by Donald Wood
Last updated: 9:00 AM ET, Tue April 2, 2024
Frontier Airlines announced plans to grow its route network
to underserved, "high-fare" markets like Seattle and Detroit, while
also scaling back in key leisure markets like Las Vegas and Florida.
According to Reuters.com,
Frontier CEO Barry Biffle said the low-cost carrier failed to report a profit
in three of the last four quarters, so the company is shifting its business
model to help return to profitability.
Biffle claims the popular leisure routes are congested with
airlines serving them, which depressed airfares and resulted in Frontier's fare
revenue per passenger dropping by 22 percent year-over-year in 2023.
“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.
In response, Frontier
is adding a new focus on premium travel by adding more seats with extra legroom
and business fares targeted at small companies, with demand for the high-fare
markets “growing at a double-digit pace.”
To take advantage of the current trend of travelers being
willing to spend more on flights, the low-cost carrier is shifting away from
its traditional business model and adding service to underserved markets like Indianapolis,
Seattle and Detroit.
Frontier
plans to reduce flights to Las Vegas and Orlando by around 33 percent this
summer.
“When we look at our route profitability, we make the most
money where we compete with legacies,” Biffle continued. “Where we don't make
money is where we compete with Southwest, JetBlue and Spirit.”
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