SCHIPHOL-RIJK (dpa-AFX) - Frontier Group Holdings (ULCC), parent company of Frontier Airlines, announced a non-binding agreement with AerCap Holdings N.V. (AER) for the early return of 24 A320neo aircraft currently in operation, all of which have lease agreements scheduled to expire within the next two to eight years. The 24 returns are expected to be completed during the second quarter of 2026. In turn, AerCap will agree to 10 future sale-leaseback transactions for deliveries scheduled for the years 2028 and 2029.
Separately, the company reached a non-binding framework agreement with Airbus SAS to defer the induction of 69 A320neo family aircraft which were otherwise expected to be contractually delivered between 2027 and 2030. The deferred aircraft are rescheduled to be delivered in 2031 through 2033.
The company expects to incur certain one-time expenses associated with the completion of the lease termination agreement. Upon closing, the fleet modifications, among other identified cost saving opportunities, are targeted to generate annual run-rate cost savings of approximately $200 million by 2027 and moderate the company's long-term annual capacity growth to approximately 10 percent.
As of December 31, 2025, Frontier had a fleet of 176 Airbus single-aisle aircraft, all financed through operating leases that expire between 2027 and 2037.
For the first quarer, the company projects adjusted loss per share in a range of $0.26 to $0.44. For fiscal 2026, the company expects per share results between a loss of $0.40 and profit of $0.50.
In pre-market trading on NasdaqGS, Frontier shares are up 9.7 percent to $6.54.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
