It is a tough environment for airlines, but Frontier Group (NASDAQ: ULCC) announced today that it produced a smaller-than-expected loss in the fourth quarter and said revenue should trend up for 2024. Investors are climbing on board, up 21% as of 1:30 p.m. ET on Tuesday.

Airline investors have had a lot to digest this earnings season. Demand held up surprisingly well in the last three months of 2023, but with inflation and a slowing economy front of mind plenty of questions remain about how long that will last. Meanwhile, competitors JetBlue Airways and Spirit Airlines are battling with regulators over a proposed merger that could take a significant amount of capacity out of the system at an opportune time.

Frontier appears to be navigating the environment as well as can be expected. The discount airline lost $0.17 per share in the fourth quarter, on revenue of $891 million, losing less than the $0.23 per share Wall Street had expected on revenue that was just shy of expectations.

Continue reading

Source Fool.com