1211 ET - Given the current state of the airline industry, Frontier Group's 1Q update--in which the budget carrier forecast lower-than-expected revenue and said it would reduce its capacity in the quarter ahead--didn't come as much of a surprise, UBS analysts say in a research note. Travel demand dropped off in March, and the analysts note that Frontier's projection for flattish revenue per available seat miles despite easier year-over-year comparisons could signal that sales fell in the high-single-digit range in recent weeks. Looking forward, April could stand to benefit from the timing of the Easter holiday. The company will cull supply on off-peak days and appears open to further capacity reductions if demand continues to slow. "In an unsurprising move, (Frontier) pulled its FY guidance citing the current uncertain backdrop," the analysts write. Shares fall 12%. (connor.hart@wsj.com)
(END) Dow Jones Newswires
April 11, 2025 12:11 ET (16:11 GMT)
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