Frontier Airlines lands on the Nasdaq exchange

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Frontier Airlines CEO Barry Biffle applauds alongside Frontier employees after ringing the opening bell at the Nasdaq Thursday morning.
Frontier Airlines CEO Barry Biffle applauds alongside Frontier employees after ringing the opening bell at the Nasdaq Thursday morning. Photo Credit: Courtesy of Frontier Airlines

Frontier Airlines stock is now trading on the Nasdaq exchange. 

Frontier priced the stock, which is trading under the ticker symbol ULCC, at $19 Thursday morning, the low end of the $19 to $21 estimate it made last week

It closed its first day at $18.85.

Frontier put 30 million shares on the market, half of which were offered by the airline itself and the other half of which were offered by existing Frontier shareholders. The Denver-based airline's largest investor is Indigo Partners. 

The IPO will raise $266 million for Frontier after discounts and associated expenses are deducted, it said. The carrier won't receive proceeds from the sale of shares by the selling stockholders.

Frontier is the second U.S. airline to go public in the past month, joining Minneapolis-based Sun Country.

Like other airlines, Frontier has been hard-hit by the Covid-19 pandemic. The carrier reported a net loss in 2020 of $225 million compared with net income of $251 million in 2019. Its 2020 total operating revenues were $1.25 billion, approximately half of its 2019 total. 

However, Frontier says that its low-cost, leisure-focused business model leaves it well positioned to outperform the overall airline industry as travel recovers.

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