Frontier Airlines: Turbulence Ahead With Overcapacity, Climbing Costs [Seeking Alpha]
Frontier Group Holdings, Inc. (ULCC)
Company Research
Source: Seeking Alpha
Follow Play 9min Summary Frontier stock is down 65% since its IPO due to overcapacity and rising costs. Operating expenses surged, including fuel costs (+18%), labor (+16%), and station operations costs (31%). The company deferred 54 aircraft deliveries to 2029-2031, indicating that its current capacity is above demand and slowing fuel efficiency improvements. Ancillary revenue dropped 13%, signaling a potential consumer behavior shift. Despite weak insider/institutional confidence, I maintain a Hold rating for this stock due to solid cash position compared to interest-bearing debt. Florida Chuck/iStock Editorial via Getty Images Frontier Group Holdings, Inc. ( NASDAQ: ULCC ) is currently trading around 65% below its IPO price of $18.85 per share since going public in April 2021. It seems that the company is facing strong headwinds, including an oversupply of seats in the US domestic market, and an increase in operating expenses, including fuel costs, wages, and
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ULCC
News
- Frontier Group Holdings, Inc. (NASDAQ: ULCC) had its price target raised by analysts at Barclays PLC from $7.00 to $10.00. They now have an "overweight" rating on the stock.MarketBeat
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- Frontier Group Holdings, Inc. (NASDAQ: ULCC) had its price target raised by analysts at Susquehanna from $5.00 to $6.00. They now have a "neutral" rating on the stock.MarketBeat
- Frontier Group Holdings, Inc. (NASDAQ: ULCC) had its price target raised by analysts at Barclays PLC from $6.00 to $7.00. They now have an "overweight" rating on the stock.MarketBeat
ULCC
Earnings
- 10/29/24 - Miss
ULCC
Sec Filings
- 11/15/24 - Form 4
- 11/14/24 - Form 144
- 11/13/24 - Form SC
- ULCC's page on the SEC website