Frontier Airlines Offers New Incentives to Attract Premium Flyers

Frontier Airlines, an ultra-low-cost carrier, is targeting premium flyers from other airlines with new travel perks, according to Bobby Schroeter, the company’s chief commercial officer. The company hopes to entice travelers who may be dissatisfied with their current loyalty programs by offering limited-time offers such as companion travel certificates and instant elite gold status for $69.

This move comes as U. S. carriers are looking for ways to differentiate themselves among premium travelers, who have been a major source of revenue for airlines in recent years. With strong demand from higher-income travelers, airlines have been able to offset a decrease in spending from price-sensitive customers.

Schroeter stated that Frontier is aware of the growing dissatisfaction among travelers with changes made to loyalty programs and other services, like Southwest Airlines’ decision to end its free baggage policy. He believes that this presents an opportunity for Frontier to offer more value to its customers and improve its own financial standing.

To attract more customers, Frontier is rolling out an all-you-can-fly annual pass for around $300, which is half the original price. This move has already generated positive responses, with the company’s stock rising by 14% after the announcement.

Frontier aims to increase its loyalty revenue to $6 per passenger by 2026 and $10 by 2028. This strategy involves taking market share from other carriers, such as legacy carrier programs that earn $30 to $40 per passenger.

In addition to the annual pass, Frontier is also offering its credit card holders companion passes for a limited time with every $3,000 spent. The company will also match up to 1 million combined miles from multiple airlines.

Schroeter believes that these incentives will attract customers who may not have considered Frontier before, as they see the value in these new offers. This is expected to lead to an increase in the average income level of Frontier’s customer base.

Lastly, Frontier is offering instant Elite Gold Status to members of Southwest Airlines, JetBlue Airways, Spirit Airlines, or Alaska Airlines’ loyalty programs for $69 until December 2026. This status comes with perks such as a free carry-on bag, priority boarding, and upgrades to premium seating.

Overall, Frontier is making a strategic move to attract premium flyers and improve its loyalty program. With these new incentives, the company hopes to increase its customer base and revenue in the coming years.