Frontier Group (ULCC) disclosed last night that it expects revenue growth in Q1 of 5% on capacity growth of 5%, both compared to the corresponding prior year quarter. Revenue growth is anticipated to be lower than expected due to weakened demand in March, resulting in fare discounting and promotions across the industry, amplified by the close-in nature of Frontier’s bookings, the company said. In response to the current environment, Frontier reduced scheduled capacity in Q2, focusing the reductions on off-peak days of the week. Capacity in Q2 is currently expected to be down low single digits compared to the corresponding prior year quarter. Frontier sees its Q1 adjusted pre-tax loss margin to be 5%. Adjusted net loss in Q1 is expected to be (20c)-(24c). The consensus estimate is (4c). The company said it is unable to reaffirm its full-year 2025 guidance due to the uncertain environment. “Given the uncertainty in the current environment, the Company is focused on maximizing its liquidity through diligent management of the controllable elements of the business, including, but not limited to, optimization of capacity and related costs, and discretionary capital spending,” Frontier added. The stock in morning trading is down 14% to $3.08.

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Frontier Group price target lowered to $4 from $7.25 at Citi Cautious Outlook for Frontier Group Holdings Amid Financial and Operational Challenges Frontier Group price target lowered to $6 from $10 at Barclays Frontier Group Holdings Lowers Q1 2025 Revenue Guidance Frontier Group price target lowered to $10 from $14 at Barclays

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