Frontier Airlines overhauls network, turns to premium seats in comeback

US no-frills carrier Frontier Airlines is focusing on growing its network in "high fare" markets like Seattle and Detroit at the expense of its footprint in leisure markets such as Las Vegas and Florida in a bid to lift earnings, its CEO told Reuters. The Denver, Colorado-based ultra-low-cost carrier has failed to report a profit in three of the last four quarters despite a travel boom. Frontier's struggles, along with some other discount carriers, has some analysts raising questions about their business model. Frontier CEO Barry Biffle pinned the blame on excess industry capacity in key leisure markets that has depressed airfares. Frontier's fare revenue per passenger fell 22% in 2023 from the previous year. "What happened last year in Florida was the equivalent of Costco, Sam's Club, Walmart, and Target all opening up on the same block," Biffle told Reuters. Frontier is trying to boost revenue by tapping into growing demand for premium travel, adding more seats with extra legroom and business fares targeted at small companies. Biffle said demand for premium seats has been growing at a double-digit pace and currently accounts for as much as 12% of the seats on Frontier's flights. These products also mark a shift away from the traditional business model of ultra-low-cost carriers which offer a no-frills experience at rock-bottom fares and charge heavily for ancillary services. With consumers more willing to splurge on travel, demand for premium cabin has gone up. While US carriers generally do not break out revenue from different cabins, premium cabins accounted for 39% of Delta Air Lines' passenger revenue last year, up from about 38% in 2022.<br/>