Front-seat tier… Frontier Airlines, an ultra-low-budget carrier with cardboard-like thin seats, is getting into the first-class game. Starting next fall, Frontier plans to introduce four first-class seats at the front of its planes. The Denver-based airline will also boost loyalty perks (like free seat upgrades for top customers). Frontier’s CEO said the premiumization initiatives will be a game changer, expecting they’ll bring in about $250M in sales in 2026.
More tiers, fewer tears… Frontier is just the latest budget carrier to tack on premium options to compete with bigger players. In July, bare-bones airline Spirit expanded to four fare tiers and introduced a perk-filled package that would include free Wi-Fi, a checked bag, and “unlimited” snacks and bevs (booze included). Like Frontier, Spirit’s trying to win over higher-paying customers, but the shift may’ve been too late: Spirit recently filed for bankruptcy. Meantime, Southwest Airlines plans to offer extra legroom and assigned seats to boost revenue. Budget airlines’ premium push comes as major carriers also expand tiers.
Big wings: Delta Air Lines, United, and others have added budget-friendly fares (think: basic economy) to compete with low-cost airlines, but they’ve also expanded first-class spots and roomier seats (like economy plus).
Premium profits: While main-cabin seats vastly outnumber premium seats, last quarter Delta’s premium tickets made up nearly half its ticketing revenue.
It’s time to fly upmarket… Budget airlines pressured major carriers to lower their fares, and now the “win by undercutting them on price” model isn’t working anymore. The likes of Spirit and Ryanair have struggled to capitalize on still booming revenge travel because they don’t have profitable fares like business class (Spirit hasn’t posted an annual profit since 2019). Now they’re trying to ditch their no-frills rep.