Dive Brief:
- Frontier Airlines is focusing on premium offerings, improving digital experiences and strengthening loyalty as part of its New Frontier plan, executives said on a Q4 2024 earnings call last week.
- A more premium offering introduced last year, UpFront Plus, is performing well and has helped drive revenue growth, according to Bobby Schroeter, chief commercial officer at Frontier.
- The airline is launching first-class seats in the first two rows of the aircraft in late 2025. “This will enhance the experience for customers seeking more space while attracting higher-yielding travelers who typically book premium products on other airlines,” Schroeter said.
Dive Insight:
Frontier has jumped on the premium bandwagon and seen revenue gains in turn.
By providing premium experiences at lower price points, the airline sees an opportunity to meet its customers' desires for more luxurious experiences.
UpFront Plus, “a blocked middle seat European-style business class,” achieved over 70% sold load factors within six months of launch in the fourth quarter, CEO Barry Biffle said. “This is just customers that were already on board willing to pay for a better experience.”
The budget airline is also upgrading its digital experience and plans to launch a redesigned app for Android in the near future, followed by iOS. It will redesign its website later in the year.
“This stronger focus on customer experience, coupled with our low fares, will naturally foster loyalty and we are building on that foundation with strengthening Frontier miles to drive greater engagement and long-term value,” Schroeter said.
In the past year, Frontier introduced free checked bags for cardholders, expanded mileage redemption options to include ancillary purchase, and offered more premium perks for Elite members.
Loyalty presents a significant financial opportunity, too.
Frontier’s co-brand revenue per passenger is “under $3 compared to over $30 at legacy and other low-cost carriers,” Schroeter said. “Even capturing a fraction of the legacy and low-cost carrier levels represents a meaningful and achievable growth opportunity over the next few years.”
