Frontier Airlines hikes margin forecast on moderating capacity growth
Frontier Airlines has revised its third-quarter margin forecast, expecting an improvement due to capacity cuts that counterbalance the effects of slowing domestic travel demand. The airline now anticipates an adjusted pre-tax margin between flat and down 2%, an upgrade from the previous estimate of down 4% to 6%. Additionally, it has reduced its capacity growth forecast to 4%-5% from 4%-6%, aiming to enhance its flight network by focusing on high-fare markets with less competition.
Sept 11 (Reuters) - Frontier Airlines (ULCC.O) expects its third-quarter margins to improve compared to prior forecast as capacity cuts offset the impact of moderating domestic travel demand, the low-cost U.S. carrier said on Wednesday.
The airline raised its adjusted pre-tax margin to a range of flat to down 2%, compared with a prior view of down 4% to 6%.
It lowered its capacity growth forecast to between 4% and 5% from the earlier forecast of 4% to 6%.
Frontier added it is expecting to benefit from the changes to its flight network.
CEO Barry Biffle had said in April the company would add flights to “high-fare” markets, where it faces less competition from other carriers and can charge more.
