Frontier Airlines, under Frontier Group Holdings Inc, has reported a net income of $53 million for the fourth quarter of 2025, translating to $0.23 per diluted share. The airline's total revenue for the quarter reached $997 million, maintaining capacity levels from the previous year. The company also revealed plans to optimise its fleet and expand its route network in 2026.
The airline's revenue per available seat mile (RASM) was 10.17 cents, slightly higher than the same period in 2024. Despite challenges such as the US government shutdown, Frontier managed to exceed its financial guidance, thanks to strategic revenue management initiatives. CEO Jimmy Dempsey highlighted the company's focus on returning to profitability and enhancing stakeholder value through fleet rightsizing, cost discipline, and improved customer loyalty.
Frontier's operating expenses for Q4 2025 totalled $948 million, with fuel costs averaging $2.44 per gallon. The airline's cost per available seat mile (CASM) was 9.67 cents, a slight decrease from the previous year. Frontier's liquidity stood at $874 million at year-end, bolstered by an expanded revolving credit facility.
Looking ahead, Frontier plans to return 24 A320neo aircraft to AerCap Holdings NV in Q2 2026 and has deferred the delivery of 69 A320neo family aircraft to 2031–2033. The airline also announced 23 new routes launching in March and April, reinforcing its position as a leading high-value carrier in major US metros. These strategic moves are expected to generate annual cost savings of approximately $200 million by 2027
This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.
