---
title: "Underperformance of Frontier Group Holdings Stock Persists Despite Upgrade"
description: "Frontier Airlines' stock has declined significantly despite an upgrade and a positive Q2 earnings outlook. The company plans for aggressive capacity expansion, but weakening unit revenues raise concer"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/209285636.md"
published_at: "2024-07-19T02:42:06.000Z"
---

# Underperformance of Frontier Group Holdings Stock Persists Despite Upgrade

> Frontier Airlines' stock has declined significantly despite an upgrade and a positive Q2 earnings outlook. The company plans for aggressive capacity expansion, but weakening unit revenues raise concerns. Earnings per share are expected to grow, but revisions have been mixed.

Frontier Airlines' stock has suffered a 38% decline since May, along with a 60% drop over a year. Despite a previous buy rating from the author, the airline's Q2 2024 earnings outlook reveals an aggressive capacity expansion of 12-14%, potentially higher than competitors. The company expects pre-tax margins of 3-6%, contrasting with Spirit Airlines' anticipated losses. Frontier's fleet grounding issues are minimal compared to Spirit's, benefiting from engine choice. Analysts forecast a 6.6% revenue growth for Q2, but downward revisions signal weakening unit revenues. Earnings per share are expected to grow by 55%, though revisions have been mixed.

### Related Stocks

- [ULCC.US - Frontier](https://longbridge.com/en/quote/ULCC.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Frontier's 2026 outlook points to potential profit on deep cost cuts | Frontier Group forecasts a potential profit for 2026, despite analysts predicting a loss, due to cost-cutting measures.  | [Link](https://longbridge.com/en/news/275622060.md) |
| Frontier Group Q4 revenue beats on constructive supply-demand environment | Frontier Group's Q4 operating revenue of $997 million surpassed analyst expectations of $973.56 million, with adjusted n | [Link](https://longbridge.com/en/news/275610232.md) |
| BUZZ-Frontier Group appoints new CEO; shares rise | Shares of Frontier Airlines’ parent company Frontier Grouprise nearly 3.4% to about $4.9 Board appoints James G. Dempsey | [Link](https://longbridge.com/en/news/271959715.md) |
| Frontier Group Holdings SVP Human Resources Steve Schuller Reports Disposal of Common Shares | Steve Schuller, SVP of Human Resources at Frontier Group Holdings Inc., reported the disposal of common shares. The orig | [Link](https://longbridge.com/en/news/269571490.md) |
| Frontier Group Holdings CEO Barry Biffle Reports Sale of Common Shares | Barry Biffle, CEO of Frontier Group Holdings Inc., reported the sale of common shares of the company. The filing is avai | [Link](https://longbridge.com/en/news/269571315.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
