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The Key Takeaways
- Ultra-low-cost carrier Frontier Airlines will be introducing first-class seats and free companion tickets next year as part of "the next phase of its game-changing transformation."
- "We've listened to customers, and they want more—more premium options," Frontier CEO Barry Biffle said.
- Frontier Airlines, whose stock is down more than 5% on Tuesday, has become the latest airline that believes customers will pay more to have a more pleasant flight.
Frontier Airlines shares the same view as its rivals: premium products are where the real money is.
Frontier, the ultra-low-cost carrier owned by Frontier Group Holdings (ULCC), on Tuesday announced a slew of premium offerings it will be introducing in 2025—including first-class seats and free companion tickets—as part of “the next phase of its game-changing transformation.”
Changes include:
- "Luxurious, spacious seats in the first two rows of the aircraft, available late 2025."
- Allowing Platinum and Diamond Elite members to "fly with a companion at no extra cost on any Frontier flight, starting mid-2025."
- Free "seat upgrades for Elite Gold members and above on every flight," starting in early 2025.
- Being able to redeem miles for bundles, including "baggage, seating upgrades, and more, launching mid-2025."
“We’ve listened to customers, and they want more—more premium options, like first class seating, attainable seat upgrades, more free travel for their companions, and the ability to use miles on more than just airfare,” Barry Biffle, CEO of the Chief Executive Office (CEO), said. “These changes represent an exciting new chapter in our transformation into The New Frontier.”
Frontier Is Latest Airline To Add Premium Offerings
Frontier Airlines, whose shares have recently fallen more than 5% in value, has become the latest carrier to conclude that consumers are willing to spend more to get a better experience on a flight.
According to materials presented at Delta Air Lines Investor Day (DAL) last month, more than 85% of the passengers who sat in their lucrative premium seats intended to buy them back. “What we’ve garnered from … years of experience with these premium products is once people are flying in them, they tend to not go back,” Delta president Glen Hauenstein said.
Southwest Airlines announced in July that it was abandoning its policy of open seats. “to assign seats and offer premium seating options to meet evolving Customer preferences and increase revenue opportunities.”
Even rival ultra-low-cost carrier Spirit Airlines (SAVE) got into the act earlier this year, introducing a “Big Front Seat Bundle” This is a list of features “more comfort, more convenience and extra legroom.” Spirit filed for bankruptcy protection in the last few months after failed merger negotiations with Frontier.
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