() -Frontier Group, the parent of U.S. discount carrier Frontier Airlines, forecast an unexpected second-quarter loss on Thursday, even as it said demand for May and early summer travel has now stabilized.
Trump’s trade policy and sweeping tariffs have sparked a global trade war and raised the odds of the world spiraling into recession, making customers hesitant to spend on travel.
Frontier has now set its sights on achieving profitability again during the latter part of this year, driven by reduced overall industry capacity, along with stringent control over costs and capital spending.
The economic downturn is creating headwinds for major U.S. airlines, which, just two months ago, were benefiting from strong travel demand and solid pricing across their networks.
Frontier forecast a second-quarter adjusted loss per share in the range of 23 cents to 37 cents, compared with analysts’ average expectations of a 15 cent profit, according to data compiled by LSEG.
It reported a wider-than-expected adjusted loss in the first quarter as its total revenue per passenger declined 6% from a year ago.
The company has reduced planned capacity for both the second quarter and the balance of 2025 to be down from a year ago, with adjustments focused on off-peak days of the week.
Frontier on Thursday said it will closely monitor the demand environment and make any further adjustments to capacity and related costs, as appropriate.
It chose not to offer a complete annual financial prediction, pointing to the uncertainties surrounding the demand projection for the remainder of the year.
The company reported an adjusted loss of 19 cents per share in the first quarter, as opposed to what analysts had anticipated at 9 cents per share.
(Reported by Shivansh Tiwary in Bengaluru; Edited by Alan Barona)
Leave a Reply