Frontier Group (ULCC) investor relations material

Executive summary

• Q3 2025 revenue was $886 million, down 5% year-over-year, with a net loss of $77 million or $(0.34) per share, reflecting disciplined execution amid competitive fare pressures and excess capacity.

• Operating expenses increased 5% in Q3, driven by higher non-fuel costs, despite a significant reduction in fuel expense.

• Load factor improved by 2.7 points to 80.7%, and average stage length increased 7% to 917 miles.

• Strategic focus includes loyalty program enhancements, rollout of first-class seating by spring, and network expansion with 42 new routes, including international destinations.

• The fleet grew to 166 aircraft, with 84% being fuel-efficient A320neo family models.

Financial highlights

• Q3 2025 operating revenues were $886 million (down 5% year-over-year), with operating expenses of $963 million (up 5%).

• Revenue per passenger was $106, up 1% year-over-year, with an 81% load factor, nearly three points higher than last year.

• RASM was $0.0914; stage-adjusted RASM improved 2% year-over-year to $0.0876.

• Q3 net loss was $77 million, or $0.34 per share, including $1 million tax expense.

• Ended Q3 with $691 million in total liquidity, including $561 million in cash and equivalents.

Outlook and guidance

• Q4 2025 capacity expected to be roughly flat year-over-year, with competitive seat capacity projected to decline by 2%.

• Q4 adjusted earnings guidance between $0.04 and $0.20 per diluted share.

• Average all-in fuel cost for Q4 expected at $2.50 per gallon, $0.09 higher than prior quarter's forward curve.

• No material tax provision expected in Q4 due to tax loss carry forward.

• Management anticipates improved revenue performance in 2026 as competitive capacity reductions continue.