Struggling discount carrier Frontier Airlines reported a first-quarter operating loss of $283 million on Tuesday.
The airline's record operating revenue of $992 million was countered by operating expenses of $1.28 billion, amounting to a loss margin of 28.3%.
High fuel prices drove up Frontier's costs. The airline also took a one-time $139 million accounting charge related to its early termination of leases of 24 A320neo aircraft in February, a move geared toward slowing growth and turning around its financial fortunes.
Excluding one-time charges, the airline's net loss for the March quarter was $68 million.
Frontier ended the quarter with $974 million in liquidity, up $100 million from the end of 2025. It expects liquidity of $900 million to $950 million at the end of this quarter in June.
"Our ability to deliver strong top-line results and increase our liquidity despite a rapidly rising fuel cost environment validates our strategy and the resilience of our operating model," CEO Jim Dempsey said in a prepared remark. "We remain focused on our four key strategic priorities centered around rightsizing the fleet, strengthening our cost discipline, improving operational reliability and driving customer loyalty, with significant progress achieved on these priorities during the quarter."