Frontier Airlines Abandons Forecast due to Impact of Trump’s Trade War on Travel
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Frontier Group, the company that owns Frontier Airlines, has decided to retract its full-year forecast due to a projected loss in the first quarter, attributing this to the impact of President Donald Trump's trade war on travel demand. This move follows a similar decision made by Delta Air Lines. The Denver-based airline highlighted a decline in travel demand, leading to price reductions and promotional activities within the industry. Given the uncertain economic climate, Frontier was unable to confirm its full-year 2025 outlook. Earlier forecasts had indicated an adjusted profit of at least $1.00 for the year and breakeven earnings of 7 cents per share in the first quarter. The airline industry has been hit by weakening consumer demand and falling prices, with airline fares dropping by 5.3% in March. Frontier saw a 12.5% drop in its shares on Thursday, contributing to a 50% decline in its value over the year. Other major airlines, including Southwest, Alaska, Delta, United, and American Airlines, also experienced share price decreases. Global market uncertainty and concerns over the escalating trade war have further impacted the industry. Despite anticipating a 5% revenue growth in the first quarter, Frontier plans to adjust its capacity and expects a slight decrease in the second quarter to maintain margins. Quarterly earnings will be reported on May 1.

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