Frontier Airlines has reported its fourth-quarter and full-year results.
The airline's net income for the fourth quarter was $53 million, somewhat flat from its $54 million result a year prior. Revenues were relatively flat, totalling $997 million, compared to $1bn a year prior. Expenses totalled $948 million, down slightly from $957 million.
Pre tax income totalled $52 million, relatively flat compared to $51 million in fourth-quarter 2024.
For the full-year, Frontier reported a net loss of $137 million, plummeting from its net profit of $85 million in 2024. Pre-tax losses totalled $134 million, swinging from a pre-tax profit of $86 million in 2024.
Revenues in the year were flat, totalling $3.7bn in 2025 — compared to $3.8bn in 2024. Expenses totalled $3.9bn, up from $3.7bn in 2024.
Frontier also disclosed it has reached an agreement with AerCap to terminate 24 aircraft leases. The leases were originally due to expire in the next two to eight years.
The 24 aircraft are expected to be returned in the second quarter of 2026. AerCap has also committed to 10 future sale-leaseback transactions for deliveries scheduled for the years 2028 and 2029.
Frontier has reached a non-binding framework agreement with Airbus to defer 69 A320neo family aircraft. These aircraft were due to be delivered between 2027 and 2030. They are now scheduled to be delivered in 2031 through 2033.
During the company's earnings call, management said AerCap will still remain its largest lessor.
“Over the medium term, Frontier will probably diversify somewhat from sale and leaseback financing,” said Frontier CEO, president and director James Dempsey. "In the immediate term, we've largely financed most of the fleet that's coming this year and I don't see any near-term change.
“I can see, over time, the company navigating to more balanced financing structures across the airline where we continue to have a high proportion of fleet financed with sale and leasebacks or financing, but bringing in some other forms of financing into the business. If it commercially makes sense, we should do it."
These agreements are expected to be finalised by the end of the first quarter. The airline will incur one-time non-cash expenses related to the lease cancellations. TD Cowen analysts Moshe Orenbuch and Burc Okumus said the the expense will likely be reserves that will accrue to AerCap.
“For the 10 sale-leasebacks with AER, current new A320neo pricing is around $58 million per aircraft, with a monthly lease rate of $385,000,” said the analysts. “This implies an investment of around $580 million for AER and would generate around $46 million in incremental annual lease revenue once deliveries are completed.”
The deferred and cancelled aircraft are expected to save around $200 million annually by 2027 as well as moderate the company's capacity by 10%.
For the first quarter of 2026, Frontier has guided an adjusted loss of 26 to 44 cents per share. Capacity is expected to be down 1-2%.
For the full year, the airline expects adjusted earnings per share (EPS) to be 40 cents loss per share, up to 50 cents per earnings share. Capacity is expected to be up around 10% for the year.
Pre-delivery deposits, net of refunds, are expected to be a negative $170 to $210 million. This is a result of the deferred Airbus deliveries.
“With that deposit level going down, the corresponding debt levels would go down as well, so helping the leverage ratios,” said Frontier CFO and senior VP Mark Mitchell.
Other capital expenditures are expected to total $200 to $250 million.
As of the end of the year, the company's total liquidity totalled $874 million, including $220 million from its recently expanded revolving credit facility.