Shares of Frontier Group Holdings (ULCC) plummeted 5.17% during intraday trading on Tuesday, following news of a federal safety investigation into the company's operations.

The National Transportation Safety Board (NTSB) has joined the investigation into the emergency evacuation of a Frontier Airlines flight at Denver International Airport. The probe follows an incident where the aircraft struck a person on the runway, resulting in a fatality. The NTSB is specifically evaluating reports that some passengers carried their carry-on luggage during the evacuation process, which could be a safety violation.

Such incidents typically trigger regulatory scrutiny, potential operational disruptions, and can lead to significant reputational damage for airlines, often resulting in negative investor sentiment and stock price pressure.