Border Airlines reported a 71% increase in airfares in the third quarter as the nation’s largest low-cost airline tried to pass on an even bigger rise in jet fuel prices.
Frontier’s fare revenue averaged $67.82 per passenger in the third quarter, compared to $39.74 last year. Including numerous fees imposed by the budget airline, particularly for checked and carry-on bags, total revenue per passenger increased 30% year-over-year to $138.22.
Customers continued to book despite the higher prices. Frontier’s passenger numbers increased 18% to more than 9.8 million people during the quarter. This represents a difference of 1.5 million passengers compared to last year.
The company said demand remained strong even at these higher prices, but Frontier still lost money. The airline widened its third-quarter loss to $104 million, from $77 million a year earlier. Its fuel bill rose 82% to $425 million.
Frontier forecasts potential adjusted earnings in the fourth quarter, saying it expects to post an adjusted loss of 15 cents per share on adjusted earnings of up to 5 cents per share.
Carriers of Delta Airlines to Frontier said most customers continue to book flights despite higher fares, but record jet fuel prices, their biggest cost after labor, are eroding profits.
Frontier shares were up about 6% in early trading Wednesday.
Frontier had eclipsed Spirit Airlines as the nation’s largest discount carrier even before that airline collapsed in May.
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