Frontier Beats Quarterly Profit Estimates, Defers Jet Deliveries

Frontier Group, the parent company of budget carrier Frontier Airlines, exceeded Wall Street estimates for second-quarter profit and announced it will defer the delivery of 54 Airbus jets, as reported by Shivansh Tiwary and Nathan Gomes for Reuters.

Frontier's profit beat was supported by tighter cost-control measures, which included simplifying its network. I Photo: Frontier Airlines Facebook or Denver International Airport

Airlines in the U.S. are experiencing a summer travel boom and expect to transport 271 million passengers during the season, a 6.3% increase over last year, according to Airlines for America, a group representing major carriers.

However, carriers have increased seating capacity in the domestic market beyond demand, which has put pressure on airfares at the price-sensitive end of the market.

Frontier's profit beat was supported by tighter cost-control measures, which included simplifying its network.

The airline also benefited from its sale and leaseback deals during the quarter.

Frontier recently announced that it would defer the delivery of 54 Airbus jets to between 2029 and 2031. The company had previously expected to receive the jets between 2025 and 2028.