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Frontier Group Holdings Lowers Q1 2025 Revenue Guidance

Story Highlights
  • Frontier expects first-quarter 2025 revenue growth of five percent, lower due to weakened demand.
  • The company is reducing capacity and focusing on liquidity management amid uncertain conditions.
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The latest announcement is out from Frontier Group Holdings ( (ULCC) ).

Frontier Group Holdings has updated its guidance for the first quarter of 2025, expecting a revenue growth of approximately five percent, which is lower than anticipated due to weakened demand in March. The company has responded by reducing scheduled capacity in the second quarter and focusing on maximizing liquidity through cost management. Preliminary results indicate a first-quarter adjusted pre-tax loss margin of about five percent and an adjusted net loss per share between $0.20 and $0.24. Total liquidity as of March 31, 2025, was approximately $885 million.

Spark’s Take on ULCC Stock

According to Spark, TipRanks’ AI Analyst, ULCC is a Neutral.

Frontier Group Holdings shows strengths in revenue growth and cost management, but faces challenges with profitability margins and cash flow generation. The stock price is in a bearish trend, and while valuation metrics are reasonable, the absence of a dividend yield may deter some investors. The earnings call provided a positive outlook with strategic improvements, contributing to the overall score.

To see Spark’s full report on ULCC stock, click here.

More about Frontier Group Holdings

Frontier Group Holdings, Inc. is the parent company of Frontier Airlines, Inc., which operates within the airline industry. The company focuses on providing low-cost air travel services and aims to maintain a significant cost advantage in the market.

YTD Price Performance: -43.57%

Average Trading Volume: 3,350,002

Technical Sentiment Signal: Strong Buy

Current Market Cap: $928.9M

For an in-depth examination of ULCC stock, go to TipRanks’ Stock Analysis page.

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