Frontier Airlines has seen a significant increase in base fares, with a 71% rise between July and September compared to the same period a year ago. This increase is attributed to higher jet fuel costs and the absence of competition following Spirit Airlines' exit from the market in May. Frontier has taken over many routes previously operated by Spirit.

Frontier CEO James Dempsey said fuel costs accounted for about a third of the revenue increase, while improved revenue management strategies contributed another third. He also noted that the loss of Spirit Airlines, which went out of business in May, played a role in the rise in fares.

"I would say it’s about a third better revenue management…maybe about a third Spirit, and about a third fuel," Dempsey told analysts.

Industrywide airfare prices in September were up about 22% compared to the same period last year. Frontier reported a financial loss of $104 million in the third quarter, despite plans to introduce first-class seats and Starlink Wi-Fi on its aircraft starting early next year.

Frontier will start installing new first-class seats 'imminently,' with these expected to be available on flights departing early spring.