Core Insights - Frontier Airlines' parent company, Frontier Group, experienced a nearly 13% decline in share price following the abrupt departure of CEO Barry Biffle, who will be replaced by President James Dempsey as interim CEO [1][2] - The company reported a loss of $77 million in its third quarter, highlighting the financial challenges faced by budget airlines due to rising labor and airport costs [4] - Frontier is attempting to adapt by introducing new first-class seating and focusing on loyalty revenues while maintaining strict control over capacity [6] Company Performance - Frontier Group's current market capitalization stands at $1.2 billion, with shares trading at $5.00, reflecting a daily change of -1.77% [3] - The company's gross margin is reported at 1.93%, indicating tight profit margins in a competitive market [3] - The cost per available seat mile excluding fuel (CASM-Ex) is increasing at a faster rate than revenue per available seat mile (RASM), which is a concerning trend for the airline [7] Industry Context - The budget airline sector is facing significant challenges, including rising operational costs and intense price competition, particularly against network carriers like Delta and United [4] - The competitive landscape remains tough for low-cost carriers, which are disproportionately affected by cost increases compared to their larger counterparts [4]