Frontier Airlines breaks away from ultra-low cost ticket model

By Mary Schlangenstein | Bloomberg

Frontier Airlines, famous for deeply discounted ticket prices and bare-bones service, is adding new fare categories that include carry-on bags, seat selection and no cancellation fees as it seeks to appeal to US travelers who want more upscale options when they fly.

Frontier, a unit of Frontier Group Holdings Inc., is now offering four fare and service categories basic, economy, premium and business with varying benefits, the carrier said in a statement Friday. It’s also dropping change and cancellation fees for all but its lowest level of basic fares, improving live phone support for passengers and extending to one year the expiration time for flight credits.

Fares for the economy option will start at $30 more than the basic category, with premium at least $50 more and business starting at $100 more, Frontier said.

The changes reflect increasing pressures on carriers including Frontier and Spirit Airlines Inc. since the pandemic as the largest US airlines offer a broader range of fares from stripped-down options to multiple premium classes, a shift known as “premiumization.”

Deep fare discounters succeeded for years with rapid growth and low operating costs that allowed them to make money with charges for anything extra, like coffee or bottled water during flights, printed boarding passes and carry-on bags. Such “ancillary” costs often exceeded the ticket price.

Frontier’s new pricing options are now available only on its website; they will be added to its mobile app in the future. New business and premium categories, which have more leg room, will only be for the first two rows of Frontier’s planes. Business fares offer the airline’s UpFront Plus seating, which blocks off the middle seat in each of those rows.