Frontier Group Holdings (NASDAQ: ULCC) largely met expectations for the year-end quarter, but the discount airline warned headwinds would eat into growth in 2023. Investors were focused on the future, sending Frontier shares down 16.1% as of 2 p.m. Thursday afternoon.

Last year was a good one for the airline industry, with pent-up demand for travel post-pandemic leading to strong demand and higher fares. The airlines were mostly able to fill every seat they flew.

Frontier earned $0.18 per share in the fourth quarter, just ahead of analyst expectations for $0.17 per share in earnings, on revenue of $906 million. The revenue figure was 38% above the same three months of 2019, prior to the pandemic, even though capacity was only up by 15%. The airline is also doing a good job building its nonticket revenue streams, with ancillary revenue 41% higher than in 2019.

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Source Fool.com