Frontier Group Holdings, parent of Frontier Airlines, posted a net loss of $272 million in the first quarter of 2026, or $1.18 per diluted share, compared to a $43 million loss in the prior-year period. The wider shortfall stemmed from a $139 million charge tied to an early lease termination for 24 A320neo aircraft and a $73 million reserve for Transportation Security Administration fees on unused travel.
Operating revenue reached $992 million, up 9% year over year, while adjusted revenue hit a record nearly $1.1 billion, a 17% increase despite 1% lower capacity. Adjusted revenue per available seat mile, stage-length adjusted to 1,000 miles, rose 17% to 10.29 cents. Load factor improved to 78.4%, up about four points.
Total operating expenses climbed 33% to $1.275 billion, with cost per available seat mile at 13.00 cents and excluding fuel at 10.27 cents. Adjusted figures showed operating expenses of $1.1 billion, or 11.58 cents per ASM, including fuel at $2.88 per gallon. The carrier achieved 106 ASMs per gallon, over 40% more efficient than major U.S. rivals.
Liquidity stood at $974 million at quarter-end, including $754 million in cash and $220 million revolver capacity. Debt totaled $588 million. For the second quarter, Frontier guided adjusted diluted loss per share of $0.45 to $0.60, with capacity growth of 6% to 8% versus last year.