*

Frontier withdraws full-year forecast amid weak travel

demand

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Airline fares see steepest monthly decline since September

2021

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Frontier cuts Q2 capacity to protect margins

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Frontier shares drop 12.5%, other airlines also see

declines

By Rajesh Kumar Singh and Anshuman Tripathy

April 10 (Reuters) - Frontier Group ( ULCC ), the parent

of Frontier Airlines, withdrew its full-year forecast on

Thursday and warned of a loss in the first quarter, as U.S.

President Donald Trump's trade war has hit travel demand.

The Denver-based company is the second major U.S. carrier to

ditch its forecast after Delta Air Lines ( DAL ) pulled its

full-year guidance on Wednesday.

Frontier said travel demand has weakened, resulting in fare

discounting and promotions across the industry. Citing the

uncertain environment, the airline said it was unable to

reaffirm the full-year 2025 outlook.

In February, the company had forecast an adjusted profit of

at least $1.00 this year, and breakeven earnings of 7 cents a

share in the March quarter.

Trump's trade war has rattled global markets, hitting

business and consumer confidence. As travel is a discretionary

item for many consumers and businesses, mounting economic

worries have clouded the airline industry's outlook and sparked

a selloff in shares.

Weakening consumer demand has also undermined the industry's

pricing power. Airline fares fell 5.3% in March from a month

ago, posting their steepest monthly decline since September

2021, according to data from the U.S. Labor Department.

Frontier's shares fell about 12.5% on Thursday and have

shaved off half their value so far this year.

Shares of Southwest ( LUV ), Alaska, Delta, United

and American Airlines ( AAL ) fell between 10% and 14%

on Thursday.

The S&P 1500 Airlines index is down about 37% so far this

year, compared with the wider S&P 500's 10.43% drop.

Battered global markets and anxious global leaders welcomed

Wednesday's reprieve when Trump suddenly decided to freeze most

of his hefty new duties for 90 days. But the selloff resumed on

Thursday amid fears of a worsening trade war with China.

Frontier said it expects a modest 5% revenue growth in the

first quarter, adding it would continue to monitor demand and

adjust capacity as needed.

It has cut capacity, or the seats available on flights, for

the June quarter to avoid lowering fares and protect margins. It

now expects a low single-digit year-on-year decline in capacity

in the second quarter.

Frontier expects an adjusted quarterly loss in the range of

20 to 24 cents per share, compared with analysts' average

estimate of a loss of $0.03 per share, according to data

compiled by LSEG.

The company will report its quarterly earnings on May 1.