Frontier Airlines, a subsidiary of Frontier Group Holdings, Inc. (NASDAQ: ULCC), has agreed to terminate leases on 13 Airbus A320neo aircraft ahead of schedule, with the planes set to be returned during the second half of 2026.

The leases were originally scheduled to expire within six to seven years. The early termination is expected to reduce the company's operating lease right-of-use assets and operating lease liabilities by approximately $260 million each.

According to a company statement, the agreement is expected to generate non-cash charges of between $60 million and $80 million, to be recognized in the third and fourth quarters of 2026. These charges will consist primarily of write-offs of non-recoverable capitalized prepaid maintenance balances and accelerated depreciation on capitalized maintenance assets.

Cash charges related to the early lease termination and aircraft and engine returns to Carlyle are expected to range from $90 million to $120 million, also recognized largely in the third and fourth quarters of 2026, with the majority to be settled in 2028 and 2029.

In a separate transaction announced on August 29, 2026, Frontier entered into an agreement with AerCap Holdings N.V. to directly lease 10 Airbus A321neo aircraft, with deliveries expected between the fourth quarter of 2026 and the first quarter of 2027.