Frontier Airlines reported a 71% increase in airfare in the third quarter, according to CNBC. The country's largest budget airline said it raised fares to offset a larger jump in jet fuel prices.
Fare revenue averaged $67.82 per passenger in the quarter, up from $39.74 a year earlier. Including fees for checked and carry-on luggage, total revenue per passenger rose 30% to $138.22.
Passenger count rose 18% to more than 9.8 million, a gain of 1.5 million from last year. Frontier said demand remains strong at the higher prices.
Frontier still posted a net loss of $104 million, compared with a $77 million loss a year earlier. The loss reflects a $134 million charge tied to the return of some Airbus aircraft. Excluding that charge and other one-time items, Frontier reported an adjusted profit of $40 million.
Fuel costs rose 82% to $425 million. Frontier forecast an adjusted loss of 15 cents per share to adjusted earnings of as much as 5 cents per share for the fourth quarter.
CNBC reported that carriers including Delta Air Lines and Frontier say customers are mostly continuing to book flights despite higher fares, but that record jet fuel prices, their biggest cost after labor, are eroding profits. The report also said Frontier passed Spirit Airlines as the largest discount carrier in the country before Spirit collapsed in May.