Frontier Airlines Adjusts Growth Strategy, Delays A320neo Aircraft Deliveries, and Cancels XLR Orders
Frontier Airlines has modified its fleet expansion plans, reaching an agreement with Airbus to postpone the delivery of 54 aircraft originally scheduled for 2025-2028 to the period between 2029-2031. This adjustment reduces the airline’s fleet growth rate to about 10% annually, down from a previously projected rate of nearly 20%.
In a strategic pivot, the Denver-based ultra-low-cost carrier (ULCC) also decided against purchasing any A321-200NY(XLR)s. Instead, Frontier will convert eighteen A320neo orders to the non-XLR A321neo variant. This decision follows an initial announcement in June 2019 when Frontier expressed intentions to convert eighteen A320neo family jets to A321neo(XLR)s, with the first delivery expected in 2024.
Frontier’s updated aircraft delivery schedule is now set as follows:
- 2024: Nine A321-200NX and one engine
- 2025: Eight A320-200N, thirteen A321neo, and four engines
- 2026: Seven A320neo, fifteen A321neo, and four engines
- 2027: Eight A320neo, twenty-six A321neo, and three engines
- 2028: Four A320neo, thirty A321neo, and two engines
- Post-2028: A total of seventy-six A321neo
During the airline’s recent quarterly investor call, Mark Mitchell, Frontier’s Chief Financial Officer, highlighted that these deferrals are part of a broader strategy to moderate growth, minimize financial obligations, and reduce pre-delivery payments in the upcoming years.
Despite these changes, Frontier Airlines reported a net profit of USD 31 million for the second quarter, surpassing expectations though showing a decline from the previous year, with revenues amounting to USD 973 million. This shift in Frontier’s operational strategy marks a significant recalibration of its future plans, aligning its fleet expansion with broader financial and market conditions.
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com