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Carrier expects higher average income level of customer

base

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Denver-based company plans to lure gold- and silver-status

flyers from competitors with perks

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Frontier considers adding lounges and free Wi-Fi to its

offerings

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By Doyinsola Oladipo

NEW YORK, Sept 3 (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' ( LUV ) 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 ( LUV ), JetBlue Airways ( JBLU ),

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)