Frontier Airlines is changing the structure of its pricing scheme and eliminating change fees for most of its fare classes, as part of a broader effort to revitalize its brand, which has been struggling to turn a profit in recent years.
The changes include simplifying its fare classes to basic, economy, premium and business and offering customers who find a lower airfare elsewhere 2,500 Frontier miles.
«This is ‘The New Frontier’ and we are committed to offering more than the lowest rates – we offer the best price for all the options you want and the customer service you need, when you need it,» said CEO Barry Biffle in a statement. «No gimmicks, just really low prices and good customer service.»
Frontier’s new fare structure somewhat mirrors that of a more traditional airline: The base fare is like basic economy, where travelers would have to pay additional fees if they wanted to check a bag or choose a seat. The other levels offer more benefits included in the air ticket.
Economy, Premium and Business will have no change fees, a big change for an ultra-low-cost airline like Frontier. Travelers purchasing a base fare may still be subject to change fees. One of the airline’s biggest competitors, Spirit, charges Change and cancellation fees depending on the number of days before departure.
| Basic Rate | Economy package (new) | Premium Package (new) | Business package (new) | |
|---|---|---|---|---|
| personal item | Including | Including | Including | Including |
| Hand bag | To buy | Including | Including | Including |
| Board first | To buy | To buy | Including | Including |
| Choose your seat | To buy | Included (Standard) | Included (Premium) | Included (UpFront Plus) |
| Checked bags | To buy | To buy | To buy | Two bags of 50 pounds each. |
| No change/cancellation fee | N/A | Including | Including | Including |
| Package prices | N/A | From $30 | From $50 | From $100 |
| Source: Frontier Airlines |
Changes in customer service
Frontier is also making some changes to its customer service. The airline is extending the validity of flight credits issued on or after May 17 from three months to 12 months.
The airline is also bringing back 24-hour customer service for travelers with elite status in the Frontier Miles program. Border previously fired its phone line in favor of a 24/7 chat tool, as part of a bid to optimize its customer service.
Frontier’s digital platforms will also see some updates. The airline said it plans to update its app to «simplify travel planning» for customers.
Ultra-low cost has not been profitable in recent years, in part due to an oversupply of capacity in popular leisure markets. Frontier executives are in the midst of reviewing their strategy as they try to improve their results.
Some of these changes include introducing a fare class for business travelers and moving capacity out of places like Florida and Las Vegas.
“What happened is that low cost beat low cost, right?” Biffle said at the JPMorgan Industrials conference on March 12, referring to companies like Spirit, JetBlue and Southwest. «We opened Sam’s Club, Target, Costco and Walmart, all on the same block in Florida.»
Junk fees take center stage
The changes also come as the Department of Transportation released a final rule on junk fees, which would require airlines to disclose all fees related to checked bags, carry-on bags, changing a reservation or canceling a reservation.
Several major U.S. airlines, along with industry trade group Airlines for America, filed a lawsuit against the rule on Monday, arguing it was a regulatory overreach that could create more confusion for consumers.
A Frontier spokesperson said the changes were not related to the DOT rule.
«We did this because it will now be easier to compare our products with other airlines so customers can quickly and easily see that we have the lowest overall prices,» the spokesperson said.
Biffle hinted that it would improve Frontier’s price transparency when asked about the DOT rule during a call with analysts on May 2.
«I think it will really address a lot of these transparency issues and do it very clearly and directly,» he said during the call. «So I think we can get to the spirit of what they’re looking for.»
Additional reporting by Gordon Smith
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