Frontier Airlines reported a 71% increase in airfare in the third quarter as the country’s largest budget airline tried to pass along an even bigger jump in jet fuel prices.
Revenue and Passenger Growth
Frontier’s fare revenue averaged $67.82 per passenger in the third quarter, compared with $39.74 last year. Including the budget airline’s many fees, such as for checked and carry-on luggage, total revenue per passenger rose 30% on the year to $138.22.
Customers kept booking despite the higher prices. Frontier’s passenger count rose 18% to more than 9.8 million people in the quarter, which represents a difference of 1.5 million passengers from last year.
Financial Results and Fuel Costs
The company said demand remains strong, even at these higher prices, but Frontier still lost money as it took a $134 million charge tied to the return of some Airbus aircraft. Excluding that and other one-time charges, Frontier had an adjusted profit of $40 million.
Its posted a net loss of $104 million compared with a $77 million loss a year earlier, while its fuel bill soared 82% to $425 million.
