Please ensure Javascript is enabled for purposes of website accessibility

Discounter Frontier Airlines Plans IPO Ahead of Expected Travel Rebound

By Lou Whiteman - Mar 9, 2021 at 9:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company should be well positioned to recover from the pandemic earlier than most.

Discount carrier Frontier Airlines is charting a course to return to public markets, filing for an initial public offering (IPO) with plans to trade on the Nasdaq under the ticker FRNT.

Frontier was a publicly traded company before, but was acquired out of bankruptcy by Republic Airways Holdings in 2008. It was eventually sold to private equity firm Indigo Partners, which has rebuilt the airline as a ultra-low-cost discounter similar to Spirit Airlines (SAVE 3.22%).

A Frontier plane on the runway.

Image source: Frontier.

The company is going public after a turbulent year for the airlines. Frontier lost $225 million on sales of $1.25 billion in 2020, with results weighed down by a pandemic-induced decline in air travel.

But airline stocks have recovered much of what they lost in 2020 in the early days of 2021, and investors are growing confident that as vaccines are rolled out, we will see substantial demand for leisure travel by summer.

Airlines like Spirit and Frontier are likely to be among the first to recover because of their low costs and their focus on vacationers.

Frontier had originally filed to go public in 2017 but delayed the offering in part due to the impact of price wars with United Airlines Holdings (UAL 5.08%). The airline officially pulled that offering last summer.

Frontier is one of two airlines currently planning an IPO, with Sun Country Airlines Holdings also seeking to go public in the months to come.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Spirit Airlines, Inc. Stock Quote
Spirit Airlines, Inc.
$20.50 (3.22%) $0.64
United Airlines Holdings, Inc. Stock Quote
United Airlines Holdings, Inc.
$48.41 (5.08%) $2.34

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.