Key facts
- Frontier reported a third-quarter adjusted profit of 18 cents per share.
- Analysts had forecast a loss of 4 cents per share.
- Quarterly revenue rose 53% to $1.36 billion.
- Fare revenue per passenger increased 71% year-over-year to $67.82.
- Fourth-quarter revenue per seat is expected to grow over 20%.
Frontier Airlines reported a surprise third-quarter profit of 18 cents per share, contrasting with analyst expectations of a loss and a year-ago loss of 34 cents. The ultra-low-cost carrier's revenue climbed 53% to a record $1.36 billion, driven by higher fares and a strategic focus on passenger volume. CEO Jimmy Dempsey highlighted a "healthy balance" between ticket prices and passenger demand, differentiating Frontier from larger rivals prioritizing yield over volume. The airline also benefited from Spirit Airlines' exit from the market. Despite lease termination costs and a technicians' union contract, Frontier's shares rose 9% in afternoon trading.