Frontier Group Holdings Inc. (ULCC) saw its shares plummet 5.03% during intraday trading on Wednesday. The sharp decline came as the market digested the airline's fourth-quarter 2025 financial results and, more significantly, its forward-looking guidance for 2026.
While Frontier reported Q4 adjusted earnings of $0.23 per share, beating the FactSet consensus estimate of $0.13, and revenue of $997 million, which also exceeded expectations, investor focus shifted to the company's outlook. The airline provided guidance for a full-year 2026 adjusted result ranging from a loss of $0.40 per share to earnings of $0.50 per share. This wide range fell short of the FactSet consensus estimate, which anticipated a much narrower loss of $0.02 per share.
The disappointing guidance overshadowed the positive Q4 earnings beat and drove the stock lower. The company also expects an adjusted loss for the first quarter of 2026, further contributing to investor concerns about near-term profitability despite management's efforts on fleet optimization and cost discipline.