Frontier Group Holdings, Inc. (ULCC): A Bear Case Theory

We came across a bearish thesis on Frontier Group Holdings, Inc. on Valueinvestorslcub.com by GreatAuksRevenge. In this article, we will summarize the bears’ thesis on ULCC. Frontier Group Holdings, Inc.'s share was trading at $4.9500 as of January 28th. ULCC’s forward P/E was 18.59 according to Yahoo Finance.

Frontier Airlines is widely viewed as a US ultra-low-cost carrier, but since the pandemic, its true economic engine has been the monetization of its aircraft order book rather than sustainable airline operations. While this strategy has temporarily provided liquidity...