Citing strong performance in the wake of the U.S. government shutdown, Frontier Airlines expects its fourth quarter results to be at the high end of previously issued guidance.
The carrier was projecting earnings per share to range between $0.04 and $0.20 for the three months ended Dec. 31, 2025. Its expectations of achieving the upper end now “reflects strong revenue performance as the quarter progressed, overcoming the impact of the government shutdown,” Frontier said on Jan. 8.
At the same time, the company announced its board has elected president and interim CEO James Dempsey to serve in the permanent role. Dempsey was promoted on an interim basis in mid-December, replacing longtime CEO Barry Biffle.
“Jimmy has demonstrated over his more than a decade at Frontier that he’s the right leader to drive our airline forward,” Board Chair Bill Franke said of Dempsey. “His expertise will help us capitalize on the opportunities we see ahead, preserve our industry-leading cost advantage and guide Frontier into the future.”
Dempsey said he looked forward to the next chapter, calling the present “an exciting time at Frontier as we kick off 2026.”
The Denver-based ULCC spent much of 2025 advancing a “New Frontier” initiative focused on offering new premium and loyalty benefits, while evaluating more and preparing to launch new first class seating. Frontier also renewed attempts to acquire budget rival Spirit Airlines in January 2025 but was rebuffed after a back-and-forth. Conversations resumed before the year closed out, according to a Bloomberg report.
By mid-December 2025, three months into a repeat restructuring process, Spirit was “in active negotiations” on two possibilities, it confirmed—progress on a standalone plan of reorganization, or a strategic transaction such as a merger or acquisition. If and how Frontier may play a role remains to be seen.
“The market has been waiting to see the outcome of potential merger discussions with Spirit,” noted Raymond James Analyst Savanthi Syth in a report reacting to Frontier’s guidance update. “We have been expecting an update (one way or the other) by the end of January. Further, we note the past two times Frontier had announced a merger offer for Spirit (in 2022 and 2025), it had been preceded by a guidance update.”
Related Content
