Frontier Group Entered Into An Agreement With AerCap To Terminate Leases Associated With 24 A320neo Aircraft Currently In Operation; Expects $400M Reduction In Lease Assets And Liabilities; Expects $75M-$95M Cash Charges For Early Lease Termination; Expects $125M-$175M Non-Cash Charges In Q1-Q2 2026; AerCap Agrees To 10 Future Sale-Leasebacks With Frontier For 2028-2029 Deliveries; Defers Delivery Of 69 A320neo Aircraft To 2031-2033

Frontier Group Holdings, Inc. has entered into an agreement with AerCap to terminate leases for 24 A320neo aircraft, resulting in a $400 million reduction in lease assets and liabilities. The company expects to incur cash charges of $75 million to $95 million for early lease termination and non-cash charges of $125 million to $175 million in Q1-Q2 2026. Additionally, AerCap will conduct 10 future sale-leaseback transactions with Frontier for aircraft deliveries scheduled in 2028-2029, while the delivery of 69 A320neo aircraft has been deferred to 2031-2033.