Frontier Group (ULCC.O), the parent company of Frontier Airlines, has withdrawn its full-year 2025 guidance and warned of a first-quarter loss, citing weakened travel demand triggered by President Trump’s ongoing trade war.
This marks the second major U.S. airline—after Delta Air Lines—to abandon its annual outlook in just two days.
Key Points
Forecast pulled: Frontier had previously predicted an adjusted profit of at least $1.00 for 2025 and break-even Q1 earnings of $0.07/share.
Trade war impact: The escalating trade conflict has shaken global markets, dented consumer confidence, and hurt discretionary spending, including air travel.
Price wars intensify: With declining demand, airlines have ramped up fare discounts and promotions, eroding pricing power.
Steep fare drop: Airline fares fell 5.3% in March, the biggest monthly decline since September 2021, per U.S. Labor Department data.
The industry is entering a phase of heightened volatility, with concerns over consumer spending, global economic stability, and airline profitability.
