Sept 11 (Reuters) - Frontier Airlines 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.