Why Frontier Airlines Stock Is Down Today
Frontier Group Holdings (NASDAQ: ULCC) lost less money than expected in the first quarter, but in the report it delivered after the bell Wednesday, management trimmed its growth outlook and warned of cost pressures. Concerned investors sent shares of Frontier down by as much as 20% on Thursday morning. As of 1:10 p.m. ET, shares were still off by 18.3%.
Frontier lost $0.06 per share in the first quarter on revenue of $848 million. The loss was $0.02 per share less than expected, and revenue was up 40% year over year.
But Frontier also said it is adjusting its capacity plans for the months to come to reflect post-pandemic demand trends, and management said it expects some inflationary cost pressures up ahead. Specifically, Frontier is seeing lower traffic on Tuesdays and Wednesdays, and higher demand closer to weekends.
Source Fool.com
