By Doyinsola Oladipo
NEW YORK (Reuters) -Frontier Airlines is seeking to lure premium flyers of other airlines, who may feel dissatisfied with their current loyalty perks, by offering new travel incentives, according to a top executive of the ultra-low-cost carrier.
Frontier is betting that limited-time offers like companion travel certificates and instant elite gold status for $69 will attract frequent flyers and gold- and silver-status flyrs of competitors' airlines to its loyalty program. U.S. carriers
have been looking to differentiate themselves among premium travelers as strong demand from higher-income Americans in 2025 has helped airlines offset a pullback in spending by price-sensitive customers.
The company is rolling out the new perks at a time when value is top-of-mind for travelers as some have grown weary of changes to longstanding services and loyalty programs such as Southwest Airlines' move to end its free-baggage policy.
"There's a lot of product services and loyalty programs that people are disenfranchised with right now," Bobby Schroeter, Frontier's chief commercial officer, told Reuters. The company said on Tuesday it will offer fliers an all-you-can-fly annual pass for about $300, slashing the price in half. Shares of the carrier rose 14% on Tuesday after the announcement, underscoring investor bets that Spirit's second bankruptcy filing could reshape the U.S. budget airline landscape and give Frontier a competitive edge.
"We looked at it and said we should be providing more value in our programs that will translate to better experiences for our customers and actually more opportunity on our side as well, financially."
Frontier plans to double its loyalty revenue to $6 per passenger by the end of 2026 and $10 by the end of 2028. The company believes an opportunity exists to take share from other carriers like legacy carrier programs that earn $30 to $40 per passenger, Schroeter added.
In late August, the company said that for a limited time it will offer its credit card holders companion passes starting at $3,000 in everyday spending and will match up to 1 million combined miles from multiple airlines.
“We are going to get customers that are coming in that may not have otherwise come in before because they see the value,” Schroeter said, adding the company anticipates the average income level of its customer base rising as a result.
The Denver-based carrier also said it will offer travelers who are members of Southwest Airlines, JetBlue Airways, Spirit Airlines or Alaska Airlines' loyalty programs instant Elite Gold Status with Frontier for $69 until December 2026, which includes a free carry-on bag, priority boarding and complementary upgrades to premium seating.
Schroeter said the company is weighing how to offer other perks like lounges and free Wi-Fi without increasing costs significantly.
(Doyinsola Oladipo in New York; Editing by Matthew Lewis)
