Frontier’s unwarranted optimism; CEO claims turnaround
Frontier Airlines CEO Barry Biffle presented an optimistic outlook at a recent conference, citing improved financial performance and revenue trends. Despite operational challenges, Biffle expects Frontier to achieve double-digit margins by Q2 2025. Interestingly, higher fares bring higher ancillary revenue, and this explains the airline’s pivot, according to Crankly Flier:
“Common sense suggests that if the fare is lower, people will spend more on ancillary services. But in reality he says it has always been that a lower fare means people pay less for ancillaries. So they need to get a higher fare. That’s the point of the entire effort to remake the airline’s fare products.”
The airline's true turnaround will be more evident after seeing Q1 2025 results, typically a challenging period. While Biffle's positivity is expected given his role, sustained improvement over a longer period is needed to confirm Frontier's recovery.
As all Cranky Flier articles are, it’s worth a read
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