metrics Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Operating Revenues (Three Months Ended June 30) | 2025 ($ millions) | 2024 ($ millions) | % Change | | :------------------------------------ | :-------- | :-------- | :------- | | Passenger | 898 | 950 | (5)% | | Other | 31 | 23 | 35% | | **Total operating revenues** | **929** | **973** | **(5)%** | | Operating Expenses (Three Months Ended June 30) | 2025 ($ millions) | 2024 ($ millions) | % Change | | :------------------------------------ | :-------- | :-------- | :------- | | Aircraft fuel | 230 | 288 | (20)% | | Salaries, wages and benefits | 254 | 244 | 4% | | Aircraft rent | 194 | 147 | 32% | | Station operations | 178 | 163 | 9% | | Maintenance, materials and repairs | 47 | 42 | 12% | | Sales and marketing | 39 | 47 | (17)% | | Depreciation and amortization | 21 | 18 | 17% | | Other operating | 41 | (1) | N/M | | **Total operating expenses** | **1,004** | **948** | **6%** | | **Operating income (loss)** | **(75)** | **25** | **N/M** | | Other income (expense) | | | | | Interest expense | (10) | (8) | 25% | | Capitalized interest | 8 | 7 | 14% | | Interest income and other | 7 | 8 | (13)% | | **Total other income (expense)** | **5** | **7** | **(29)%** | | **Income (loss) before income taxes** | **(70)** | **32** | **N/M** | | Income tax expense (benefit) | — | 1 | (100)% | | **Net income (loss)** | **(70)** | **31** | **N/M** | | Earnings (loss) per share, diluted | (0.31) | 0.14 | N/M | | Weighted-average common shares outstanding (Diluted) | 227,941,534 | 226,603,798 | 1% | [Comparative Operating Statistics](index=7&type=section&id=Comparative%20Operating%20Statistics) This section presents detailed unaudited comparative operating statistics for the three and six months ended June 30, 2025 and 2024, covering ASMs, departures, load factor, per-passenger revenue, and various CASM metrics Comparative Operating Statistics (Three Months Ended June 30) | Operating Statistics (Three Months Ended June 30) | 2025 | 2024 | % Change | | :------------------------------------------ | :--- | :--- | :------- | | Available seat miles ("ASMs") (millions) | 10,313 | 10,552 | (2)% | | Departures | 52,147 | 57,176 | (9)% | | Average stage length (miles) | 942 | 899 | 5% | | Block hours | 140,149 | 147,506 | (5)% | | Average aircraft in service | 163 | 145 | 12% | | Aircraft – end of period | 164 | 148 | 11% | | Average daily aircraft utilization (hours) | 9.7 | 11.2 | (13)% | | Passengers (thousands) | 8,499 | 8,899 | (4)% | | Average seats per departure | 208 | 204 | 2% | | Revenue passenger miles ("RPMs") (millions) | 8,182 | 8,238 | (1)% | | Load Factor | 79.3 % | 78.1 % | 1.2 pts | | Fare revenue per passenger ($) | 40.94 | 39.91 | 3% | | Non-fare passenger revenue per passenger ($) | 64.77 | 66.80 | (3)% | | Other revenue per passenger ($) | 3.56 | 2.54 | 40% | | Total ancillary revenue per passenger ($) | 68.33 | 69.34 | (1)% | | Total revenue per passenger ($) | 109.27 | 109.25 | —% | | Total revenue per available seat mile ("RASM") (¢) | 9.01 | 9.21 | (2)% | | RASM, stage-length adjusted to 1,000 miles (¢) | 8.74 | 8.73 | —% | | Cost per available seat mile ("CASM") (¢) | 9.73 | 8.98 | 8% | | CASM (excluding fuel) (¢) | 7.50 | 6.24 | 20% | | CASM + net interest (¢) | 9.68 | 8.90 | 9% | | Fuel cost per gallon ($) | 2.36 | 2.84 | (17)% | | Fuel gallons consumed (thousands) | 97,427 | 101,690 | (4)% | | Full-time equivalent employees | 7,766 | 8,100 | (4)% | [Reconciliations of Non-GAAP Financial Information](index=8&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Information) This section provides detailed reconciliations of various non-GAAP financial measures to their most directly comparable GAAP metrics, offering supplementary insights into operational and cost performance [Net Income (Loss) to Adjusted Net Income (Loss)](index=8&type=section&id=Net%20Income%20(Loss)%20to%20Adjusted%20Net%20Income%20(Loss)) This section reconciles GAAP net income (loss) and pre-tax income (loss) to adjusted (non-GAAP) figures for Q2 2025 and YTD, with Q2 2025 adjusted net loss at **$70 million** Net Income (Loss) to Adjusted Net Income (Loss) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Net income (loss), as reported | $(70) | $31 | $(113) | $5 | | Valuation allowance adjustment | — | — | — | $5 | | Adjusted net income (loss) | $(70) | $31 | $(113) | $10 | | Income (loss) before income taxes, as reported | $(70) | $32 | $(110) | $8 | | Adjusted pre-tax income (loss) | $(70) | $32 | $(110) | $8 | - Adjusted net income (loss) and adjusted pre-tax income (loss) are supplemental disclosures, considered useful metrics for measuring operating performance and widely used for industry comparisons[34](index=34&type=chunk) - These metrics do not reflect certain cash expenses or future capital expenditure requirements and may differ from other companies' calculations, limiting their comparability[33](index=33&type=chunk) [EBITDA and EBITDAR Reconciliations](index=9&type=section&id=EBITDA%20and%20EBITDAR%20Reconciliations) This section reconciles GAAP net income (loss) to EBITDA, EBITDAR, Adjusted EBITDA, and Adjusted EBITDAR for Q2 2025 and YTD, with Q2 2025 Adjusted EBITDA at **$(54) million** and Adjusted EBITDAR at **$140 million** EBITDA and EBITDAR Reconciliations | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | YTD 2025 ($ millions) | YTD 2024 ($ millions) | | :---------------------- | :----------- | :----------- | :------------ | :------------ | | Net income (loss) | $(70) | $31 | $(113) | $5 | | Plus (minus) adjustments: | | | | | | Interest expense | 10 | 8 | 19 | 17 | | Capitalized interest | (8) | (7) | (16) | (16) | | Interest income and other | (7) | (8) | (14) | (15) | | Income tax expense (benefit) | — | 1 | 3 | 3 | | Depreciation and amortization | 21 | 18 | 41 | 34 | | **EBITDA** | **(54)** | **43** | **(80)** | **28** | | Plus: Aircraft rent | 194 | 147 | 355 | 306 | | **EBITDAR** | **140** | **190** | **275** | **334** | | **Adjusted EBITDA** | **(54)** | **43** | **(80)** | **28** | | **Adjusted EBITDAR** | **140** | **190** | **275** | **334** | - EBITDA and Adjusted EBITDA are useful operating performance metrics widely used in the airline industry, while EBITDAR and Adjusted EBITDAR are particularly valuable for airline valuation by isolating financing, capital expenditure, and income tax impacts[35](index=35&type=chunk)[38](index=38&type=chunk) - These non-GAAP metrics have limitations as they do not reflect certain cash expenses, capital expenditure requirements, working capital needs, or debt interest/principal payments, and may differ from other companies' calculations[36](index=36&type=chunk) [CASM Reconciliations](index=10&type=section&id=CASM%20Reconciliations) This section reconciles GAAP CASM to non-GAAP metrics like CASM (excluding fuel) and Adjusted CASM for Q2 2025 and YTD, with Q2 2025 CASM at **9.73 cents** and CASM (excluding fuel) at **7.50 cents** CASM Reconciliations (Three Months Ended June 30) | CASM Metrics (Three Months Ended June 30) | 2025 (¢/ASM) | 2024 (¢/ASM) | | :---------------------------------------- | :----------- | :----------- | | CASM | 9.73 | 8.98 | | Aircraft fuel impact | (2.23) | (2.74) | | **CASM (excluding fuel)** | **7.50** | **6.24** | | **Adjusted CASM (excluding fuel)** | **7.50** | **6.24** | | **Adjusted CASM** | **9.73** | **8.98** | | Net interest expense (income) impact | (0.05) | (0.08) | | **Adjusted CASM + net interest** | **9.68** | **8.90** | | **CASM + net interest** | **9.68** | **8.90** | - CASM (excluding fuel) and Adjusted CASM (excluding fuel) are useful for investors, providing additional metrics for management performance by excluding significant cost items (fuel) with limited management influence, thus enhancing comparability[40](index=40&type=chunk)[42](index=42&type=chunk) - Adjusted CASM and CASM plus net interest metrics aid in comparing cost management and performance with peers having different capital structures and financing strategies[40](index=40&type=chunk)[42](index=42&type=chunk) [Earnings (Loss) per Share Reconciliations](index=12&type=section&id=Earnings%20(Loss)%20per%20Share%20Reconciliations) This section reconciles GAAP diluted earnings (loss) per share to adjusted diluted EPS for Q2 2025 and YTD, with Q2 2025 adjusted diluted EPS at **$(0.31)** Earnings (Loss) per Share Reconciliations | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :------ | :------ | :------- | :------- | | Earnings (loss) per share, diluted, as reported | $(0.31) | $0.14 | $(0.50) | $0.02 | | Valuation allowance adjustment | — | — | — | $0.03 | | Adjusted earnings (loss) per share, diluted | $(0.31) | $0.14 | $(0.50) | $0.05 | - Adjusted earnings (loss) per share is a supplemental disclosure, considered a useful metric for measuring operating performance and widely used for industry comparisons[44](index=44&type=chunk) - This non-GAAP metric has limitations as an analytical tool, not reflecting certain cash expenses or future capital expenditure requirements, and may differ from other companies' calculations, limiting its comparability[45](index=45&type=chunk) [Total Operating Expense (Excluding Fuel) Reconciliations](index=12&type=section&id=Total%20Operating%20Expense%20(Excluding%20Fuel)%20Reconciliations) This section reconciles GAAP total operating expense to total operating expense (excluding fuel) for Q2 2025 and YTD, with Q2 2025 total operating expense at **$1.004 billion** and adjusted total operating expense (excluding fuel) at **$774 million** Total Operating Expense (Excluding Fuel) Reconciliations | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | YTD 2025 ($ millions) | YTD 2024 ($ millions) | | :------------------------------------ | :----------- | :----------- | :------------ | :------------ | | Total operating expense, as reported | $1,004 | $948 | $1,962 | $1,844 | | Aircraft fuel | (230) | (288) | (468) | (551) | | Total operating expense (excluding fuel) | $774 | $660 | $1,494 | $1,293 | - Total operating expense (excluding fuel) is a supplemental disclosure, useful for investors by providing an additional metric for management performance, excluding significant cost items with limited management influence[46](index=46&type=chunk) - Excluding fuel prices aids management in understanding and analyzing non-fuel costs and core operating performance, enhancing comparability with other airlines providing similar metrics[46](index=46&type=chunk)

Core Insights - Frontier Group Holdings, Inc. (NASDAQ: ULCC), operating as Frontier Airlines, is struggling to establish a viable business model in the current market environment [1] Company Summary - The airline has faced challenges in adapting its business strategy to the evolving industry landscape [1]

Summary of Frontier Group Holdings Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Frontier Group Holdings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Financial Expectations - The upcoming earnings report is expected to show a quarterly loss of $0.28 per share, reflecting a year-over-year change of -300% [3]. - Revenues are projected to be $933.63 million, down 4.1% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 229.07% over the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate for Frontier Group is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.52% [12]. Earnings Surprise History - In the last reported quarter, Frontier Group was expected to post a loss of $0.22 per share but actually reported a loss of -$0.19, resulting in a surprise of +13.64% [13]. - Over the last four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Comparison - In the Zacks Transportation - Airline industry, Sun Country Airlines is expected to post earnings of $0.12 per share, indicating a year-over-year change of +100% [18]. - Sun Country Airlines' revenue is expected to be $254.49 million, with a consensus EPS estimate revised 13.2% higher, resulting in an Earnings ESP of +8.7% [19][20].

Group 1 - Morgan Stanley has adjusted its ratings for the airline sector, believing that American Airlines (AAL.US), Delta Air Lines (DAL.US), and United Airlines (UAL.US) have gained a competitive edge over low-cost carriers [2] - Analyst Jamie Baker noted that the revenue guidance for the three major airlines is significantly stronger, and profit margins are steadily increasing [2] - The remaining three catalysts in the industry are seen as unfavorable for low-cost airlines, as their business model requires ample funding, sufficient aircraft, and enough pilots [2] Group 2 - Morgan Stanley downgraded Frontier Airlines (ULCC.US) from "Overweight" to "Neutral" due to ongoing adverse factors facing low-cost carriers [2] - Southwest Airlines (LUV.US) was also downgraded from "Overweight" to "Neutral," despite its strong profitability record and loyal customer base, due to recent operational issues affecting stock prices and investor patience [2] - The outlook for airlines entering international markets is expected to outperform Southwest Airlines in the short term [2] Group 3 - Morgan Stanley upgraded American Airlines from "Neutral" to "Overweight," anticipating that revenue performance will boost earnings per share in 2024 [3] - The forecast for 2024 earnings per share was raised from $2.50 to $3.00 [3] - The key reason for the rating upgrade is the current importance of revenue momentum and profit margins favoring the three major airlines, along with reduced concerns regarding balance sheets [3]

Financial Results Announcement - Frontier Group Holdings, Inc. will release its second quarter 2025 financial results before the market opens on August 5, 2025 [1] - Management will host a live webcast with analysts on the same day at 11:00am ET, available to the public on a listen-only basis [1] Company Overview - Frontier Airlines, Inc. operates under the parent company Frontier Group Holdings, Inc. and is committed to "Low Fares Done Right" [3] - The company is headquartered in Denver, Colorado, and operates a fleet of 163 A320 family aircraft, having the largest A320neo family fleet in the U.S. [3] - Frontier's operational efficiency is highlighted by its high-density seating configuration and weight-saving initiatives, making it the most fuel-efficient major U.S. carrier when measured by available seat miles (ASMs) per fuel gallon consumed [3] - The company has 183 new Airbus planes on order, indicating continued growth to provide affordable travel across America [3]

Company Overview - U.S. Gold Corp. is a publicly traded company focused on gold and copper exploration and development, with a portfolio of exploration properties including the CK Gold Project in Southeast Wyoming, the Keystone exploration property in Nevada, and the Challis Gold Project in Idaho [5] Sponsorship and Community Engagement - U.S. Gold Corp. is serving as a Copper Boot sponsor for the 129th Annual Cheyenne Frontier Days, which is the world's largest outdoor rodeo, highlighting the company's commitment to the local community and economy [1][3] - This marks the third year as a Copper Boot sponsor and the fourth year overall sponsoring the event, indicating a long-term commitment to the region [3] CK Gold Project Development - The CK Gold Project received its Mine Operating Permit from the Wyoming Department of Environmental Quality in May 2024, clearing major regulatory hurdles for development [4] - The project has proven and probable mineral reserves of 1.02 million ounces of gold and 260 million pounds of copper, with an estimated average annual production of 111,250 ounces of gold equivalent over a ten-year mine life [4] - The company believes that the CK Gold Project will support federal and state plans to electrify the automotive industry, as copper is essential for renewable energy and electric transmission [4]