Frontier Airlines is adding a new product that is not typically synonymous with a budget carrier: first class seating.
These first class seats will take up the first two rows of Frontier’s cabin and be available in late 2025.
The carrier is also revamping its loyalty program, where it will start offering free upgrades to elite members, and a free companion travel for its platinum and diamond-level members.
Frontier CEO Barry Biffle told CNBC that he expects the new initiatives to bring in about $250 million in 2026 and $500 million in 2028. He added that not offering first class seats and enough loyalty perks led to a gap in their revenue model.
“While we have the lowest costs in the industry, we don’t have the best revenue model,” he said to CNBC.
Frontier Looks to Be More Competitive
Frontier scrapped most of its change fees and changed its pricing scheme in May as part of a wider effort to make the carrier more competitive. The airline started bundling fares and simplified its fare classes to basic, economy, premium and business.
The changes come as carriers are expanding their premium products in a push to cater to more high-spend travelers. Spirit Airlines, which filed for Chapter 11 bankruptcy in November, announced in July that it would add premium seats that block off the middle seat.
And during Delta’s investor day last month, executives said they expected premium seats and its loyalty program to make up more than 60% of its revenues.
Southwest also said it would add seats with extra legroom as part of a push to make the airline more profitable after facing pressure from an activist investor.
Airlines Sector Stock Index Performance Year-to-Date
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