Frontier Group stock soars on Q4 earnings

Shares of budget airline Frontier Group (ULCC) climbed Tuesday after the company posted break-even fourth quarter earnings, beating analyst expectations of a 23 cent loss. Revenue was just shy of expectations.

Yahoo Finance's Julie Hyman and Josh Lipton break down the details.

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Editor's note: This article was written by Angel Smith

Video transcript

JOSH LIPTON: Finally, let's check out Frontier shares, they are flying higher, nice, after reporting break-even earnings as revenue came fairly in line with estimates for the fourth quarter. So the budget carrier here, Julie, their reports, investors like what they see. Q4 sales beat quarterly loss narrower than the street guessed on the call, and that was important, too. Execs were talking about revenue trends improving and their expectations that they should continue to improve. And in fact, today, off that report, you saw a number of budget airlines actually moving higher in today's trade sort of in sympathy with that.

JULIE HYMAN: Yeah, there were some cost controls that the company talked about as well. And that was something that analysts liked. I just want to point out here just quickly, when we look at Frontier, remember there was a battle between Frontier and JetBlue to acquire Spirit. Frontier lost that battle. Although, as we saw, that situation did not turn out very well because it looks like that other deal is not going to be consummated. Still, though, they canceled that deal back in July of 2022, Frontier did. And it's still down more than 40% from those levels.

JOSH LIPTON: All right, one to watch.