Why Shares in Frontier Are Sliding This Week
Shares in airline Frontier Group Holdings (NASDAQ: ULCC) were down 13% for the week as of Thursday at 11 a.m. ET. The move comes in a deteriorating environment for the budget carrier.
Frontier's fellow budget airline Spirit Airlines lowered its third-quarter guidance in mid-September because of rising fuel costs and a lower revenue outlook due to "steep discounting" ahead of Thanksgiving. It's hard to think that Frontier won't be similarly affected.
Moreover, market demand appears to have shifted toward premium cabins as consumers and corporate travelers are willing to pay extra to catch up on travel plans shelved during the pandemic.
Source Fool.com
