09:04 AM EDT, 04/02/2024 (MT Newswires) -- Frontier Group Holdings ( ULCC ) plans to focus on premium travel and higher-fare markets, shifting away from leisure markets to drive revenue, Reuters reported Tuesday, citing Chief Executive Officer Barry Biffle.

Biffle told Reuters that overcapacity in key leisure markets has weighed on airfares, while demand for premium seats continues to grow. The CEO also noted that Frontier makes more money in markets where there is less competition with low-fare carriers such as JetBlue Airways ( JBLU ) and Spirit Airlines ( SAVE ) , the report added.

Frontier plans to add flights to cities like Indianapolis, Seattle, and Detroit, and reduce those to Vegas and Orlando by a third by the summer, Biffle told the newswire. According to the report, the CEO expects the initiatives to increase the company's pre-tax margins to between 10% and 14% in 2025 from about 1% last year.

Frontier Group ( ULCC ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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