Frontier Group Holdings agreed to lease 10 A321neo aircraft from AerCap Holdings N.V., expected to be delivered in the fourth and first quarters.

The company also agreed to an early termination of leases for 13 of its A320neo aircraft that were set to expire in the next six to seven years. Together, the two deals are expected to maintain similar capacity with less aircraft, the company said.

Frontier said the aircraft covered under the early return agreement are set to be returned later this year and will reduce both the company's operating lease right-of-use assets and operating lease liabilities by around $260 million.

The early return agreement will also eliminate maintenance-related costs that would have exceeded the costs of terminating the leases early, the company said Monday.

The agreement is expected to result in non-cash charges of between $60 million and $80 million, expected to be recognized later this year. The agreement will also incur cash charges between $90 million and $120 million related to the early termination and return of aircraft and engines to Carlyle. Those charges are expected to largely be recognized in the third and fourth quarters and mostly settled in 2028 and 2029.