Frontier Group Stock Soars 15% After Record Quarterly Revenues, Upbeat Q4 Earnings: Retail’s Exuberant

Shares of Frontier Group Holdings Inc (ULCC) soared nearly 15% on Friday, hitting a one-and-a-half-year high after the company’s fourth-quarter earnings topped Wall Street estimates and revenue hit record highs.

Frontier reported a 12% rise in its total operating revenue to a record billion dollars compared to a Wall Street estimate of $986.50 million.

Adjusted earnings per share (EPS) came in at $0.23 compared to an analyst estimate of $0.13.

Net income for the quarter was $54 million, compared to a net loss of $37 million in the same quarter a year ago.

Revenue per available seat mile (RASM) rose 15% year-over-year (YoY) to $0.1023 during the quarter. This was largely driven by the firm’s disciplined capacity deployment focused on peak days of the week, continued progress on the revenue and network initiatives, combined with the overall moderation in industry capacity growth.

CEO Barry Biffle said the firm’s revenue and network initiatives contributed to record fourth-quarter revenue, setting it on a trajectory for significant year-over-year RASM growth in 2025. “(This) underpins our target of achieving double-digit adjusted pre-tax margins in the summer of 2025,” he said.

The cost per available seat mile stood at $0.0978 in the fourth quarter, compared to $0.0893 in the corresponding 2023 quarter.

The company expects first-quarter adjusted EPS at breakeven to $0.07 and sees full-year EPS to hit at least $1.

On Stocktwits, retail sentiment climbed further into the ‘extremely bullish’ territory (91/100) accompanied by massive retail chatter.

ULCC’s Sentiment Meter and Message Volume as of 9:46 a.m. ET on Feb. 7, 2025 | Source: Stocktwits

ULCC shares have gained over 28% in 2025 and have risen over 34% in the past year.

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