Ultra low cost airline Frontier Q3 revenue misses estimates amid pricing concerns

Reuters
18 hours ago
Ultra low cost airline Frontier Q3 revenue misses estimates amid pricing concerns

Overview

  • Frontier Group Q3 revenue missed analyst expectations, net loss reported

  • Company inducted two A321neo aircraft, expanding fleet to 84% fuel-efficient models

  • Company announced 42 new routes, including international destinations

Outlook

  • Company expects Q4 2025 adjusted EPS between $0.04 and $0.20

  • Frontier anticipates flat capacity growth in Q4 2025 compared to Q4 2024

  • Company sees competitive capacity reductions supporting improved revenue through 2026

Result Drivers

  • COMPETITIVE PRICING - Frontier navigated a competitive pricing environment, impacting revenue performance, per CEO Barry Biffle

  • FLEET EXPANSION - Inducted two A321neo aircraft, increasing fleet to 84% fuel-efficient models

  • NEW ROUTES - Announced 42 new routes, including international destinations, as part of expansion strategy

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Operating revenue

Miss

$886 mln

$916.30 mln (9 Analysts)

Q3 Adjusted Net Income

Miss

-$77 mln

-$75.70 mln (7 Analysts)

Q3 Net Income

-$77 mln

Q3 Adjusted Pretax Profit

Miss

-$76 mln

-$73.60 mln (7 Analysts)

Q3 Pretax Profit

-$76 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the airlines peer group is "buy."

  • Wall Street's median 12-month price target for Frontier Group Holdings Inc is $5.50, about 34.5% above its November 4 closing price of $3.60

Press Release: ID:nPnb6Glqwa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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