By Will Feuer
Airline stocks, particularly those of low-cost carriers, saw a surge in trading activity following the release of Frontier Group’s fourth-quarter results. The company stated that revenue trends are on the rise this year.
Frontier Group’s stock soared by more than 20%, leading the overall increase in the airline sector. Other low-cost carriers also experienced notable gains, with Spirit Airlines and JetBlue Airways rising by 15% and 5% respectively.
Additionally, major carriers such as American Airlines, Delta Air Lines, and United Airlines witnessed an upward trend as well. American Airlines saw a 4% climb in shares, while Delta Air Lines and United Airlines both experienced a 2% increase.
Frontier’s impressive fourth-quarter sales surpassed the expectations of Wall Street analysts. Additionally, the company’s quarterly loss was narrower than anticipated.
During a conference call with analysts, Frontier President Jimmy Dempsey expressed that revenue trends are exceeding initial projections for the start of the year. He further mentioned that the company expects these positive trends to continue improving throughout the year.