Frontier Airlines quietly makes huge change amid financial woes

Frontier Airlines is well known as a low-cost airline that doesn’t necessarily have the best perks, but provides cheap flights to many popular destinations. Unfortunately, this business model hasn’t been working out well for Frontier or for other airlines in the same space.

While people continue to travel, costs are a big concern for many. Research from Nova Travel Group indicated that although 27% of travelers want to take more trips in 2026, many are shortening trips and being more selective about spending.

Many travelers are also on the higher end of the market, boosting business for premium airlines, but not budget carriers. This has left Frontier and similar rivals struggling to capture limited dollars, even as costs have risen.

“That ultra-low cost model is gone because they don’t have ultra-low costs,” aviation consultant Mike Boyd, president of Boyd Group International, told Yahoo Finance.

In this tough climate, Frontier Airlines quietly plans a major change that will affect travelers.

Frontier will be “significantly shrinking its planned fleet of new generation aircraft,” One Mile at a Time reported.

Here’s how that will look.

• Frontier will return a total of 24 leased A320neos early to AerCap. Those returned aircraft, which were supposed to be leased for between two and eight more years, will leave the airline’s fleet in the second quarter of 2026.

• For its 2028 and 2029 deliveries, AerCap has agreed to 10 future sale-leaseback transactions.

• Frontier will defer the delivery of 69 A320neo and A321neo aircraft it was scheduled to receive between 2027 and 2030. The aircraft will instead arrive between 2031 and 2033.

Related: TSA offers expensive fix for a major travel problem

One Mile at a Time attributes Frontier’s decisions to financial challenges within the budget airline industry.

“Frontier Airlines plans to considerably shrink its fleet, as the airline will be returning 24 leased aircraft early, while deferring delivery of 69 aircraft. Ultra low cost carriers have had a tough time, and while the business model is usually reliant on growth, that’s hard to do when that growth isn’t profitable.”

There’s a simple explanation for why Frontier Airlines has decided to reduce its fleet, according to One Mile At a Time. “The airline is losing money, and one way to reduce losses is to make the fleet smaller and focus on the most profitable routes.”

Frontier has clearly faced financial struggles, announcing a net loss of $137 million for 2025 during its February earnings call.

More Airlines:

“As we look ahead to fiscal 2026, we are encouraged by demand trends and are laser focused on returning Frontier to profitability, strengthening our competitive position and driving enhanced value for our stakeholders,” CEO Jimmy Dempsey said regarding the 2025 earnings report.

“To achieve this, we’re executing a strategy centered on four key priorities: rightsizing our fleet, strengthening our cost discipline, reducing cancellations and improving on-time performance, and maturing customer loyalty.”

While Frontier’s fleet is getting smaller, the airline reportedly still plans to add 23 new routes, according to Travel Pulse. This is good news for travelers.

Still, the fact remains that a smaller fleet inevitably means fewer options for flying, and it’s a bad sign for the future of low-budget airlines that Frontier has had to make these cuts.

If you prefer to travel on a discount airline, it makes sense to keep an eye on challenges the industry experiences, as these may affect your flying options going forward.

Related: TSA shares warning all travelers need to hear

This story was originally published by TheStreet on Feb 16, 2026, where it first appeared in the Travel section. Add TheStreet as a Preferred Source by clicking here.