On its second quarter earnings call on Tuesday, Frontier Airlines said it was expecting to see bigger financial losses throughout the third quarter of the year than previously predicted.
The Denver-based low-cast airline said it expects its third quarter adjusted loss per share to be between 26 cents and 42 cents, according to Reuters. Analysts had been estimating a loss of about 11 cents per share.
The low-cost carrier was one of several United States airlines that pulled its annual financial forecast back in April 2025 amid growing economic uncertainty stemming from President Trump’s tariff policies. The uncertainty has caused months of softening demand for travel.
Demand for domestic economy seats has been especially weak in recent months, which has an outsized effect on a budget carrier like Frontier. Additionally, summer is generally one of the most important profit periods for an airline, but tepid fare sales this summer have made some carriers’ bottom lines even shakier.
Frontier said it would continue to cut its capacity through the end of the year to match the decrease in demand. The carrier plans to cut its fall capacity by 3% to 5% compared to fall 2024. Early in the second quarter of 2025, Frontier made similar moves to cut flight capacity to help shore up its operations and profitability.
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