Frontier Group Holdings Inc
NASDAQ:ULCC

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Frontier Group Holdings Inc
NASDAQ:ULCC
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Price: 7.14 USD 0.28% Market Closed
Market Cap: 1.6B USD
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Gross Margin
Frontier Group Holdings Inc

53%
Current
50%
Average
33.7%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
53%
=
Gross Profit
1.9B
/
Revenue
3.7B

Gross Margin Across Competitors

Country US
Market Cap 1.6B USD
Gross Margin
53%
Country US
Market Cap 40.4B USD
Gross Margin
50%
Country US
Market Cap 33.3B USD
Gross Margin
62%
Country CH
Market Cap 19.5B CHF
Gross Margin N/A
Country IE
Market Cap 15.4B EUR
Gross Margin
40%
Country IN
Market Cap 1.8T INR
Gross Margin
40%
Country US
Market Cap 20.6B USD
Gross Margin
70%
Country UK
Market Cap 14.8B GBP
Gross Margin
65%
Country CN
Market Cap 134.4B CNY
Gross Margin
4%
Country CN
Market Cap 120B CNY
Gross Margin
7%
Country SG
Market Cap 19B SGD
Gross Margin
48%
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Frontier Group Holdings Inc
Glance View

Market Cap
1.6B USD
Industry
Airlines

Frontier Group Holdings Inc., the parent company of Frontier Airlines, has carved out its niche in the competitive airline industry by embracing an ultra-low-cost carrier model. Born out of the bustling skies of Denver, Colorado, Frontier operates with a no-frills, value-driven approach, appealing to passengers willing to trade some luxury for cheaper fares. The airline’s strategy hinges on offering a la carte services, where customers pay a low base fare but can customize their traveling experience by purchasing additional services like seat selection, checked baggage, and in-flight refreshments. This unbundling of services allows Frontier to maintain low ticket prices, attracting a broad audience while simultaneously generating ancillary revenue streams. At the heart of Frontier's operations lies an efficient and lean business model. The company leverages a modern fleet of fuel-efficient aircraft, predominantly composed of Airbus A320 family jets, which helps keep maintenance costs low and fuel efficiency high. Frontier's flights often utilize secondary airports near major metropolitan areas. This strategy reduces airport fees and congestion, leading to a quicker turnaround and higher aircraft utilization. By maximizing plane occupancy rates and limiting operational costs, Frontier aims to keep its margins stable while expanding its route map across the United States, Mexico, and the Caribbean. This careful balance between cost management and service flexibility forms the core of how Frontier Group Holdings Inc. turns a profit in an industry dominated by larger legacy carriers.

ULCC Intrinsic Value
10.93 USD
Undervaluation 35%
Intrinsic Value
Price

See Also

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What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
53%
=
Gross Profit
1.9B
/
Revenue
3.7B
What is the Gross Margin of Frontier Group Holdings Inc?

Based on Frontier Group Holdings Inc's most recent financial statements, the company has Gross Margin of 53%.