Frontier Airlines raised average fare by 71% in the third quarter — CNBC

In the United States, low-cost carrier Frontier Airlines increased its average fare revenue per passenger by 71% in the third quarter, to $67.82 from $39.74 a year earlier. At the same time, the carrier’s loss widened to $104 million from $77 million in the same period last year.

Passengers continued to book flights

Including additional fees, particularly for checked and carry-on baggage, Frontier Airlines’ total revenue per passenger rose 30% year-on-year to $138.22. The number of passengers increased by 18% during the quarter and exceeded 9.8 million people, 1.5 million more than last year.

The company said demand remained strong even after the price increase. CNBC reports on the financial results and fare trends.

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Fuel costs increased

Frontier Airlines’ spending on jet fuel rose by 82% to $425 million. CNBC notes that record jet fuel prices, which are airlines’ largest expense after labor costs, are putting pressure on the industry’s profitability.

For the fourth quarter, Frontier Airlines forecasts a result ranging from an adjusted loss of 15 cents per share to an adjusted profit of 5 cents per share. After the forecast was released, the carrier’s shares rose by about 6% in early Wednesday trading.