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Frontier beats quarterly revenue estimates, postpones jet shipments

Frontier Group, the parent of budget carrier Frontier Airlines, beat Wall Street price quotes for secondquarter earnings on Thursday, and said it will delay taking shipments of 54 Plane jets.

Airlines in the U.S. are experiencing a summer travel boom and anticipate to shuttle 271 million guests during the season, a. 6.3% increase over in 2015, according to Airline companies for America,. a group representing major providers.

Nevertheless, carriers have increased seats in the domestic. market in excess of demand, pressuring air travels at the. price-sensitive end of the market.

Frontier's profit beat was helped with by tighter expense. initiatives that included simplifying its network. It also. gained from its sale and leaseback handle the quarter.

The carrier stated on Thursday it was deferring deliveries of. 54 Jet jets to in between 2029 to 2031. Frontier previously. anticipated to get the deliveries for the jets from 2025 to 2028.

Airlines operating specific Airplane A320neo jets have also. been impacted by difficulties with Pratt & & Whitney's Geared Turbofan. ( GTF) engines, which have actually forced them to take a variety of its. aircraft out of service.

Last month JetBlue likewise said that it would postpone. deliveries of 44 Jet planes to 2030 and beyond as part of. its efforts to increase incomes.

On an adjusted basis, Frontier earned 14 cents per share in. the second quarter ended June 30, compared with expert. estimates of 12 cents per share, according to LSEG information.

Its cost per offered seat mile came in at 8.98 cents, down. 6% from the previous year.

(source: Reuters)