Frontier Airlines sees positive response to new premium offerings

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Frontier Airlines sees positive response to new premium offerings

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Barry Biffle Frontier Airlines COE | Official Website

By Sky Industry News

Feb 14, 2025

Frontier Airlines has reported a positive customer response to its premium offerings introduced throughout 2024. The airline ended the year with a net profit, marking its first since 2019.

During the company's Q4 2024 earnings call on February 7, CEO Barry Biffle noted that the UpFront Plus product sold over 70% of available seats within six months of its launch. UpFront Plus features European-style business class seating with a blocked middle seat. Biffle stated, "We are pretty jazzed about our customers looking for a premium experience and we are not attracting, we are not stealing share or anything. [These are] just customers that were already onboard willing to pay for a better experience."

Biffle also mentioned positive feedback from passengers regarding upcoming first-class seats. He emphasized that data shows customers are willing to pay for enhanced experiences. "Premium seating is a key focus, providing customers with more choice while driving revenue growth," he added.

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The airline's Chief Commercial Officer, Robert Schroeter, highlighted demographic changes resulting from these premium options. "We have actually seen an increase on the business side in terms of the travelers there. Incomes have gone up," Schroeter explained.

Schroeter revealed that co-brand credit card revenue per passenger stands at $3 compared to $30 at other airlines, presenting growth opportunities as loyalty credit card demographics shift. He remarked, "Other carriers...are not able actually to capture value within that status; we are going to be able to provide value to folks like that."

Looking ahead, Frontier plans further premium offerings in 2025 as part of 'The New Frontier.' These include first-class seats by late 2025 and various benefits for Elite Gold members and Frontier Miles Platinum and Diamond Elite members throughout the year.

In financial terms, Frontier ended Q4 2024 with a net profit of $54 million and full-year revenues of $3.7 billion—its first annual profit since 2019 when it recorded a non-adjusted net profit of $251 million.

Despite worsening load factors in 2024, average revenue per passenger increased by 6% in Q4 to $117.17. Biffle noted that flown load factors require adjustment due to low demand on certain days post-COVID-19: "The biggest issue has been that we continue to see Tuesday, Wednesday, and Saturdays are just not in demand like they were pre-COVID."

He suggested load factors could improve in 2025 as return-to-office mandates may benefit US-based carriers by 2026.