Frontier Airlines increased average airfare by 71% in the third quarter as the US budget carrier sought to offset a sharp rise in jet fuel costs, while passenger numbers continued to grow despite higher prices.
Fare revenue averaged $67.82 per passenger, up from $39.74 a year earlier. Once charges for services including checked and carry-on luggage were included, revenue per passenger rose 30% to $138.22.
More than 9.8 million people flew with Frontier during the quarter, an increase of 18% year on year, or about 1.5 million additional passengers. The airline said demand remained strong at the higher fares.
However, Frontier reported a net loss of $104 million, compared with a loss of $77 million in the same period last year. Its fuel bill surged 82% to $425 million.
The company also took a $134 million charge connected with the return of some Airbus aircraft. Excluding that and other one-off charges, Frontier recorded an adjusted profit of $40 million.
Frontier forecast an adjusted loss of 15 cents per share to adjusted earnings of up to 5 cents per share for the fourth quarter.
Airlines including Delta Air Lines and Frontier have said customers are generally continuing to book flights despite higher fares, although rising jet fuel costs are putting pressure on profits.
Frontier shares rose by nearly 12%. The airline had become the largest discount carrier in the US before Spirit Airlines collapsed in May.
