Frontier Airlines Airbus A320 departs from Los Angeles International Airport on August 27, 2020 in Los Angeles, California.
AaronP | Bauer-Griffin | GC Images | Getty Images
Shares of Frontier Airlines rose more than 5% in extended trading on Wednesday after the budget carrier posted better-than-expected quarterly results, despite warnings about weaker travel demand due to the delta variant. of coronavirus.
Frontier said it expects maximum to break even in the third quarter compared to a previous forecast to post a profit due to the fast-spread variant.
“Over the last week, we have noticed a softening in the level of reservations over seasonal standards which we believe is directly linked to the increase in the numbers of COVID-19 cases associated with the Delta variant,” the carrier said in a quarterly report. “The impact of the Delta variant on reservations, and the duration of that impact, are difficult to predict.”
CEO Barry Biffle said the widespread availability of vaccines is likely to offset the effect of the delta variant.
Denver-based Frontier, which went public this spring, reported net income of $ 19 million for the second quarter, thanks to a boost in federal aid. This compares to a loss of $ 50 million a year earlier. Revenue nearly tripled to $ 550 million in the second quarter from a year earlier. It is above the 548.4 million analysts forecast.
Stripping the articles once, Frontier’s loss per share was 24 cents a year, tighter than analysts ’expected 30 cents.
Correction: An earlier version misstated how many gains Frontier had.