Frontier Airlines Reports Third Quarter 2025 Financial Results

Core Insights - Frontier Group Holdings, Inc. reported third-quarter 2025 financial results that met expectations despite a competitive pricing environment, with a focus on capacity reductions and improved revenue performance anticipated through 2026 [3][4][5] Financial Performance - Total operating revenue for Q3 2025 was $886 million, a decrease of 5% compared to Q3 2024, driven by a 4% reduction in capacity [4][5][23] - Total operating expenses were $963 million, up 5% from the previous year, with fuel expenses accounting for $234 million at an average cost of $2.54 per gallon [5][7][23] - The net loss for Q3 2025 was $77 million, or $(0.34) per share, compared to a net income of $26 million in Q3 2024 [9][23] Revenue Metrics - Revenue per available seat mile (RASM) was 9.14 cents, a 2% increase on a stage-adjusted basis compared to Q3 2024 [5][26] - Total revenue per passenger was $106, roughly flat compared to the corresponding 2024 quarter, with a load factor of 80.7%, up approximately 3 percentage points [6][26] Cost Metrics - Cost per available seat mile (CASM) was 9.95 cents, a 9% increase from Q3 2024, with adjusted CASM (excluding fuel) at 7.53 cents, up 16% year-over-year [8][26] - The increase in CASM was primarily due to a 15% reduction in average daily aircraft utilization [8] Liquidity and Financing - As of September 30, 2025, total liquidity was $691 million, which includes unrestricted cash and availability from the revolving credit facility [10] - The company issued a $105 million note in Q4 2025, secured by spare parts and tooling related to its A320 family aircraft [11] Fleet and Capacity - Frontier's fleet consisted of 166 Airbus single-aisle aircraft, with 84% being fuel-efficient A320neo family aircraft [12][13] - The company announced 42 new routes, expanding its service in major U.S. metros and introducing international destinations [5][19] Forward Guidance - For Q4 2025, the company expects adjusted diluted earnings per share to range from $0.04 to $0.20, with capacity growth anticipated to be roughly flat compared to Q4 2024 [17][18]