‍DALLAS — Frontier Airlines (F9) started 2025 with a record-setting first-quarter revenue performance. Still, the Denver, Colorado-based low-cost carrier (LCC) posted a wider loss as softer March demand, lower average fares, and rising non-fuel costs weighed on results.

The airline remains confident in a return to profitability in the second half of the year, citing fleet investments, new route launches, and aggressive cost controls.

Revenue Reaches Q1 Record, Though Pricing Pressures Linger

Frontier reported US$912 million in total operating revenue for Q1 2025, a 5% year-over-year increase, marking its highest first-quarter revenue.

This was driven by a 5% increase in capacity (ASMs), a 12% jump in enplanements, and expanded network activity including 17 new routes across the U.S. and the Caribbean. However, total revenue per passenger declined 6% to US$116.33, reflecting a promotional pricing environment amid macroeconomic uncertainty.

Revenue per available seat mile (RASM) held nearly flat at 9.17 cents, while load factor improved modestly to 74.9%, up from 72.7% in Q1 2024.

Costs Edge Higher Despite Fuel Relief

Operating expenses rose 7% year-over-year to US$958 million, including US$238 million in fuel costs, down from US$263 million in the year-ago quarter, thanks to a 13% decline in fuel price per gallon.

Cost per available seat mile (CASM) rose to 9.63 cents, up 1%, while CASM excluding fuel increased by 8% to 7.24 cents. The uptick was attributed to reduced aircraft utilization, shorter stage lengths, increased station costs, and fewer leaseback gains.

Loss Widens as Margins Compress

Frontier posted a net loss of US$43 million (or US$0.19 per share) in Q1 2024, compared to a loss of US$26 million (or US$0.12 per share) in Q1 2024. The pre-tax loss margin increased to 4.4%, reflecting margin pressures despite top-line growth. Adjusted earnings metrics were tracked similarly, with adjusted net loss at US$43 million.

Liquidity Remains Strong

As of March 31, 2025, Frontier reported US$889 million in total liquidity, including US$684 million in unrestricted cash and US$205 million from an undrawn credit facility. The company emphasized an ongoing focus on cash preservation through capacity discipline, cost control, and capital spending restraint.

Fleet Growth, Environmental Leadership

Frontier’s fleet grew to 163 Airbus aircraft, bolstered by the delivery of four A321neo jets and two spare engines during the quarter. The carrier now boasts the highest percentage of fuel-efficient A320neo-family aircraft (82%) among major U.S. carriers. It also reported 107 available seat miles per gallon, a new fuel-efficiency record, reinforcing its branding as “America’s Greenest Airline.”

Future fleet growth is locked in with 183 additional aircraft committed through 2031, mostly comprised of A321neo. The airline has sale-leaseback financing through 2025 and 40% of 2026 expected deliveries.

Second Quarter, 2025 Outlook

Frontier expects to remain red in Q2, forecasting an adjusted loss per share of US$(0.23) to US$(0.37). The outlook reflects soft April travel demand and the lag between capacity cuts and cost adjustments. Still, booking trends for May and early summer appear more stable.

Management reaffirmed its goal to return to profitability in the second half of 2025, pointing to a combination of capacity rationalization, network optimization, and commercial initiatives like the Economy bundle fare offering.

The company has reduced planned capacity for Q2 and the remainder of 2025 by low single digits compared to prior-year periods, focusing adjustments on off-peak days.

Despite near-term pressures, F9's record revenue, strong liquidity position, and fuel-efficient fleet keep it well-placed for a rebound as demand stabilizes and pricing improves. The carrier’s low-cost structure and ongoing fleet modernization remain competitive anchors in a volatile market where LCCs are no longer what they used to be.

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