Frontier Airlines forecasts smaller-than-expected quarterly loss after surprise profit
ULCC•Frontier Airlines forecast an adjusted fourth-quarter loss of 15 cents to a profit of 5 cents per share, with the midpoint slightly better than analysts expected. It reported third-quarter adjusted earnings of 18 cents per share and record revenue of $1.36 billion.
1. Fourth-quarter outlook
Frontier expects adjusted earnings per share between a loss of 15 cents and a profit of 5 cents for the October-December quarter. The midpoint, a 5-cent loss, is slightly narrower than the 6-cent loss analysts had expected.
2. Third-quarter results
The airline reported adjusted third-quarter earnings of 18 cents per share, compared with a loss of 34 cents a year earlier; analysts had expected a 4-cent loss. Revenue reached an all-time high of $1.36 billion, above estimates of $1.29 billion, as unit revenue grew 30%. Elevated airfares helped soften the impact of high fuel prices.
3. Cost and revenue moves
Frontier has relied on fare increases, capacity cuts and additional fees, including checked-bag charges, to recover higher jet fuel costs. It has also returned some leased aircraft and introduced first-class seating and Starlink internet while working to improve loyalty income.
