Jimmy Dempsey is Frontier Airlines' new CEO. Dempsey, 50, had been interim CEO of the discount carrier since Barry Biffle was removed from leadership on Dec. 16.
Jimmy Dempsey
"Jimmy has demonstrated over his more than a decade at Frontier that he's the right leader to drive our airline forward," said Bill Franke, chair of the Frontier board and managing partner of controlling Frontier shareholder Indigo Partners. "His expertise will help us capitalize on the opportunities we see ahead, preserve our industry-leading cost advantage and guide Frontier into the future."
Dempsey joined Frontier as CFO in 2014. He became Frontier's president in October 2023.
Dempsey will receive an annual salary of $747,000, with the potential for cash incentives of up to 125% of his salary, plus stock incentives.
He takes over an airline that has struggled to achieve profitability since the pandemic as consumer preferences have tilted toward full-service carriers. For the first three quarters of this year, Frontier reported a net loss of $190 million, including a $77 million loss in the third quarter.
The fourth quarter was likely better. Frontier said Thursday that it expects earnings, adjusted for special one-time items, to come in at the high end of previous guidance of 4 to 20 cents per share.
"This reflects strong revenue performance as the quarter progressed, overcoming the impact of the government shutdown," the company said.