Frontier Airlines sees positive response to new premium offerings

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.