Record total revenue driven by strong demand and continued execution of commercial strategy
Increased RASM 30 percent and total revenue over 50 percent year-over-year
DENVER, Oct. 28, 2026 /PRNewswire/ -- Frontier Group Holdings, Inc. (Nasdaq: ULCC), parent company of Frontier Airlines, Inc., today reported financial results for the third quarter of 2026 and issued guidance for the fourth quarter of 2026.
Third Quarter and Year-to-Date Select Financial Highlights
The following tables summarize select financial results for the three and nine months ended September 30, 2026 and 2025, including both GAAP and adjusted (non-GAAP) metrics. Refer to "Reconciliations of Non-GAAP Financial Information" in the appendix of this release.
(unaudited, in millions, except for percentages and per share data) | |||||||||||
Three Months Ended September 30, | |||||||||||
2026 | 2025 | ||||||||||
As Reported | Adjusted (Non-GAAP) | As Reported | Adjusted (Non-GAAP) | ||||||||
Total operating revenues | $ 1,355 | $ 1,355 | $ 886 | $ 886 | |||||||
Revenue per available seat mile ("RASM") | 11.87 | 9.14 | 30 % | 11.22 | 9.10 | 23 % | |||||
RASM, stage-length adjusted to 1,000 miles (¢)(c) | 11.21 | 8.76 | 28 % | 10.61 | 8.77 | 21 % | |||||
Adjusted fare revenue per passenger ($)(b) | 67.82 | 39.74 | 71 % | 62.46 | 41.70 | 50 % | |||||
Adjusted non-fare passenger revenue per passenger ($)(b) | 67.47 | 62.78 | 7 % | 66.29 | 65.18 | 2 % | |||||
Adjusted other revenue per passenger ($)(b) | 2.93 | 3.92 | (25) % | 4.04 | 3.68 | 10 % | |||||
Adjusted total ancillary revenue per passenger ($)(b) | 70.40 | 66.70 | 6 % | 70.33 | 68.86 | 2 % | |||||
Adjusted total revenue per passenger ($)(b) | 138.22 | 106.44 | 30 % | 132.79 | 110.56 | 20 % | |||||
Adjusted RASM (¢)(b) | 11.87 | 9.14 | 30 % | 11.44 | 9.10 | 26 % | |||||
Adjusted RASM, stage-length adjusted to 1,000 miles (¢)(b)(c) | 11.21 | 8.76 | 28 % | 10.83 | 8.77 | 23 % | |||||
Cost per available seat mile ("CASM")(b) | 9.09 | 7.53 | 21 % | 9.23 | 7.42 | 24 % | |||||
CASM + net interest (¢)(b) | 12.78 | 9.94 | 29 % | 12.70 | 9.73 | 31 % | |||||
Adjusted CASM (¢)(b) | 11.56 | 9.95 | 16 % | 11.64 | 9.77 | 19 % | |||||
Adjusted CASM (excluding fuel) (¢)(b) | 7.84 | 7.53 | 4 % | 8.15 | 7.42 | 10 % | |||||
Adjusted CASM (excluding fuel), stage-length adjusted to 1,000 miles (¢)(b)(c) | 7.40 | 7.21 | 3 % | 7.71 | 7.15 | 8 % | |||||
Adjusted CASM + net interest (¢)(b) | 11.52 | 9.94 | 16 % | 11.61 | 9.73 | 19 % | |||||
Adjusted CASM + net interest, stage-length adjusted to 1,000 miles (¢)(b)(c) | 10.87 | 9.52 | 14 % | 10.98 | 9.37 | 17 % | |||||
Fuel cost per gallon ($) | 3.96 | 2.54 | 56 % | 3.70 | 2.48 | 49 % | |||||
Fuel gallons consumed (thousands) | 107,214 | 92,188 | 16 % | 304,965 | 282,827 | 8 % | |||||
Full-time equivalent employees | 8,187 | 7,535 | 9 % | 8,187 | 7,535 | 9 % | |||||
(a) | Figures may not recalculate due to rounding. | ||||
(b) | These metrics are not calculated in accordance with GAAP. For the reconciliation to corresponding GAAP measures, see section "Reconciliations of Non-GAAP Financial Information." | ||||
(c) | Stage-Length Adjusted (SLA) to 1,000 miles: Applicable Operating Statistic * Square root (stage length / 1,000). | ||||
Reconciliations of Non-GAAP Financial Information
The Company is providing below a reconciliation of GAAP financial information to the non-GAAP financial information provided. The non-GAAP financial information is included to provide supplemental disclosures because the Company believes they are useful additional indicators of, among other things, its operating and cost performance. These non-GAAP financial measures have limitations as analytical tools. Because of these limitations, determinations of the Company's operating performance, RASM or CASM excluding unrealized gains and losses, special items or other items should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. These non-GAAP financial measures may be presented on a different basis than other companies using similarly titled non-GAAP financial measures.
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Income (Loss) Before Income | |||||||
Three Months Ended | Nine Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net income (loss), as reported | $ (104) | $ (77) | $ (466) | $ (190) | |||
Non-GAAP Adjustments: | |||||||
TSA Reserve(a) | - | - | 73 | - | |||
Early Return Agreement(b) | 3 | - | 212 | - | |||
Second Early Return Agreement(c) | 134 | - | 134 | - | |||
Collective Bargaining Contract Ratification(d) | 6 | - | 6 | - | |||
Pre-tax impact | 143 | - | 425 | - | |||
Tax benefit (expense), related to non-GAAP adjustments | 1 | - | (9) | - | |||
Net income (loss) impact | $ 144 | $ - | $ 416 | $ - | |||
Adjusted net income (loss)(e) | $ 40 | $ (77) | $ (50) | $ (190) | |||
Income (loss) before income taxes, as reported | $ (104) | $ (76) | $ (479) | $ (186) | |||
Pre-tax impact | 143 | - | 425 | - | |||
Adjusted income (loss) before income taxes(e) | $ 39 | $ (76) | $ (54) | $ (186) | |||
(a) | The Company received a court ruling relating to the remittance of TSA fees for unused travel covering the 2016 to 2018 audit period that resulted in a $73 million charge that covers probable losses in prior years subject to audit that were recorded to passenger revenue within the condensed consolidated statement of operations during the nine months ended September 30, 2026. | ||||
(b) | The Company entered into an Early Return Agreement to early terminate the leases associated with 24 A320neo aircraft and as a result incurred non-recurring charges of $2 million in lease return costs recorded in aircraft rent and $1 million of commitment fees payable in future years recorded in interest expense within the condensed consolidated statement of operations during the three months ended September 30, 2026. The Company incurred $81 million of lease return costs recorded in aircraft rent; $73 million related to the write-off of non-recoverable capitalized prepaid maintenance balances recorded in maintenance, materials and repairs; $63 million of accelerated depreciation expense related to the remeasurement of useful lives of capitalized maintenance recorded in depreciation and amortization, $(6) million of a reversal of previously accrued lease return costs recorded in aircraft rent; and $1 million of commitment fees payable in future years recorded in interest expense within the condensed consolidated statement of operations during the nine months ended September 30, 2026. | ||||
(c) | The Company entered into a Second Early Return Agreement to early terminate the leases associated with 13 A320neo aircraft and as a result incurred non-recurring charges of $134 million within the condensed consolidated statement of operations during the three and nine months ended September 30, 2026. The $134 million includes $84 million of lease return costs recorded in aircraft rent; $31 million of accelerated depreciation expense related to the remeasurement of useful lives of capitalized maintenance recorded in depreciation and amortization; $26 million related to the write-off of non-recoverable capitalized prepaid maintenance balances recorded in maintenance, materials and repairs; and $(7) million of a reversal of previously accrued lease return costs recorded in aircraft rent. | ||||
(d) | The Company entered into an agreement with the union representing the Company's aircraft technicians effective September 2026, and as result incurred a one-time charge of $6 million related to a contract ratification incentive recorded in salaries, wages and benefit within the condensed consolidated statement of operations during the three months ended September 30, 2026. | ||||
(e) | Adjusted net income (loss) and adjusted income (loss) before income taxes are included as a supplemental disclosure because the Company believes they are useful indicators of its operating performance. Derivations of net income (loss) and income (loss) before income taxes are well-recognized performance measurements in the airline industry that are frequently used by the Company's management, as well as by investors, securities analysts and other interested parties, in comparing the operating performance of companies in the airline industry. | ||||
Adjusted net income (loss) and adjusted income (loss) before income taxes have limitations as analytical tools. Adjusted net income (loss) and adjusted income (loss) before income taxes do not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of the Company's ongoing operations and do not reflect the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments, and other companies in the industry may calculate adjusted net income (loss) and adjusted income (loss) before income taxes differently than the Company does, limiting their usefulness as comparative measures. Because of these limitations, adjusted net income (loss) and adjusted income (loss) before income taxes should not be considered in isolation from or as a substitute for performance measures calculated in accordance with GAAP. In addition, because derivations of adjusted net income (loss) and adjusted income (loss) before income taxes, including adjusted income (loss) before income taxes margin, are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of net income, including adjusted net income (loss) and adjusted income (loss) before income taxes, as presented may not be directly comparable to similarly titled measures presented by other companies. For the foregoing reasons, adjusted net income (loss) and adjusted income (loss) before income taxes have significant limitations which affect their use as indicators of the Company's profitability. Accordingly, you are cautioned not to place undue reliance on this information. | |||||
Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes, Depreciation and Amortization | |||||||
Three Months Ended | Nine Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net income (loss) | $ (104) | $ (77) | $ (466) | $ (190) | |||
Plus (minus): | |||||||
Interest expense | 12 | 15 | 34 | 34 | |||
Capitalized interest | (5) | (10) | (19) | (26) | |||
Interest income and other | (11) | (6) | (24) | (20) | |||
Income tax expense (benefit) | - | 1 | (13) | 4 | |||
Depreciation and amortization | 59 | 24 | 177 | 65 | |||
EBITDA(a) | (49) | (53) | (311) | (133) | |||
Plus: Aircraft rent | 301 | 181 | 832 | 536 | |||
EBITDAR(b) | $ 252 | $ 128 | $ 521 | $ 403 | |||
EBITDA(a) | $ (49) | $ (53) | $ (311) | $ (133) | |||
Plus (minus)(c): | |||||||
TSA Reserve | - | - | 73 | - | |||
Early Return Agreement(d) | 2 | - | 148 | - | |||
Second Early Return Agreement(d) | 103 | - | 103 | - | |||
Collective Bargaining Contract Ratification | 6 | - | 6 | - | |||
Adjusted EBITDA(a) | 62 | (53) | 19 | (133) | |||
Plus: Aircraft rent | 301 | 181 | 832 | 536 | |||
Minus: Early Return Agreement(e) | (2) | - | (75) | - | |||
Minus: Second Early Return Agreement(e) | (77) | - | (77) | - | |||
Adjusted EBITDAR(b) | $ 284 | $ 128 | $ 699 | $ 403 | |||
(a) | EBITDA and adjusted EBITDA are included as supplemental disclosures because the Company believes they are useful indicators of its operating performance. Derivations of EBITDA are well-recognized performance measurements in the airline industry that are frequently used by the Company's management, as well as by investors, securities analysts and other interested parties, in comparing the operating performance of companies in the industry. | ||||
EBITDA and adjusted EBITDA do not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of its ongoing operations; the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments; changes in, or cash requirements for, the Company's working capital needs; or the interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's indebtedness. Further, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and adjusted EBITDA do not reflect any cash requirements for such replacements. Other companies in the airline industry may calculate EBITDA and adjusted EBITDA differently than the Company does, limiting their usefulness as comparative measures. Because of these limitations, EBITDA and adjusted EBITDA should not be considered in isolation from or as a substitute for performance measures calculated in accordance with GAAP. In addition, because derivations of EBITDA and adjusted EBITDA are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of EBITDA, including adjusted EBITDA, as presented may not be directly comparable to similarly titled measures presented by other companies. | |||||
For the foregoing reasons, each of EBITDA and adjusted EBITDA have significant limitations which affect its use as an indicator of the Company's profitability. Accordingly, you are cautioned not to place undue reliance on this information. | |||||
(b) | EBITDAR and adjusted EBITDAR are included as supplemental disclosures because the Company believes they are useful solely as valuation metrics for airlines as their calculations isolate the effects of financing in general, the accounting effects of capital spending and acquisitions (primarily aircraft, which may be acquired directly, directly subject to acquisition debt, by capital lease or by operating lease, each of which is presented differently for accounting purposes), and income taxes, which may vary significantly between periods and for different airlines for reasons unrelated to the underlying value of a particular airline. However, EBITDAR and adjusted EBITDAR are not determined in accordance with GAAP, are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, EBITDAR and adjusted EBITDAR, as presented, may not be directly comparable to similarly titled measures presented by other companies. In addition, EBITDAR and adjusted EBITDAR should not be viewed as measures of overall performance since they exclude aircraft rent, which is a normal, recurring cash operating expense that is necessary to operate the business. Accordingly, you are cautioned not to place undue reliance on this information. | ||||
(c) | See "Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Income (Loss) Before Income Taxes to Adjusted Income (Loss) Before Income Taxes" above for discussion on adjusting items. | ||||
(d) | Represents lease termination costs and write-off of non-recoverable capitalized maintenance costs associated with the Early Return Agreements. | ||||
(e) | Represents lease termination costs related to aircraft rent associated with the Early Return Agreements. | ||||
Reconciliation of GAAP to Non-GAAP Financial Data | |||||||
Three Months Ended | |||||||
2026 | 2025 | ||||||
($ in millions) | PerASM (¢) | ($ in millions) | PerASM (¢) | ||||
Non-GAAP financial data:(a) | |||||||
CASM | 12.81 | 9.95 | |||||
Aircraft fuel | (425) | (3.72) | (234) | (2.42) | |||
CASM (excluding fuel)(b) | 9.09 | 7.53 | |||||
Early Return Agreement(c) | (2) | (0.03) | - | - | |||
Second Early Return Agreement(c) | (134) | (1.17) | - | - | |||
Collective Bargaining Contract Ratification(c) | (6) | (0.05) | - | - | |||
Adjusted CASM (excluding fuel)(b) | 7.84 | 7.53 | |||||
Aircraft fuel | 425 | 3.72 | 234 | 2.42 | |||
Adjusted CASM(d) | 11.56 | 9.95 | |||||
Net interest expense (income) | (4) | (0.03) | (1) | (0.01) | |||
Early Return Agreement(e) | (1) | (0.01) | - | - | |||
Adjusted CASM + net interest(f) | 11.52 | 9.94 | |||||
CASM | 12.81 | 9.95 | |||||
Net interest expense (income) | (4) | (0.03) | (1) | (0.01) | |||
CASM + net interest(f) | 12.78 | 9.94 | |||||
Adjusted CASM (excluding fuel)(b) | 7.84 | 7.53 | |||||
Sale-leaseback gains | 32 | 0.29 | 67 | 0.69 | |||
Adjusted CASM (excluding fuel and sale-leaseback gains)(b) | 8.13 | 8.22 | |||||
Adjusted CASM (excluding fuel and sale-leaseback gains), stage-length adjusted to 1,000 miles(b)(g) | 7.67 | 7.87 | |||||
(a) | Cost per ASM figures may not recalculate due to rounding. | ||||
(b) | CASM (excluding fuel), adjusted CASM (excluding fuel), and adjusted CASM (excluding fuel and sale-leaseback gains) are included as supplemental disclosures because the Company believes that excluding aircraft fuel is useful to investors as it provides an additional measure of management 's performance excluding the effects of a significant cost item over which management has limited influence. The price of fuel, over which the Company has limited control, impacts the comparability of period-to-period financial performance, and excluding allows management an additional tool to understand and analyze the Company's non-fuel costs and core operating performance, and increases comparability with other airlines that also provide a similar metric. Likewise, excluding sale-leaseback gains, in addition to fuel, allows management an additional tool to understand and analyze the Company's performance and increases comparability with other airlines. CASM (excluding fuel), adjusted CASM (excluding fuel), adjusted CASM (excluding fuel and sale-leaseback gains) are not determined in accordance with GAAP and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | ||||
(c) | See "Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Income (Loss) Before Income Taxes to Adjusted Income (Loss) Before Income Taxes" above for discussion on adjusting items. | ||||
(d) | Adjusted CASM is included as supplemental disclosure because the Company believes it is a useful metric to properly compare the Company's cost management and performance to other peers, as derivations of adjusted CASM are well-recognized performance measurements in the airline industry that are frequently used by the Company's management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in the airline industry. Additionally, the Company believes this metric is useful because it removes certain items that may not be indicative of base operating performance or future results. Adjusted CASM is not determined in accordance with GAAP, may not be comparable across all carriers and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | ||||
(e) | In connection with the Early Return Agreement, the Company incurred charges of $1 million of commitment fees related to lease return costs payable in future years recorded in interest expense within the condensed consolidated statement of operations during the nine months ended September 30, 2026. | ||||
(f) | Adjusted CASM including net interest and CASM including net interest are included as supplemental disclosures because the Company believes they are useful metrics to properly compare its cost management and performance to other peers that may have different capital structures and financing strategies, particularly as it relates to financing primary operating assets such as aircraft and engines. Additionally, the Company believes these metrics are useful because they remove certain items that may not be indicative of base operating performance or future results. Adjusted CASM including net interest and CASM including net interest are not determined in accordance with GAAP, may not be comparable across all carriers and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | ||||
(g) | Stage-Length Adjusted (SLA) to 1,000 miles: Applicable Operating Statistic * Square root (stage length / 1,000). | ||||
Reconciliation of GAAP to Non-GAAP Financial Data | |||||||
Nine Months Ended | |||||||
2026 | 2025 | ||||||
($ in millions) | PerASM (¢) | ($ in millions) | PerASM (¢) | ||||
Non-GAAP financial data:(a) | |||||||
RASM | 11.22 | 9.10 | |||||
TSA Reserve(b) | 73 | 0.22 | - | - | |||
Adjusted RASM (¢)(c) | 11.44 | 9.10 | |||||
CASM | 12.73 | 9.77 | |||||
Aircraft fuel | (1,129) | (3.50) | (702) | (2.35) | |||
CASM (excluding fuel)(d) | 9.23 | 7.42 | |||||
Early Return Agreement(b) | (211) | (0.65) | - | - | |||
Second Early Return Agreement(b) | (134) | (0.41) | - | - | |||
Collective Bargaining Contract Ratification(b) | (6) | (0.02) | - | - | |||
Adjusted CASM (excluding fuel)(d) | 8.15 | 7.42 | |||||
Aircraft fuel | 1,129 | 3.49 | 702 | 2.35 | |||
Adjusted CASM(e) | 11.64 | 9.77 | |||||
Net interest expense (income) | (9) | (0.03) | (12) | (0.04) | |||
Early Return Agreement(f) | (1) | - | - | - | |||
Adjusted CASM + net interest(g) | 11.61 | 9.73 | |||||
CASM | 12.73 | 9.77 | |||||
Net interest expense (income) | (9) | (0.03) | (12) | (0.04) | |||
CASM + net interest(g) | 12.70 | 9.73 | |||||
(a) | Revenue and cost per ASM figures may not recalculate due to rounding. | ||||
(b) | See "Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Income (Loss) Before Income Taxes to Adjusted Income (Loss) Before Income Taxes" above for discussion on adjusting items. | ||||
(c) | Adjusted RASM is included as a supplemental disclosure because the Company believes it is a useful metric to properly compare its revenue performance to its peers, as RASM metrics are well-recognized performance measurements in the airline industry that are frequently used by the Company's management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in the airline industry. Additionally, the Company believes this metric is useful because it removes certain items that may not be indicative of base operating performance or future results. Adjusted RASM is not determined in accordance with GAAP, may not be comparable across all carriers and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | ||||
(d) | CASM (excluding fuel) and adjusted CASM (excluding fuel) are included as supplemental disclosures because the Company believes that excluding aircraft fuel is useful to investors as it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. The price of fuel, over which the Company has limited control, impacts the comparability of period-to-period financial performance, and excluding fuel allows management an additional tool to understand and analyze the Company's non-fuel costs and core operating performance, and increases comparability with other airlines that also provide a similar metric. CASM (excluding fuel) and adjusted CASM (excluding fuel) are not determined in accordance with GAAP and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | ||||
(e) | Adjusted CASM is included as supplemental disclosure because the Company believes it is a useful metric to properly compare the Company's cost management and performance to other peers, as derivations of adjusted CASM are well-recognized performance measurements in the airline industry that are frequently used by the Company's management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in the airline industry. Additionally, the Company believes this metric is useful because it removes certain items that may not be indicative of base operating performance or future results. Adjusted CASM is not determined in accordance with GAAP, may not be comparable across all carriers and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | ||||
(f) | In connection with the Early Return Agreement, the Company incurred charges of $1 million of commitment fees related to lease return costs payable in future years recorded in interest expense within the condensed consolidated statement of operations during the nine months ended September 30, 2026. | ||||
(g) | Adjusted CASM including net interest and CASM including net interest are included as supplemental disclosures because the Company believes they are useful metrics to properly compare its cost management and performance to other peers that may have different capital structures and financing strategies, particularly as it relates to financing primary operating assets such as aircraft and engines. Additionally, the Company believes these metrics are useful because they remove certain items that may not be indicative of base operating performance or future results. Adjusted CASM including net interest and CASM including net interest are not determined in accordance with GAAP, may not be comparable across all carriers and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | ||||
Reconciliation of Revenue to Adjusted Revenue (unaudited) | |||||||
Nine Months Ended | |||||||
2026 | 2025 | ||||||
($ in millions) | Per Passenger $ | ($ in millions) | Per Passenger $ | ||||
Non-GAAP financial data:(a)(b) | |||||||
Fare revenue: | 1,727 | 62.01 | 1,028 | 41.70 | |||
TSA Reserve | 13 | 0.45 | - | - | |||
Adjusted fare revenue:(c) | 1,740 | 62.46 | 1,028 | 41.70 | |||
Non-fare passenger revenue: | 1,787 | 64.12 | 1,608 | 65.18 | |||
TSA Reserve | 60 | 2.17 | - | - | |||
Adjusted non-fare revenue:(c) | 1,847 | 66.29 | 1,608 | 65.18 | |||
Other revenue: | 112 | 4.04 | 91 | 3.68 | |||
TSA Reserve | - | - | - | - | |||
Adjusted other revenue:(c) | 112 | 4.04 | 91 | 3.68 | |||
Total ancillary revenue: | 1,899 | 68.16 | 1,699 | 68.86 | |||
TSA Reserve | 60 | 2.17 | - | - | |||
Adjusted total ancillary revenue:(c) | 1,959 | 70.33 | 1,699 | 68.86 | |||
Total revenue: | 3,626 | 130.17 | 2,727 | 110.56 | |||
TSA Reserve | 73 | 2.62 | - | - | |||
Adjusted total revenue:(c) | 3,699 | 132.79 | 2,727 | 110.56 | |||
(a) | Revenue per passenger figures may not recalculate due to rounding. | |||||
(b) | See "Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Income (Loss) Before Income Taxes to Adjusted Income (Loss) Before Income Taxes" above for discussion on adjusting items. | |||||
(c) | Adjusted fare revenue, adjusted non-fare revenue, adjusted other revenue, adjusted total ancillary revenue and adjusted total revenue, and respective metrics per passenger, (collectively, "revenue per passenger") are included as supplemental disclosures because the Company believes they are useful metrics to properly compare its revenue performance to its peers, as revenue per passenger metrics are well-recognized performance measurements in the airline industry that are frequently used by the Company's management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in the airline industry. Additionally, the Company believes these metrics are useful because they remove certain items that may not be indicative of base operating performance or future results. These metrics are not determined in accordance with GAAP, may not be comparable across all carriers and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. | |||||
Reconciliation of Earnings (Loss) per Share, Diluted to Adjusted Earnings (Loss) per Share, Diluted | |||||||
Three Months Ended | Nine Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Earnings (loss) per share, diluted, as reported(a)(b) | $ (0.45) | $ (0.34) | $ (2.03) | $ (0.84) | |||
TSA Reserve | - | - | 0.32 | - | |||
Early Return Agreement | 0.02 | - | 0.93 | - | |||
Second Early Return Agreement | 0.57 | - | 0.58 | - | |||
Collective Bargaining Agreement Ratification | 0.03 | - | 0.02 | - | |||
Tax benefit (expense), related to non-GAAP adjustments | 0.01 | - | (0.04) | - | |||
Adjusted earnings (loss) per share, diluted(c) | $ 0.18 | $ (0.34) | $ (0.22) | $ (0.84) | |||
(a) | Cost per share figures may not recalculate due to rounding. | ||||
(b) | See "Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Income (Loss) Before Income Taxes to Adjusted Income (Loss) Before Income Taxes" above for discussion on adjusting items. | ||||
(c) | Adjusted earnings (loss) per share is included as a supplemental disclosure because the Company believes it is a useful indicator of operating performance. Derivations of net income are well-recognized performance measurements in the airline industry that are frequently used by management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in the industry. | ||||
Adjusted earnings (loss) per share has limitations as an analytical tool. Adjusted earnings (loss) per share does not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations and does not reflect the cash expenditures, or future requirements, for capital expenditures or contractual commitments, and other companies in the industry may calculate Adjusted earnings (loss) per share differently than the Company does, limiting its usefulness as a comparative measure. Because of these limitations, Adjusted earnings (loss) per share should not be considered in isolation from or as a substitute for performance measures calculated in accordance with GAAP. In addition, because derivations of adjusted net income are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of net income, including Adjusted earnings (loss) per share, as presented may not be directly comparable to similarly titled measures presented by other companies. For the foregoing reasons, Adjusted earnings (loss) per share has significant limitations which affect its use as an indicator of profitability. Accordingly, you are cautioned not to place undue reliance on this information. | |||||
Reconciliation of Total Operating Expenses to Total Operating Expenses (excluding fuel), | |||||||
Three Months Ended | Nine Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Total operating expense, as reported(a) | $ 1,463 | $ 963 | $ 4,114 | $ 2,925 | |||
Early Return Agreement | (2) | - | (211) | - | |||
Second Early Return Agreement | (134) | - | (134) | - | |||
Collective Bargaining Agreement Ratification | (6) | - | (6) | - | |||
Adjusted total operating expenses(b) | 1,321 | 963 | 3,763 | 2,925 | |||
Aircraft fuel | (425) | (234) | (1,129) | (702) | |||
Adjusted total operating expenses (excluding fuel)(b) | $ 896 | $ 729 | $ 2,634 | $ 2,223 | |||
Total operating expenses, as reported | $ 1,463 | $ 963 | $ 4,114 | $ 2,925 | |||
Aircraft fuel | (425) | (234) | (1,129) | (702) | |||
Total operating expense (excluding fuel)(b) | $ 1,038 | $ 729 | $ 2,985 | $ 2,223 | |||
(a) | See "Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Income (Loss) Before Income Taxes to Adjusted Income (Loss) Before Income Taxes" above for discussion on adjusting items. | ||||
(b) | Total operating expenses (excluding fuel), adjusted total operating expenses and adjusted total operating expenses (excluding fuel) are included as supplemental disclosures because the Company believes they are useful indicators of its operating performance. Derivations of total operating expenses are well-recognized performance measurements in the airline industry that are frequently used by the Company's management, as well as by investors, securities analysts and other interested parties, in comparing the operating performance of companies in the airline industry. | ||||
Total operating expenses (excluding fuel), adjusted total operating expenses and adjusted total operating expenses (excluding fuel) have limitations as analytical tools and other companies in the industry may calculate total operating expenses (excluding fuel), adjusted total operating expenses and adjusted total operating expenses (excluding fuel) differently than the Company does, limiting their usefulness as comparative measures. Because of these limitations, total operating expenses (excluding fuel), adjusted total operating expenses and adjusted total operating expenses (excluding fuel) should not be considered in isolation from or as a substitute for performance measures calculated in accordance with GAAP. In addition, because derivations of total operating expenses (excluding fuel), adjusted total operating expenses and adjusted total operating expenses (excluding fuel) are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of total operating expenses, including total operating expenses (excluding fuel), adjusted total operating expenses and adjusted total operating expenses (excluding fuel) as presented may not be directly comparable to similarly titled measures presented by other companies. For the foregoing reasons, total operating expenses (excluding fuel), adjusted total operating expenses and adjusted total operating expenses (excluding fuel) have significant limitations which affect their use as an indicator of the Company's profitability. Accordingly, you are cautioned not to place undue reliance on this information. | |||||
SOURCE Frontier Group Holdings, Inc.
