Frontier Group Holdings Inc. (NASDAQ: ULCC) updated its first-quarter 2026 guidance, citing higher-than-expected revenue performance offset by increased jet fuel costs and operational disruptions from Winter Storm Iona.

The airline parent company expects an adjusted diluted loss per share of $0.32 to $0.44 for the first quarter, within its previously issued guidance range. The update comes ahead of a presentation at the J.P. Morgan Industrials Conference on March 17.

Revenue per available seat mile, adjusted to a 1,000-mile stage length, is projected to increase by mid-teens percentage points compared to the prior year quarter, up from previous expectations of greater than 10 percent growth. The company attributed this improvement to strong travel demand, moderating competitive capacity, and progress in revenue management initiatives.

Jet fuel prices increased significantly since the company's February guidance, now expected to average approximately $3.00 per gallon for the first quarter compared to the previously anticipated $2.50 per gallon. This increase is driving approximately $45 million to $50 million in additional fuel expenses for the quarter.

Winter Storm Iona on March 15-16 caused substantial operational disruptions, with lingering impacts expected as the company works to restore normal operations. First-quarter capacity is projected to decline 1 percent to 1.5 percent compared to the corresponding prior year period.

The company expects total liquidity at the end of March 2026 to exceed $900 million, an increase from $874 million reported at the end of December 2025. Frontier maintains expected tax expenses of $3 million to $5 million and approximately 229 million weighted average shares outstanding on a diluted basis.

The company stated it is reviewing its full-year 2026 guidance and will provide an update with its first-quarter results.