The Department of Transportation proposed new rules Thursday on how airlines should accommodate passengers who use wheelchairs.
09.02.2024 - 18:26 / skift.com / Spirit Airlines / Scott Kirby / Vasu Raja / Barry Biffle / Meghna Maharishi
Frontier Airlines is courting a new class of travelers.
The ultra-low-cost-carrier announced Thursday that it is launching a business fare, as part of an effort to reach business travelers. It comes as the airline struggles with softening demand.
Frontier said the ticket, called “BizFare,” would allow companies to save on corporate travel expenses and would be available through a respective company’s global distribution channel.
The new option is an easy win for Frontier, as it allows the carrier to gain extra revenue while catering to a set of travelers that may not normally fly with an ultra-low-cost brand for business trips.
The new class deviates from Frontier’s bare bones business model. It includes a free carry-on bag, a premium seat, priority boarding, and no change of cancellation fees.
Typically, travelers flying with Frontier would have to pay extra for any ancillary perks beyond the basic ticket.
Members of Frontier’s loyalty program can also earn a minimum of 10x the miles for every qualifying dollar spent through the new product.
“For companies with a strong focus on keeping travel expenses down, our Fare is going to be a great new option to integrate into their overall corporate travel mix,” Frontier CEO Barry Biffle said in a statement.
Similar to its competitor, Spirit Airlines, Frontier has been struggling with losses due to weaker-than-expected sales and a lack of an appetite for domestic travel post-pandemic.
Biffle said international travel was “in vogue” but “isn’t going to last” during the carrier’s third-quarter earnings call in October.
Larger carriers like American, Delta and United have also tried to eat into ultra-low-cost carriers’ market share by expanding their basic economy offerings and capacity in leisure destinations in places like Florida, Mexico and the Caribbean.
These larger airlines are betting that customers will be willing to buy their basic economy products, while also paying for premium features.
American chief commercial officer Vasu Raja said in a call with analysts January 25 that the carrier noticed 10% of its revenue came from customers who purchased a basic economy seat and then bought a premium product.
United CEO Scott Kirby made a jab at Frontier during the airline’s third-quarter earnings call, referring to Frontier’s crack down on passengers that tried to take carry-on bags as personal items to avoid paying the extra fees.
“I mean charging people $99 at the gate and paying your employees a commission to take their purses away crossed the line,” Kirby said. “And so while they’ve gone in one direction, we’ve gone the other with an improved product.”
Frontier is set to report fourth-quarter earnings on February 6.
The Department of Transportation proposed new rules Thursday on how airlines should accommodate passengers who use wheelchairs.
Frontier Airlines is making some big adjustments to its network.
Breeze Airways is adding a new city — and state — to its growing route map. The Salt Lake City-based low-cost carrier unveiled plans Tuesday to launch service from Manchester-Boston Regional Airport (MHT) in New Hampshire, and with a handful of new routes.
Spirit Airlines has announced plans to suspend operations at New Hampshire's Manchester-Boston Regional Airport (MHT) on May 8, according to Boston.com.The budget carrier said the decision is due to "ongoing operational constraints related to Pratt & Whitney GTF engine availability and seasonal demand for our MHT flights.""This decision reflects our continuing efforts to make necessary strategic shifts to enable Spirit to compete effectively in the current environment," Spirit added. "We apologize to our guests for any inconvenience, and those with reservations for May 8 or later will be offered a refund. Manchester-Boston Regional Airport is a great partner, and we look forward to returning with seasonal service next winter."Spirit operates nonstop flights to Orlando and seasonal service to Myrtle Beach, South Carolina from MHT. According to Reuters, the airline is the largest domestic operator of GTF-powered (geared turbofan) NEO aircraft and has been battling engine issues since last summer."MHT is grateful to Spirit Airlines for their service to the Manchester community for the last few years," the airport said in a statement. "We understand that difficult decisions have to be made in light of the Pratt and Whitney engine issue. It is important to note that this is a pause in service, not a withdrawal in service. MHT stands ready to warmly welcome Spirit back to the Manchester market when the time is right for them."
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With just weeks away until the first scheduled departure, Spirit Airlines is postponing flights to the brand new airport in Tulum, Mexico. In October, the airline announced new routes to Tulum’s new Felipe Carrillo Puerto Airport but confirmed with Travel + Leisure on Friday thatSpirit will be postponing the start date of the flights indefinitely due to ongoing mechanical issues with engine parts. “We are postponing the start date of our Tulum (TQO) service as we continue to manage operational constraints related to Pratt & Whitney GTF engine availability,” a representative from Spirit Airlines said in a statement to T+L. The flights were originally set to takeoff from both Orlando International Airport and Tampa International Airport on March 28. “We apologize to our guests for any inconvenience, and we’re reaching out to those with impacted travel plans to offer alternate flight options or a refund,” a representative from Spirit shared with T+L. “We look forward to the opportunity to serve Tulum in the future and will share more once we have an updated schedule.” Spirit Airlines has faced headwinds with the repair and availability of the engine parts since August 2023. «This new issue is yet another frustrating and disappointing development,» Spirit Airlines CEO Ted Christie said to investors, according to Reuters. Spirit Airlines didn’t provide a timetable for when the Tulum flights could be restored, however company executives have discussed the engine service timeline during a recent earnings call. “The timing of engine removals and aircraft being pulled through service is fluid,” Spirit Airlines’ Chief Commercial Officer and Executive Vice President Matthew Klein said during the airline’s most recent earnings call. Tulum's airport opened to domestic flights on December 1, 2023 when a Viva Aerobus flight landed to a special water cannon salute.
Another week, another round of route announcements from Frontier Airlines.
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