Photo: Ron Vandulek/Wikimedia Commons / CC BY-SA 3.0 (cropped)
Frontier’s average fare revenue per passenger climbed to $67.82 in the third quarter, up 71% from a year earlier, while its broader per-passenger total rose 30% to $138.22.
The figures in the airline’s October 28 earnings release offer a view of what the low-cost carrier collected during the three months ended September 30. They are quarterly averages, not today’s advertised ticket prices or evidence that fares increased 71% on every route.
Average fare revenue was $39.74 per passenger in the same quarter last year. Frontier’s nonfare passenger revenue averaged $67.47, up 7% from $62.78. The release does not turn that figure into a list of current baggage, seat or other individual fees.
Other revenue contributed $2.93 per passenger, down from $3.92. Together, the airline’s total ancillary revenue averaged $70.40, up 6% from $66.70. Adding fare and ancillary revenue produces the $138.22 total, compared with $106.44 a year earlier. Because it includes other revenue, that measure is not an exact all-in ticket price paid by each traveler.
Fuel costs also climbed
Frontier carried 9.805 million passengers during the quarter, up 18% from 8.325 million a year earlier. Its total revenue reached approximately $1.355 billion, up 53%.
Fuel cost averaged $3.96 a gallon, compared with $2.54 a year earlier, an increase of 56%. Total fuel expense rose 82% to $425 million from $234 million. The total expense increase and the per-gallon increase measure different things and should not be read as interchangeable.
Despite the stronger revenue, Frontier reported a GAAP net loss of $104 million, compared with a $77 million loss a year earlier. On its adjusted, non-GAAP basis, which excludes certain items, it reported net income of $40 million. The adjusted profit does not erase the reported accounting loss.
What the figures mean for travelers
The results show higher average revenue collected per passenger at Frontier, with both fares and nonfare passenger revenue contributing. They do not establish what any particular itinerary will cost. Travelers comparing a low advertised fare with another airline’s offer still need to check the specific services and options included in their own booking.
For the fourth quarter, Frontier forecast adjusted earnings ranging from a loss of 15 cents to a profit of 5 cents per share. That is company guidance, not a completed result.
JBizNews Desk | Business
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