Financial Analysis

Commitments and Contingencies Flight Equipment Commitments As of June 30, 2026, the Companys firm aircraft and engine purchase orders consisted of the following: A320neo A321neo Total Aircraft (a) Engines Year Ending Remainder of 2026 1 8 9 1 2027 8 8 3 2028 9 11 20 2 2029 15 15 5 2030 22 22 7 Thereafter 3 78 81 2 Total 13 142 155 20 __________________ (a) While the schedule presented above reflects the contractual delivery dates as of June 30, 2026, the Company continues to experience delays in the deliveries of Airbus aircraft which may persist in future periods. The Company is party to certain aircraft and engine purchase agreements that provide for, among other things, varying purchase incentives. These purchase incentives are allocated proportionally by aircraft or engine type over the remaining aircraft or engines to be delivered so that each aircrafts or engines capitalized cost upon induction would be equal. Therefore, as cash paid for deliveries is greater than the capitalized cost due to the allocation of these purchase incentives, a deferred purchase incentive is recognized, which will ultimately be offset by future deliveries of aircraft or engines with lower cash payments than their associated capitalized cost. As of June 30, 2026 and December 31, 2025, the Company had $61 million and $81 million, respectively, of deferred purchase incentives recognized within other assets on the Companys condensed consolidated balance sheets. As of June 30, 2026 and December 31, …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt The Companys debt obligations are as follows (in millions): June 30, 2026 December 31, 2025 Secured debt: Pre-delivery Credit Facilities (a) $ 226 $ 348 Revolving Loan Facility (b) 2025-1 EETCs (c) 100 105 Unsecured debt: Affinity card advance purchase of miles (d) 119 101 PSP Promissory Notes (e) 66 66 Total debt 511 620 Less: current maturities of long-term debt, net (206) (301) Less: total debt acquisition costs and other discounts, net (5) (6) Long-term debt, net $ 300 $ 313 __________________ (a) The Company has multiple pre-delivery credit facilities which consist of the PDP Financing Facility, the Second PDP Financing Facility and the Third PDP Financing Facility, all as defined below (together, the Pre-delivery Credit Facilities). The Pre-delivery Credit Facilities are for the financing of pre-delivery deposit payments (PDPs) for the Companys A320neo family aircraft purchase agreement. Each facility is collateralized by the Companys purchase agreement for the associated A320neo family aircraft deliveries through the term of the respective facilities. Total commitments (drawn or undrawn) under the Pre-delivery Credit Facilities are $299 million. See Note 8 for the Companys commitment schedule regarding its A320neo family orderbook. The Company, through an affiliate, entered into a PDP facility in December 2014 (as amended from time to time, the PDP Financing Facility) for the financing of certain aircraft PDPs. The facility consists of separate loans for each PDP …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated operating revenues are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Passenger revenues: Fare $ 613 $ 348 $ 1,062 $ 698 Non-fare passenger revenues: Service fees 266 252 436 486 Baggage 234 186 449 391 Seat selection 88 81 171 150 Other 34 31 69 57 Total non-fare passenger revenue 622 550 1,125 1,084 Total passenger revenues 1,235 898 2,187 1,782 Other revenues 44 31 84 59 Total operating revenues $ 1,279 $ 929 $ 2,271 $ 1,841

DisaggregationOfRevenueTableTextBlock

Stock-Based Compensation During the three and six months ended June 30, 2026 and 2025, the Company recognized $4 million, $9 million, $6 million, and $11 million, respectively, in stock-based compensation expense, which is included as a component of salaries, wages and benefits within the Companys condensed consolidated statements of operations. Stock Options There were no stock options granted during the six months ended June 30, 2026. During the six months ended June 30, 2026, no vested stock options were exercised. As of June 30, 2026, the weighted-average exercise price of outstanding stock options was $9.49 per share. Restricted Stock Units During the six months ended June 30, 2026, 2,881,427 restricted stock units were issued with a weighted-average grant date fair value of $5.40 per share. During the six months ended June 30, 2026, 1,605,089 restricted stock units vested, of which 447,779 restricted stock units were withheld to cover employees tax withholding obligations, with a weighted-average grant date fair value of $7.15 and $8.45 per share, respectively. Performance Stock Units During the six months ended June 30, 2026, 1,063,239 performance stock units (PSUs) were issued, of which 550,886 PSUs were issued with a non-market-based performance condition and a weighted-average grant date fair value of $5.65 per share, and the remaining 512,353 PSUs were issued with a market-based condition and a weighted-average grant date fair value of $9.49 per share. During the s …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Under ASC 820, Fair Value Measurements and Disclosures , disclosures relating to how fair value is determined for assets and liabilities are required, and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs, as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques in order to assess the fair value of its financial assets and liabilities. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash are comprised of liquid money market funds, time deposits, and cash, and are categorized as Level 1 instruments. The Company maintains cash with various high-quality …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes When a reliable estimate cannot be made, the Company computes the interim income tax provision based on the actual effective tax rate for the year-to-date period by applying the discrete method. T he Company has calculated its effective tax rate using the discrete method for the three and six months ended June 30, 2026 and 2025. The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting basis of assets and liabilities. Quarterly, the Company assesses whether it is more likely than not that sufficient taxable income will be generated to realize deferred income tax assets, and a valuation allowance is recorded when it is more likely than not that some portion, or all, of the Companys deferred tax assets, will not be realized. The Company considers sources of taxable income from prior period carryback periods, future reversals of existing taxable temporary differences, tax planning strategies and future projected taxable income when assessing the future realization of deferred tax assets, as applicable. The Companys effective tax rate for the three and six months ended June 30, 2026 was a benefit of 4.3% and 3.5%, respectively, on pre-tax losses, compared to an expense of 0% and 2.7%, respectively, on pre-tax losses for the three and six months ended June 30, 2025. The effective tax rate for the three and six month …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Operating Leases Early Return Agreement In March 2026, the Company entered into an agreement (the Early Return Agreement) to early terminate the leases associated with 24 A320neo aircraft, which represented a lease modification. The costs associated with the Early Return Agreement include non-recurring non-cash charges during the six months ended June 30, 2026 comprised of: $73 million related to the write-off of non-recoverable capitalized prepaid maintenance balances recorded in maintenance, materials and repairs within the Companys condensed consolidated statement of operations, $63 million of accelerated depreciation expense related to the remeasurement of useful lives of capitalized maintenance recorded in depreciation and amortization within the Companys condensed consolidated statement of operations and $(6) million of benefit related to the reversal of previously accrued fixed lease return costs. Additionally, during the six months ended June 30, 2026, the Company recorded $79 million of charges in connection with the return condition of aircraft and engines in aircraft rent within the Companys condensed consolidated statement of operations which will largely be settled in fiscal years 2028 and 2029. During the three months ended June 30, 2026, the Company recorded $44 million of charges in connection with the return condition of aircraft and engines in aircraft rent and $26 million of accelerated depreciation expense related to the remeasurement of useful lives of ca …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Revenue Recognition As of June 30, 2026 and December 31, 2025, the Companys air traffic liability balance was $512 million and $361 million, respectively, which includes amounts classified as other long-term liabilities on the Companys condensed consolidated balance sheets. During the six months ended June 30, 2026, 88% of the air traffic liability as of December 31, 2025 was recognized as passenger revenue within the Companys condensed consolidated statements of operations. Of the air traffic liability balances as of June 30, 2026 and December 31, 2025, $83 million and $75 million, respectively, was related to unearned membership fees. During the three months ended June 30, 2026, the Company received $175 million of prepaid loyalty program consideration. The upfront payment is included within frequent flyer liabilities, other current and long-term liabilities on the Companys condensed consolidated balance sheets and will be recognized over the duration of the program in passenger and other revenues based on the nature of the separate performance obligations. Operating revenues are comprised of passenger revenues, which includes fare and non-fare passenger revenues, and other revenues. Disaggregated operating revenues are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Passenger revenues: Fare $ 613 $ 348 $ 1,062 $ 698 Non-fare passenger revenues: Service fees 266 252 436 486 Baggage 234 186 449 391 Seat selection 88 81 171 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles in the United States (GAAP) and include the accounts of Frontier Group Holdings, Inc. (FGHI or the Company) and its wholly-owned direct and indirect subsidiaries, including Frontier Airlines Holdings, Inc. (FAH) and Frontier Airlines, Inc. (Frontier). All wholly-owned subsidiaries are consolidated, with all intercompany transactions and balances being eliminated. The Company is an ultra low-cost, low-fare airline headquartered in Denver, Colorado that offers flights throughout the United States and to select international destinations in the Americas, serving approximately 90 airports. The Company is managed as a single business unit that provides air transportation for passengers and management has concluded there is only one reportable segment. The Company has identified net income (loss) as the primary measurement of the segments profit or loss. Please see the Companys Condensed Consolidated Statements of Operations for net income (loss), as well as other significant revenue and expense components of profit or loss, for the three and six months ended June 30, 2026 and 2025. The Company has identified total assets as the primary measurement of the segments assets. Please see the Companys Condensed Consolidated Balance Sheets for total assets as of June 30, 2026 and December 31, 202 …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing