Frontier swings to surprise profit, sees smaller-than-feared quarterly loss on higher airfares

Frontier Airlines reported a surprise third-quarter profit and forecast a smaller-than-feared loss for the fourth quarter, helped by higher airfares that softened the impact of record fuel costs. Shares jumped about 9% in early trading. The Denver-based ULCC said adjusted earnings came to 18 cents per share versus a year-ago loss of 34 cents, with revenue rising 53% to an all-time high of $1.36 billion. Frontier’s unit revenue jumped 30%, while unit costs—including fuel—rose 18%. For the October-December quarter, it expects a $4.75 per gallon fuel price and unit revenue growth above 20%.