Frontier has recently released its 10-Q report for the quarter ended June 30, 2026. Frontier Group Holdings, Inc. operates low-fare passenger airline service for leisure travelers in the United States and Latin America, with sales handled mainly through its website, mobile apps, and contact centers. As of December 31, 2025, the company said it had 176 Airbus single-aisle aircraft and was headquartered in Denver, Colorado.
In management’s discussion and analysis, Frontier said geopolitical tensions and military conflict in the Middle East, including developments involving Iran, pushed up global energy markets and contributed to higher jet fuel costs during the three and six months ended June 30, 2026. The company also said it amended its Barclays credit card affinity agreement in June 2026, extending both the co-branded card deal and the pre-purchased miles facility from Dec. 31, 2029 to June 30, 2037, while increasing that facility from $200 million to $375 million. Frontier said it was in labor negotiations with unions representing pilots, flight attendants and aircraft technicians, and that in 2025 it received a revised preliminary federal excise tax assessment of $133 million tied to certain optional ancillary products and services.
Frontier also disclosed a TSA-related charge of $73 million during the first half of 2026 tied to prior periods, covering the 2016-2018 audit and the 2019-2022 audit. In April 2026, the company lost its appeal on the earlier audit and received a preliminary assessment of $42 million for the later audit. Frontier said the charge was largely related to TSA fees for passengers who bought tickets but did not travel, as well as flight credits that expired unused.
On the fleet side, Frontier said it agreed in June 2026 to sell 11 A321neo aircraft at delivery from an existing purchase agreement, with three deliveries expected in the fourth quarter of 2026 and eight in the first half of 2027. In March 2026, it agreed to terminate leases on 24 A320neo aircraft, and by June 30 all 24 had been returned and removed from the fleet. The company recorded $70 million of operating expenses tied to that early return in the second quarter and $209 million for the first six months of 2026.
For the quarter ended June 30, 2026, Frontier reported operating revenue of $1.279 billion, up 38% from $929 million a year earlier. For the first six months, revenue rose 23% to $2.271 billion from $1.841 billion. Capacity, measured by available seat miles, increased 8% in the quarter to 11.103 billion and 3% in the half year to 20.912 billion. Load factor improved to 80.3% from 79.3% in the quarter and to 80.6% from 78.4% in the half year.
Passenger revenue in the quarter was $1.235 billion, up from $898 million, while other operating revenue rose to $44 million from $31 million. Total revenue per passenger increased 20% in the quarter to $131.46 from $109.27, and fare revenue per passenger rose to $63.04 from $40.94. Revenue per available seat mile increased 28% in the quarter to 11.52 cents and 20% in the first half to 10.86 cents.
Operating expenses climbed to $1.376 billion in the quarter from $1.004 billion, and to $2.651 billion in the first half from $1.962 billion. Fuel expense jumped 90% in the quarter to $436 million from $230 million, driven by a 77% increase in fuel cost per gallon to $4.17 and an 8% increase in fuel gallons consumed to 104.789 million. For the first half, fuel expense rose 50% to $706 million from $470 million, with fuel cost per gallon up 45%.
Non-fuel expenses also increased sharply. Aircraft rent rose 37% in the quarter to $266 million, maintenance, materials and repairs increased 36% to $64 million, and depreciation and amortization jumped to $56 million from $21 million. Salaries, wages and benefits increased 5% to $266 million, while station operations rose 11% to $197 million.
Frontier posted a pre-tax loss of $94 million for the quarter, compared with a loss of $70 million a year earlier. For the first six months, pre-tax loss widened to $375 million from $110 million. Net loss was $90 million in the quarter and $362 million in the first half, compared with $70 million and $113 million, respectively, a year earlier. Adjusted pre-tax loss was $24 million in the quarter and $93 million in the first half, while adjusted net loss was $22 million and $90 million.
As of June 30, 2026, Frontier said total available liquidity was $1.156 billion, including $936 million of unrestricted cash and cash equivalents plus availability under its revolving line of credit. Today the company's shares have moved 7.14% to a price of $6.675. For more information, read the company's full 10-Q submission here.
