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Frontier Cuts Leased Fleet and Defers Part of Airbus Backlog

Frontier Airlines Restructures Fleet and Defers Airbus Deliveries Amid Profitability Drive
Ultra-low-cost carrier Frontier Airlines has announced a strategic realignment of its fleet, involving a reduction in leased aircraft and the deferral of future Airbus deliveries. The move, disclosed on February 11, reflects the airline’s efforts under new CEO Jimmy Dempsey to “reset and stabilise the business” and return to profitability following a reported net loss of $137 million for 2025.
Fleet Reduction and Lease Restructuring
Frontier currently operates a fleet of 176 Airbus A320 and A321 aircraft, including both Ceos and Neos, all under operating leases set to expire between 2027 and 2037. As of February 1, the airline’s Airbus backlog stood at 160 aircraft, comprising 12 A320neos and 148 A321neos. This figure already accounted for a previous deferral of 54 deliveries from 2025-2028 to 2029-2031, announced in August 2024, alongside the cancellation of its A321XLR order.
In the latest development, Frontier has reached a non-binding agreement with lessor AerCap to return 24 Airbus aircraft in the second quarter of 2026, terminating leases two to eight years ahead of schedule. This early termination will incur one-time expenses but is expected to generate significant long-term savings. Additionally, AerCap will facilitate sale and leaseback arrangements for ten aircraft deliveries scheduled for 2028-2029, reinforcing its position as one of Frontier’s largest lessors.
CEO Dempsey emphasized the rationale behind the lease restructuring, stating, “We plan to take advantage of this by increasing utilisation across our remaining fleet to support our planned growth and drive efficiency.” He also expressed optimism about expanding the partnership with AerCap through additional sale and leaseback transactions.
Delivery Deferrals and Financial Outlook
Frontier has also entered a non-binding framework agreement with Airbus to defer the delivery of 69 A320neo family aircraft from 2027-2030 to 2031-2033. Dempsey described this adjustment as supporting “a more measured and sustainable long-term growth rate of approximately ten percent,” marking a significant moderation from the airline’s previous expansion plans.
Chief Financial Officer Mark Mitchell noted that, including the fleet transactions expected in the first quarter, Frontier anticipates maintaining a fleet size of 176 aircraft by the end of 2026, consistent with the year-end 2025 count. The planned early lease terminations will offset the 24 aircraft inductions scheduled for the year.
Both the lease restructuring and delivery deferrals are integral to Frontier’s strategic priority of enhancing cost discipline. The airline targets $200 million in annual run-rate cost savings by 2027, driven primarily by network optimisation, productivity improvements, and operational efficiencies. Approximately $90 million of these savings are expected to come from reduced rent expenses associated with the early lease terminations.
Market Position and Recent Performance
Despite ongoing challenges faced by US ultra-low-cost carriers, including subdued domestic demand, rising costs, and intensified competition from major airlines offering more attractive products, Frontier’s performance remains comparatively stable. The airline reported a $53 million profit in the December quarter of 2025, marking its first quarterly profit of the year and the first since the final quarter of 2024. Operating revenues for the quarter reached $997 million, slightly below the $1.002 billion recorded in the same period the previous year.
However, the full-year 2025 net loss of $137 million contrasts with a modest profit of $85 million in 2024, underscoring the financial pressures the carrier continues to navigate amid a challenging market environment.

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