Since the company was founded, the US airline Frontier Airlines has gained a reputation as a particularly aggressive low-cost airline. The business model now seems to have changed a bit, as the company says it is increasingly focusing on high-yield routes.
Frontier Airlines was once completely specialized in private customers and had almost exclusively so-called leisure routes in its portfolio. There has been a change for some time now, as people are increasingly moving away from the all-eco concept. The carrier wants to benefit from the fact that there is increased demand in the so-called premium range and is also offering something similar to business class. These should primarily be characterized by more legroom and some included services.
Frontier Airlines is now also tackling the route network and, according to General Director Barry Biffle, is reducing its presence at tourist airports such as Las Vegas and Orlando. In return, you strengthen bases where there is less competition and the proportion of business travelers is higher. In other words: On routes where you don't have an aggressively priced "playmate", Frontier Airlines can charge higher ticket prices and therefore make more money.
The carrier, which once wanted to merge with its competitor Spirit Airlines, is probably in dire need of this because it has been in the red for a long time. The redesign of the route network should mean that in the future there will be less direct competition with Jetblue, Southwest Airlines and/or Spirit Airlines. Higher yields should then bring the loss-making low-cost airline back into the profit zone.
Managing director Biffle speculated to Reuters News that this will lead to the margin increasing to around ten to 2025 percent by 14. For comparison: In the previous year this value was only one percent. The company also has to prepare for resistance from the unions, as they are attacking the impending closures of bases and the associated transfers to other or new bases.