Frontier Airlines Eyes Mid-to-High Single-Digit RASM Growth for Q3 2025

Frontier Group Holdings, Inc. (ULCC) expects mid- to high single-digit RASM growth for Q3 2025, driven by capacity reductions and premium initiatives. In Q2 2025, the company's earnings were within guidance range despite significant weather and air traffic control delays. CEO Barry L. Biffle highlighted the impact of these factors, estimating a $1.8 million impact on revenue.

Frontier Group Holdings, Inc. (ULCC), the parent company of Frontier Airlines, Inc., has released its financial results for the second quarter of 2025. The company reported total revenue of $929 million, a two percent decrease in capacity compared to the same quarter in 2024. Despite significant weather and air traffic control delays in late May and June, the company's earnings were within its guidance range. Barry L. Biffle, CEO of Frontier Group Holdings, commented on the results, stating that the domestic supply and demand balance is anticipated to improve sequentially over the next several months, which is expected to support mid-to-high single-digit RASM growth in the third quarter on a stage-adjusted basis.

The company's revenue per available seat mile (RASM) was 9.01 cents, while the CASM was 9.73 cents, an eight percent increase compared to the same quarter in 2024. Frontier also reported a net loss of $70 million for the second quarter, or $(0.31) per share. The company ended the quarter with $766 million in total liquidity, consisting of unrestricted cash and cash equivalents of $561 million and $205 million of availability from its undrawn revolving credit facility.

Frontier took delivery of three A321neo aircraft during the second quarter, bringing the total number of A320neo family aircraft in its fleet to 84 percent, the highest percentage among all major U.S. carriers. The company also launched the free unlimited companion travel benefit for Frontier Elite Platinum and Diamond status members, which supported a 19 percent increase in cardholder spending over the corresponding 2024 quarter. Frontier launched 35 new routes and announced an expansion of service across the Eastern and Midwestern United States.

For the third quarter of 2025, Frontier expects adjusted (non-GAAP) loss per share to range from $(0.26) to $(0.42), reflecting an expected sequential improvement in competitive overlap capacity and continued progress across key commercial initiatives. The company's capacity in the third quarter is expected to be down four to five percent to the corresponding prior-year quarter.

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[1] https://www.prnewswire.com/news-releases/frontier-airlines-reports-second-quarter-2025-financial-results-302521687.html