Frontier Group Holdings (ULCC) Q2 2026 Earnings Report

459 Followers

Previous Report: Q1 2026

ULCC Q2 2026 EPS Results

Actual EPS-$0.10

Consensus EPS-$0.47

Beat/MissBeat by +$0.37

One Year Ago EPS-$0.31

ULCC Q2 2026 Revenue Results

Actual Revenue$1.28B

Expected Revenue$1.22B

Beat/MissBeat by +$61.32M

YoY Revenue Growth+37.67%

Earnings Announcement Details

QuarterQ2 2026

Date07/29/2026

TimeBefore Open

Conference CallWednesday, July 29, 2026

ULCC Upcoming Earnings

Frontier Group Holdings's next earnings date is estimated for November 11, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

ULCC Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 29, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call conveyed strong operational and commercial progress: record revenue (+38% YoY), a significant earnings beat (adjusted loss narrowed to $0.10/sh), improved liquidity ($1.16B, 27% of TTM revenue), tangible loyalty gains (~30% co-brand growth), fleet right‑sizing and a clear cost‑savings program ($200M target). Key challenges include elevated fuel costs (~$4.17/gal, +$180M vs prior indications), lumpy near‑term capacity and reduced sale‑leaseback gains vs prior year which complicate comparisons. Management expects profitability in H2 and continued progress into 2027 but execution risk remains around pending lease transactions and demand/fuel volatility.

Company Guidance

The company updated guidance that it expects to return to profitability in the second half of 2026 and provided specific quarterly targets: Q3 adjusted diluted EPS of a loss of $0.10 to a profit of $0.10 at an average fuel price of $3.70/gal, and Q4 adjusted diluted EPS of breakeven to a $0.20 profit at $3.45/gal (marking the third consecutive quarter of improvement). Operational and capacity guidance includes Q3 scheduled capacity up 2–3% sequentially and 17–18% year‑over‑year (domestic capacity flat YoY; competitive capacity down >4 points), and Q4 growth of ~7% YoY assuming execution of contemplated lease deals. Fleet and balance sheet guidance: ended Q2 with 165 Airbus aircraft (Q2 deliveries: 2 A320neos, 4 A321neos), expect to take 1 A320neo and 5 A321neos in Q3, returned all 24 AerCap A320neos, are in advanced talks to early-terminate 13 A320neo leases and replace with up to 10 A321neos, and would operate no more than 168 Airbus aircraft by end‑Q1 2027 (stable through 2027) if executed; liquidity ended Q2 at $1.16 billion (27% of trailing 12‑month adjusted revenue). Financial context and targets reiterated include Q2 results of $1.3 billion revenue (+38% YoY), RASM of $0.1152 (+28% YoY), Q2 adjusted net loss of $22 million (‑$0.10/share vs. prior guidance ‑$0.45 to ‑$0.60), Q2 total adjusted operating expenses of $1.3 billion ($0.1177/ASM) including $436 million of fuel at $4.17/gal, adjusted op expenses ex‑fuel and early returns of $870 million ($0.0742/ASM stage‑adjusted), an unchanged CapEx guide, a $200 million annual run‑rate cost‑savings target by 2027, and a medium‑term CASM‑ex (adjusted) target in the mid‑$0.07s per ASM range.

Record Quarterly Revenue

Quarterly revenue reached a company record of $1.3 billion, up 38% year-over-year, driven by stronger travel demand and revenue management initiatives.

RASM and Revenue Per Passenger Strength

RASM increased 28% year-over-year to $0.1152; total revenue per passenger rose ~20% to approximately $131 with a flown load factor of 80.3% (up 1 point) on capacity that was ~8% higher.

Material Beat on Earnings Guidance

Second quarter adjusted net loss narrowed to $22 million, or $0.10 per share, significantly better than prior guidance of a $0.45 to $0.60 per share loss, driven primarily by stronger-than-expected revenue and disciplined cost management.

Improved Liquidity and Balance Sheet Flexibility

Ended the quarter with $1.16 billion of liquidity, representing 27% of trailing 12-month adjusted revenue, materially above guidance and supported by stronger sales and a Barclays signing bonus.

Fleet Right-Sizing and Modernization

Returned all 24 AerCap aircraft and ended the quarter with 165 Airbus aircraft; in advanced discussions to early terminate leases on 13 A320neos and replace with up to 10 A321neos, supporting a slower Q4 capacity growth target of ~7% and a more efficient fleet.

Progress on Cost Savings and Unit Cost Improvement

On track to deliver $200 million of targeted annual run-rate cost savings by 2027. Adjusted operating expenses excluding fuel and early return were $870 million, or $0.0742 per ASM stage-adjusted, reflecting a sequential decline of over 10% on higher utilization.

Loyalty and Product Enhancements

Barclays co-brand card revenue contribution increased nearly 30% year-over-year with record card acquisition; sold $175 million of pre-purchased mileage in the quarter (facility max $375 million). Announced fleet-wide Starlink Wi‑Fi rollout expected early 2027 and planned first-class rollout to enhance segmentation and repeat business.

ULCC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 11, 2026	2026 (Q3)	-0.06 / -	-0.34	―
Jul 29, 2026	2026 (Q2)	-0.47 / -0.10	-0.31	67.74% (+0.21)
May 05, 2026	2026 (Q1)	-0.36 / -0.30	-0.19	-57.89% (-0.11)
Feb 11, 2026	2025 (Q4)	0.13 / 0.23	0.23	0.00% (0.00)
Nov 05, 2025	2025 (Q3)	-0.37 / -0.34	-0.05	-580.00% (-0.29)
Aug 05, 2025	2025 (Q2)	-0.28 / -0.31	0.14	-321.43% (-0.45)
May 01, 2025	2025 (Q1)	-0.15 / -0.19	-0.09	-111.11% (-0.10)
Feb 07, 2025	2024 (Q4)	0.13 / 0.23	0.005	4500.00% (+0.23)
Oct 29, 2024	2024 (Q3)	-0.02 / -0.05	-0.14	64.29% (+0.09)
Aug 08, 2024	2024 (Q2)	0.12 / 0.14	0.31	-54.84% (-0.17)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed