Frontier Airlines reports 71% jump in airfare amid rising fuel costs
Frontier Airlines just raised average airfares by 71% in the third quarter.
The short version
- Fare revenue climbed to $67.82 per passenger as jet fuel prices soared.
- Total revenue per passenger rose 30% to $138.22 including extra fees.
- Passenger counts still grew 18% to over 9.8 million travelers.
Frontier Airlines, the country's largest discount carrier, just reported a 71% increase in airfare for the third quarter as it tried to pass along soaring fuel costs. Frontier's fare revenue averaged $67.82 per passenger, compared with $39.74 last year, according to CNBC.
Including the budget airline's many fees 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, and Frontier's passenger count rose 18% to more than 9.8 million people in the quarter, a difference of 1.5 million passengers from last year.
The company said demand remains strong, but Frontier still lost money, widening its third-quarter loss to $104 million from a $77 million loss a year earlier. Its fuel bill soared 82% to $425 million, driving the losses. Carriers from Delta Air Lines, the world's largest airline by revenue, to Frontier have said customers are mostly continuing to book flights despite higher fares.
Record jet fuel prices, their biggest cost after labor, are eroding airline profits across the industry. Frontier had eclipsed Spirit Airlines as the biggest discount carrier in the country even before that airline collapsed in May. For anyone booking holiday travel this winter, those higher ticket prices are here to stay as airlines try to cover their fuel bills. Pack light if you want to avoid those extra luggage fees.
