Frontier Group downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Jamie Baker downgraded Frontier Group to Underweight from Neutral without a price target. The firm is “growing increasingly uncomfortable” with Frontier’s dependence on sale leasebacks, noting the proceeds from which, in some instances, account for the entirety of the airline’s profit. The analyst fears that the continued reliance on sale leasebacks is leading to capacity temptations in excess of what demand can potentially handle. While this may ultimately leave Frontier in a competitively-advantageous position in the long run, it represents too significant of a current risk for current shareholders, the analyst tells investors in a research note.