Frontier Airlines Secures Aircraft Pre-Delivery Payment Financing to 2028

Frontier Airlines Holdings has secured a USD205 million revolving line of credit to support, among other needs, aircraft pre-delivery payments (PDPs). According to a September 26, 2024, filing with the Securities Exchange Commission, the line of credit is backed by Frontier’s loyalty program and brand-related assets and could be increased to USD500 million, subject to additional lending commitments, reported ch-aviation.com.

On October 3, 2024, Jackson Square Aviation confirmed a USD150 million pre-delivery payment financing facility with Frontier, further bolstering the airline’s aircraft acquisition plans. In addition, Frontier has renegotiated and expanded its existing PDP facilities, bringing its financing capacity to approximately USD475 million, covering aircraft deliveries through 2027 and some into 2028. Previously, the facility covered PDPs for aircraft scheduled through 2026.

This financing agreement will support the delivery of new Airbus aircraft, enabling Frontier Airlines to continue its fleet expansion. The revolving loan facility is designated as Frontier’s senior secured obligation, ensuring priority in repayment.

Jackson Square Aviation’s president and CCO, Chris Dailey, expressed enthusiasm about the evolving partnership, noting the long-standing relationship between the two companies through aircraft sale-leaseback financing.

According to ch-aviation.com data, Frontier operates a fleet of 153 aircraft, including eight A320-200s, eighty-two A320neo, twenty-one A321-200s, and forty-two A321neo. The airline has orders for 49 additional A320neo and 145 A321neo, securing its future fleet growth through 2028.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com