Why is Frontier so expensive now? If you've searched for a cheap flight lately and found Frontier fares higher than you remember, it isn't your imagination. In its third-quarter results released Wednesday, Frontier said the average fare it collected per passenger between July and September was $67.82, up 71% from $39.74 a year earlier. Add in bag, seat and other fees, and the typical passenger paid Frontier about $138 per flight, up from about $106.
That can still beat the big airlines on plenty of routes. But the gap is closing, and the airline that built its name on rock-bottom sale fares looks a lot different than it did a year ago.
Why Tickets Cost More
Fuel is a big part of it. Frontier paid an average of $3.96 a gallon over the summer, 56% more than a year earlier, which added about $150 million to its costs in a single quarter. It expects to pay even more, about $4.75 a gallon, this winter. Every airline is dealing with the same problem, and it's pushing fares across the industry higher.
But fuel doesn't explain all of it. Frontier has been working hard to earn more from each passenger, which it calls revenue management, and that means fewer rock-bottom seats and more tickets sold at higher prices. Its fees rose too, by 7% per passenger, so the extra money isn't just fees being folded into the ticket price. Both the fare and the total you pay went up.
It's working for Frontier, at least on paper. Revenue jumped 53% to $1.36 billion as it flew 18% more and carried 9.8 million passengers. Excluding a one-time charge tied to returning some planes early, it made a $40 million profit. Counting that charge, it lost $104 million. "Frontier's revenue execution in a higher than expected fuel environment resulted in an adjusted profit," said CEO Jimmy Dempsey.
There is one warning sign in the numbers, though. Frontier's planes were slightly emptier this summer, 78.8% full compared with 80.7% a year earlier, which suggests some travelers are noticing the higher prices.
Frontier · Average paid per passenger
The Budget Fare Isn't So Budget Anymore
July to September, compared with a year earlier. Always compare the total with fees, not just the fare.
Contrail
Frontier Is Changing, Too
The higher fares come as Frontier tries to become something more than a bare-bones airline. It's adding First Class seating, onboard Wi-Fi and better perks in its loyalty program, the kinds of things budget airlines used to skip entirely. Frontier also says its fleet of newer Airbus planes is more than 40% more fuel-efficient than the major US airlines', which it's pitching as a long-term cost advantage.
Don't expect prices to drop soon. Frontier told investors it expects revenue per seat to rise more than 20% again this quarter compared with last year, while adding only 5% to 6% more flying.
How to Still Fly Frontier Cheap
Frontier still runs sales, and booking during one is the easiest way to get back toward the low fares it's known for. Sign up for its emails or follow its deals, and book early for holiday trips, since higher fares plus less extra flying usually means fewer cheap seats close to departure.
Always compare the total, not the headline fare. With fees averaging about $67 a passenger, a Frontier ticket that looks $30 cheaper than one on a bigger airline can end up costing more once you add a carry-on and a seat. Pack light enough to fit everything in a personal item if you can, and check the full price on a bigger airline before you book. On some routes, the gap is now small enough that you'll get more for your money elsewhere.
