Frontier Posts Record Revenue but a Wider Third-Quarter Loss

Frontier Airlines reported record third-quarter revenue of about $1.4 billion, but its net loss widened to $104 million as higher fuel costs outweighed gains from higher fares. The loss compared with $77 million in the same quarter a year earlier, according to the company’s results. Average fare revenue per passenger rose 71% year over year, to $67.82 from $39.74. Total revenue per passenger, including fees such as charges for checked and carry-on bags, increased 30% to $138.22. Frontier carried about 9.8 million passengers, 18% more than a year earlier. The airline’s fuel expense climbed 82% to $425 million. Frontier also reported that the average fuel price was $3.96 per gallon, up 56% from a year earlier and 26 cents above the assumption used when it issued guidance. The company said the higher price added about $150 million in expense on the quarter’s fuel use. Despite the net loss, Frontier reported adjusted net income of $40 million, or 18 cents per share, excluding $143 million in pretax charges. Those charges included $134 million related to the early return of 13 A320neo leases. Chief Executive Jimmy Dempsey said the airline’s revenue performance produced an adjusted...