Frontier Airlines' fare revenue per passenger rose 71% in the third quarter, CNBC reported, as higher jet-fuel costs weighed on the U.S. discount carrier's earnings.
Fare revenue averaged $67.82 per passenger, compared with $39.74 a year earlier. Total revenue per passenger, including fees such as charges for checked and carry-on bags, reached $138.22, up 30%, CNBC said. The figures track different amounts: the $138.22 total includes fees, while the fare measure counts fare revenue per passenger.
More than 9.8 million passengers traveled with Frontier, 18% above the prior year and about 1.5 million more than the year-earlier total, according to CNBC. The outlet reported that Frontier said demand remained strong despite higher prices.
That demand did not prevent a larger quarterly loss. Frontier's third-quarter loss widened to $104 million from $77 million a year earlier, while fuel spending climbed 82% to $425 million, CNBC reported.
Fuel has become a central pressure on airline earnings, CNBC said, ranking behind labor as the industry's largest expense. Record jet-fuel prices were eroding profits even as carriers including Delta Air Lines and Frontier described booking demand as resilient. Frontier was raising fares to help cover the higher fuel bill, according to the report.
CNBC said Frontier had taken the top U.S. discount-carrier position before Spirit Airlines collapsed in May. By Wednesday afternoon, Frontier shares had gained more than 9% following the earnings outlook, the outlet reported.
EconoTimes previously covered JetBlue's $257 million third-quarter loss as operating costs rose.
For the fourth quarter, Frontier's guidance allows for adjusted losses of up to 15 cents per share or adjusted earnings of up to 5 cents per share, CNBC reported.
