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Frontier Airlines lowers forecasts after Delta Variant damages bookings

Frontier Airlines’ Airbus A320 will take off from Los Angeles International Airport on August 27, 2020 in Los Angeles, California.

AaronP | Bauer-Griffin | GC Images | Getty Images

Frontier Airlines We announced better-than-expected quarterly results, but warned that the Covid Delta variant was damaging demand.

Frontier Airlines said Wednesday that it expects a break-even point at best in the third quarter, compared to previous forecasts for profits, due to the rapidly expanding variant.

“Last week, we noticed a softening of booking levels above seasonal standards that seemed to be directly related to the increase in the number of COVID-19 cases associated with delta type,” the carrier said in a quarterly report. “It is difficult to predict the impact of delta variants on bookings and the duration of that impact.”

In Thursday morning trading, stock prices fell by more than 1%.

CEO Barry Biffle said the delta variant is likely to be less effective as the vaccine becomes more widely available.

The Denver-based frontier, which was unveiled this spring, reported net profits of $ 19 million in the second quarter, thanks to increased federal aid. This is compared to the $ 50 million loss a year ago. Second-quarter revenue almost tripled year-over-year to $ 550 million. That’s more than analysts expected at $ 548.4 million.

Removing the temporary items, Frontier’s loss per share was 24 cents a year, narrower than analysts expected.

Correction: In previous versions, the frontier misunderstood the number of revenue calls received.

Frontier Airlines lowers forecasts after Delta Variant damages bookings

Source link Frontier Airlines lowers forecasts after Delta Variant damages bookings

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