Frontier Airlines has published its Q4 2025 financial results, one of the last publicly listed airlines in the United States to do so.
While the airline ended the quarter with a net profit of $53 million, which was only $1 million lower compared to Q4 2024, it swung back to a net loss of $137 million for the full year, compared to a net profit of $86 million in 2024.
Revenues down, costs up
In Q4 2025, Frontier Airlines’ revenues were $997 million, down 0.5% from 2024. During the full year, total revenue was down 1% compared to 2024. Meanwhile, operating expenses were down 1% for the quarter and up 4% for the full-year. Unit revenue, or revenue per available seat mile (RASM), was 1% lower YoY in both Q4 2025 and the full year.
“RASM was 10.17 cents, while RASM on a stage-adjusted basis to 1,000 miles was 9.61 cents, slightly higher than the comparable 2024 quarter, largely driven by the continued progress on the Company's revenue and network initiatives and overall moderation in competitive capacity, which helped to overcome the November U.S government shutdown and the resulting FAA flight reduction directive.”
The low-cost carrier’s total revenue per passenger and ancillary revenue were both lower in Q4 2025 and for the full-year. Average total revenue per passenger was $112.17 in 2025, down 1%, and $116.83 in Q4 2025, which was broadly flat, or 34¢ lower.
Ancillary revenue per passenger fell from $70.29 in 2024 to $67.57 in 2025 as Frontier Airlines introduced bundles as part of its ‘New Frontier’ strategy. As part of the strategy, the airline will introduce new first class seats, which are scheduled to debut later in 2026.
Rytis Beresnevicius
Flat capacity despite 16 additional aircraft
Despite ending the year with 16 more operating aircraft than in 2024, Frontier Airlines’ capacity, measured in ASMs, was flat during the quarter and the year.
It also operated fewer departures and had fewer block hours (BHs), yet increased its average stage length by 3% in 2025. Average seats per departure increased from 205 to 209.
The reason is that Frontier Airlines continued to reduce its aircraft utilization. In 2025, its daily aircraft utilization was 9.2 hours, 11% lower YoY, while in Q4 2025, utilization was 8.6 hours, or 10% lower YoY.
However, there will be big changes to its fleet. Frontier Airlines reached an agreement with AerCap to end the leases for 24 aircraft, which would have expired in the next two to eight years, and also deferred the delivery of 69 Airbus A320neo family aircraft from the period 2027-2030 to the period 2031-2033.
The AerCap lease amendments were finalized in early February 2026, and the aircraft will leave the fleet in Q2.
“The Company expects to finalize the definitive documents for both transactions by the first quarter of 2026 and incur certain one-time expenses associated with the completion of the lease termination agreement.”
Together with the fleet adjustments, cost-saving opportunities are expected togenerate annual run-rate cost savings of around $200 million by 2027, it said.
Full-year swings
Frontier Airlines provided an initial Q1 2026 and full-year guidance. It expects to be loss-making during the first quarter of the year, with an adjusted diluted earnings per share (EPS) of between -$0.26 to -$0.44.
Capacity will be 1% to 2% lower YoY.
Meanwhile, during the full year, Frontier Airlines expects to grow capacity by around 10% with a guided EPS range of -$0.40 to $0.50.
“Full-year 2026 per share guidance reflects the expectation of a more constructive supply-demand environment and productivity gains beginning in the second quarter.”
It pointed out that unit costs, excluding fuel, are “expected to ease as the year progresses as the Company right-sizes its fleet and generates benefits from the targeted cost savings as noted in the prior section.”
