Frontier Airfares Jump 71% as Fuel Costs Bite

Frontier Airlines, the largest budget carrier in the US, raised average fares 71% in the third quarter, with fare revenue reaching $67.82 per passenger compared with $39.74 a year earlier.

Once fees for checked and carry-on bags are included, total revenue per passenger climbed 30% to $138.22. Passengers kept coming anyway: the airline flew more than 9.8 million people, up 18% and about 1.5 million more than last year.

Even so, Frontier's quarterly loss widened to $104 million from $77 million, as its fuel bill surged 82% to $425 million. The airline said demand remains strong at the higher prices and forecast fourth-quarter results ranging from an adjusted loss of 15 cents per share to adjusted earnings of 5 cents per share.

Frontier, which overtook Spirit Airlines as the country's biggest discount carrier before Spirit's collapse in May, saw its shares rise about 6% in early trading Wednesday.