Frontier Airlines raises fares 71% as fuel costs soar
Summarised from 2 outlets · Updated 29 Oct, 15:06 · Archive
Frontier Airlines raised average airfare 71% in the third quarter despite soaring fuel costs pushing the airline to a net loss.
Frontier Airlines reported a 71% increase in average airfare for the third quarter, raising it to $67.82 per passenger from $39.74 a year earlier. When including fees for checked and carry-on luggage, total revenue per passenger climbed 30% to $138.22. Despite the higher prices, passenger numbers grew 18%, reaching 9.8 million, a gain of 1.5 million from the previous year.
The airline's fuel bill soared 82% to $425 million, eroding profitability. Frontier posted a net loss of $104 million, though it reported an adjusted profit of $40 million excluding one-time charges such as a $134 million charge tied to the return of Airbus aircraft. The company forecast potential adjusted profit in the fourth quarter, with guidance ranging from an adjusted loss of 15 cents per share to earnings of as much as 5 cents per share.
Frontier captured market share from Spirit Airlines, which collapsed in May. Consumer-spending data showed Frontier offered discounts of up to 50% on base fares to attract Spirit passengers and expanded routes in markets Spirit previously served. The airline said demand remains strong at current price levels, demonstrating that higher fares have not deterred customers from booking flights.
How it is being reported
- US’ largest budget airline sees a staggering 71% spike in ticket pricesAirfare is soaring these days.New York Post · 29 Oct, 14:46
- America's largest budget airline reports 71% jump in airfareFrontier Airlines reported a 71% jump in airfare for the third quarter and said customers continue to bookCNBC · 28 Oct, 13:50
In this story: Frontier Airlines · Spirit Airlines · Delta Air Lines · Airbus · United States
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