Frontier Group Holdings is reshaping its Denver-based Frontier Airlines fleet by terminating leases on 13 Airbus A320neo aircraft and replacing most of that capacity with 10 directly leased A321neo jets from AerCap. The move keeps overall capacity broadly stable while giving the carrier a larger, more productive narrowbody mix as it adjusts to changing ultra-low-cost airline economics.
The A320neo leases were agreed for early termination on 25 August and the aircraft are due back in the second half of 2026. The A321neo lease deal followed on 29 August, with deliveries expected between late 2026 and early 2027. Frontier had already returned 24 leased A320neos to AerCap earlier in the year and is targeting a fleet of about 168 aircraft by early 2027.
The transaction is expected to reduce operating lease right-of-use assets and liabilities by about $260 million. Frontier also expects non-cash charges of $60 million to $80 million and cash charges of $90 million to $120 million, mainly tied to early termination and return costs, with much of the cash settlement landing in 2028 and 2029. The airline also avoids maintenance costs that would have come with keeping the older leases in place.