The record adjusted revenue and beat vs internal guidance are overshadowed by the massive fuel cost headwind — jet fuel is expected to jump from $2.88/gal in Q1 to $4.25/gal in Q2, driving a wider adjusted loss. The Q2 guidance of ($0.45)-($0.60) per share is significantly worse than the Q1 adjusted loss of ($0.30). Watch for the Q2 earnings call for updates on fuel hedging, capacity adjustments, and the co-brand credit card extension discussions that management cited as a liquidity support.
Price Chart
Executive Summary
Frontier Airlines reported Q1 2026 GAAP net loss of $272M ($1.18/share) including $212M in non-recurring charges (early lease termination and TSA reserve). On an adjusted basis, net loss was $68M ($0.30/share), beating the company's own guidance range of ($0.32) to ($0.44) loss per share. Adjusted revenue hit a record $1.065B, up 17% YoY on 1% lower capacity, but the airline faces a severe headwind from jet fuel costs expected to nearly double to $4.25/gal in Q2, driving Q2 guidance for an adjusted loss of ($0.45) to ($0.60) per share.
Key Financial Metrics
Key Facts
- GAAP net loss of $272M, or $1.18 per diluted share, including $139M early lease termination charge and $73M TSA reserve charge
- Adjusted (non-GAAP) net loss of $68M, or $0.30 per share, beating guidance of ($0.32) to ($0.44) loss per share
- Adjusted revenue of $1.065B, an all-time record, up 17% YoY on 1% lower capacity
- Adjusted RASM (stage-length adjusted) of 10.29 cents, up 17% YoY, at the higher end of guidance
- Total liquidity of $974M at quarter-end, up $100M from year-end 2025
- Q2 2026 adjusted loss per share guidance of ($0.45) to ($0.60), with jet fuel cost estimated at $4.25/gallon (up from $2.88 in Q1)
- Expects $75M to $100M of additional charges in Q2 related to the Early Return Agreement
- Company not providing full-year 2026 EPS guidance; only providing select items (pre-delivery deposits and capex)
- Executed agreements to defer 69 Airbus deliveries and early terminate 24 A320neo leases
Financial Impact
Q1 adjusted net loss of $68M; Q2 guided adjusted loss of $0.45-$0.60/share; fuel cost expected to nearly double to $4.25/gal
Risk Factors
- Jet fuel prices at $4.25/gal in Q2 could further spike, worsening losses
- Additional $75M-$100M in Early Return Agreement charges in Q2
- No full-year EPS guidance provided, signaling high uncertainty
- Adjusted CASM (ex-fuel) rose 22% YoY, indicating cost pressures beyond fuel
- Valuation allowance against deferred tax assets limits tax benefit from losses
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001670076-26-000049 |
| Document: fron-20260505.htm | 0001670076-26-000049 |
| Document: 0001670076-26-000049-index-headers.html | 0001670076-26-000049 |
| Document: 0001670076-26-000049-index.html | 0001670076-26-000049 |
| Document: 0001670076-26-000049.txt | 0001670076-26-000049 |
| 8-K Data (Synthetic) | 0001670076-26-000049 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | Press Release | $4.61 | awaiting T+60 | — | $5.03 (+9.22%) |
Aug 6, 2026 11w ago | Insider Cluster | $7.38 | awaiting T+60 | — | $5.03 (−31.78%) |
Aug 4, 2026 11w ago | Insider Cluster | $7.96 | awaiting T+60 | — | $5.03 (−36.71%) |
Jul 29, 2026 12w ago | 8-K | $6.50 $5.30 | ▼ −18.46% | ▼ −23.19% | $5.03 (−22.54%) |
Jul 17, 2026 14w ago | 8-K | $6.21 $5.58 | ▼ −10.14% | ▼ −14.99% | $5.03 (−18.92%) |
Jul 7, 2026 15w ago | 8-K | $7.16 $5.97 | ▼ −16.62% | ▼ −19.11% | $5.03 (−29.68%) |
Jun 30, 2026 16w ago | 8-K | $7.73 $5.85 | ▼ −24.32% | ▼ −27.19% | $5.03 (−34.86%) |
Jun 9, 2026 19w ago | Insider Cluster | $5.54 $5.74 | ▲ +3.70% | ▼ −2.88% | $5.03 (−9.03%) |
May 5, 2026 25w ago | 8-K | $4.37 $6.98 | ▼ −59.73% | ▼ −56.99% | $5.03 (−15.22%) |
Feb 28, 2026 34w ago | Institutional Cluster | $4.04 $5.31 | ▲ +31.44% | ▲ +22.11% | $5.03 (+24.63%) |
US Market Status
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