After scrapping its initial IPO plans last summer, Frontier Airlines has finally gone public. The Denver-based budget airline now trades on the NASDAQ Exchange and looks to capitalize on the post-pandemic travel boom.
Interested in investing in a budget-airline that is sure to see a surge of demand in the coming year? Continue below to learn all of the steps you must go through to buy shares of Frontier Airlines’ parent company. You can also learn how to buy stocks (any type of stock) that might pique your interest.
When Did Frontier IPO?
Frontier Group Holdings set its IPO price on March 31st, 2021, and its executive team rang the NASDAQ’s opening bell on April 1st as the stock began trading. Taking the name of its parent company, the stock is trading as (NASDAQ: ULCC). For more information on some other hot IPOs, check out Benzinga's upcoming and recent IPOs calendar.
Frontier Airlines Financial History
Frontier Airlines has been around since 1994 but may have experienced one of its tougher years ever in 2020 due to the COVID-19 pandemic. Not only did total airline flights cut nearly in half, but Frontier Airlines (NASDAQ: ULCC) also had class-action lawsuits filed against the company because of its failure to issue COVID-19 refunds. Despite this, the company looks to tap the public markets and turn things around in 2021, selling 30 million shares of common stock for $19 per share.
Frontier Airlines Potential
The combination of mass vaccinations and recent stimulus checks likely means many Americans want to travel. While some people prefer to skip over the budget airlines, many travelers want to make up for lost time and take numerous trips in 2021. As a result, Frontier Group Holdings (NASDAQ:ULCC) may be able to take advantage of these trends and become a storied stock in 2021.
How to Buy Frontier Group Holdings (ULCC) Stock
- Pick a brokerage.
Before buying shares of Frontier Group Holdings (NASDAQ: ULCC.), you first need to open up your own brokerage account. You might want to focus on a number of things when picking a brokerage, but commissions likely won’t be a concern since most brokerages have switched to a commission-free model.
When trying to settle on 1 stockbroker to use, it can help to define your goals. Furthermore, if you are brand new to investing, choose a broker that offers paper trading so you can get some practice.
Last but not least, look out for any promotional offers from brokerages. Many brokerages incentivize you to join with free stocks or trading funds, so don't miss out on your chance for free stuff! - Decide how many shares you want.
Once you get your brokerage account set up, you next need to decide how many shares of Frontier Airlines’ parent company you want to buy. To help you arrive at a share amount, consider factors such as net worth and investing time horizon.
Remember, never invest money that you cannot afford to lose. Since Frontier Airlines is a recent IPO, it's riskier than the average stock. Plan accordingly! Setting stop-losses can help you manage risk. - Choose your order type.
Now that you know how many shares you want to buy, you need to decide how to buy these shares. You can tap into numerous order types and each offers different pros and cons.
If you decide on a market order, your broker will immediately execute your order at the National Best Bid and Offer (NBBO) price. On the other hand, if you use a limit order, your broker will execute it once shares can purchase at the preset price or better. - Execute your trade.
Once you settle on an order type, all of the hard work is now behind you. Simply press the buy button on your brokerage platform and take a deep breath while your broker executes your order. Once this occurs, your shares of Frontier Airlines (ULCC) will appear in your brokerage account.
Best Online Stockbrokers
Take a look at our list of best brokers to consider.
Will You Hold ULCC?
Frontier stock resides in a delicate market due to the COVID-19 pandemic. However, you only need to look to Airbnb to see how its shares more than doubled on its first IPO day.
We can learn a lot by watching Sun Country Airlines' IPO journey. In the Frontier Airlines IPO filing, the 5-year compound annual growth rate for domestic passenger journeys increased about 5.5% from 2015 to 2019. Frontier believes domestic passengers annually will jump by thousands in the near future.
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