Frontier (ULCC) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $1.3 billion, up 38% year-over-year, driven by strong demand, higher revenue per passenger, and commercial strategy execution.

• Adjusted net loss for Q2 was $22 million ($0.10 per share), significantly better than guidance, excluding a $70 million non-recurring Early Return Agreement charge; GAAP net loss was $90 million.

• Transformation initiatives in fleet rightsizing, cost discipline, operational reliability, and customer loyalty are progressing, positioning the business for sustained profitability.

• Liquidity ended at $1.16 billion, representing 27% of trailing 12-month adjusted revenue.

• Extended and improved Barclays co-brand credit card partnership through 2037 and announced Starlink Wi-Fi launch in 2027.

Financial highlights

• Q2 operating revenue was $1.279 billion, up from $929 million in Q2 2025.

• Adjusted operating expenses for Q2 were $1.306 billion, with fuel expense at $436 million ($4.17/gallon), up 90% year-over-year.

• Adjusted EBITDA for Q2 was $225 million.

• Revenue per passenger rose 20% to $131, with load factor at 80.3% on 8% higher capacity.

• Total available liquidity was $1,156 million, including $936 million in cash and equivalents.

Outlook and guidance

• Q3 2026 adjusted EPS guidance: $(0.10) to $0.10; Q4: breakeven to $0.20, with fuel prices expected at $3.70/gallon and $3.45/gallon, respectively.

• Q3 capacity expected to rise 17–18% year-over-year; Q4 capacity up ~7%.

• RASM expected to increase over 20% in Q3 year-over-year.

• Management expects continued pressure on operating costs due to volatile fuel prices and supply chain challenges.

• Anticipates returning to profitability in the second half of the year.