Here's Why You Should Avoid Frontier Group Stock for Now

Frontier Group ULCC is facing mounting pressureon its bottom lineas rising costs and operational inefficiencies weigh on its financial performance, making it an unattractive choice for investors’ portfolios.Let’s delve deeper.ULCC: Key Risks to WatchSouthward Bottom Line Estimate Revision: The Zacks Consensus Estimate for the current-quarter loss, currently pegged at 35 cents per share, has widened from a loss of 9 cents, 30 days ago. Meanwhile, the Zacks Consensus Estimate for 2025 loss stands at 66 cents per share, much wider than the loss of 40 cents a month ago.The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.Dim Price Performance:  The company’s price trend reveals that its shares have declined 31.1% in the year-to-date period compared with the Transportation - Airline industry’s 11.7% growth.Image Source: Zacks Investment ResearchUnimpressive Earnings Surprise: ULCC has a mixed earnings surprise history, having outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missing the mark on the other occasions, with the average miss being 17.54%.Weak Zacks Rank: ULCC currently carries a Zacks Rank #4 (Sell).Other Headwinds: Frontier Airlines faced multiple headwinds in the second quarter of 2025 despite maintaining its commitment toward growth. The 8% year-over-year rise in CASM to 9.73 cents, driven primarily by a 13% decline in average daily aircraft utilization, lower sale-lease back gains, and fleet growth timing, pressured cost performance. Even CASM excluding fuel climbed sharply to 7.50 cents from 6.24 cents in the prior-year quarter, signalling broad-based cost pressures beyond just fuel prices.Additionally, a net loss of $70 million underscores profitability challenges as expenses outpaced revenue growth despite efficiency gains like higher ASMs per gallon. The lower-capacity deployment is likely to hurt revenues in the near term, further magnifying cost impacts.Airline Stocks to ConsiderInvestors interested in the airline industry may consider LATAM Airlines Group LTM and SkyWest SKYW.LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.SKYW currently sports a Zacks Rank #1.SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report Frontier Group Holdings, Inc. (ULCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks