If you fly budget to save money, check this before you book your next trip.
Frontier Airlines — now the largest budget airline in the country — just reported that its airfare jumped 71% in the third quarter. The average fare the airline collected per passenger went from $39.74 a year ago to $67.82. And once you add the extras Frontier is famous for charging separately — bags, seat picks and the rest — the total revenue per passenger climbed 30% to $138.22.
What’s driving it? Fuel. Frontier’s fuel bill soared 82% to $425 million in the quarter, with jet fuel prices up sharply since the war in Iran began in February. Airlines across the board are passing those costs on to passengers — Frontier just pushed the hardest.
There’s another piece to it: Spirit Airlines, Frontier’s biggest budget rival, collapsed this spring. About 30% of Frontier’s business overlapped with Spirit’s, and Frontier has been picking up Spirit’s old passengers ever since. Frontier’s CEO, James Dempsey, says the revenue jump breaks down roughly into thirds — better pricing, Spirit’s exit, and fuel-driven fare hikes — and he expects the higher prices to stick.
And here’s the wild part: people are still booking. Frontier carried more than 9.8 million passengers in the quarter, up 18%, and posted record revenue of $1.4 billion — even while reporting a $104 million net loss tied to fuel costs and returning some planes early.
What it means for you: the days of the automatic $39 budget ticket are fading. Compare the FULL checkout price — fare plus bags plus seats — across airlines before you buy, because the cheapest-looking ticket is not always the cheapest flight anymore.
Based on Frontier Airlines’ third-quarter earnings as reported by CNBC and KTLA. Photo: Bill Larkins, CC BY-SA 2.0, via Wikimedia Commons.
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