Free Checked + Carry-On Bags On Frontier: An Unsustainable Business Model
I applaud Frontier Airlines for its clever free baggage promotion to woo disgruntled Southwest Airlines flyers, but it seems to turn the “ultra-low-cost” carrier’s business model upside down. Teasing a “permanent” change to allow free bags would require a fundamental change in the very identity of the carrier.
Frontier Offers Disgruntled Southwest Airlines Customers Free Checked Bags
To be sure, Frontier Airlines has suffered while full-service network carriers have prospered. Frontier used to be full-service as well way back in the day, but for many years has offered an “unbundled” approach to airfare, enticing customers with low base fares but charging extra for everything from carry-on bags to checked bags to printing boarding passes to seat assignments to beverages or snacks.
It’s a business model that has worked remarkably well in Europe for carriers like Ryanair and EasyJet, but as legacy US carriers like American, Delta, and United have become agile in competing with their own basic economy fares, customer demand for the budget carriers has softened.
To further exacerbate matters for Frontier, its customer base has become more adept at packing lighter and bringing their own snacks and drinks, trimming the ancillary revenue that Frontier relies on to turn a profit.
More recently, Frontier has added a “business class” cabin with blocked middle seats and loosened up change fees in an effort to win more business. The problem is that by sacrificing more ancillary revenue, base fares must go up in order to turn a profit and when base fares go up, buying on a full-service airline becomes more attractive.
Free Bags For Everyone On Frontier!
In its latest salvo, Frontier is offering a free carry-on bag and a free checked bag on all nonstop flights through August 18, 2025 (with the limitations I note below). Frontier frames it as a fresh start:
Some airlines have changed. They’ve raised fees, taken away perks, and made travel feel like a one-sided relationship. If your airline is treating you like an afterthought, maybe it’s time to file for divorce. Frontier is here for the rebound – offering a fresh start with an unbeatable deal.
For all bookings for nonstop travel made between March 18th and August 18th, customers will receive the “Economy Bundle” at no extra cost (an upgrade from the cheapest “Basic Economy” fare category), with perks including a free carry-on bag, free seat selection, and free flight changes. On top of that, Frontier is also offering a free checked bag for flights departing May 28th through August 18th when you use the promo code FREEBAG during check-out.
Note that the promo code will only be valid for bookings made on or before March 24, 2025.
Frontier CEO Barry Biffle explained:
“We’ve always had heart. Some airlines are walking away from what travelers love, but we’re running towards it. Think of this as the ultimate ‘divorce your old airline’ deal. If travelers show us the love, we’ll make these perks permanent.
“At the end of the day, travelers just want to be valued. We’re bringing back the things people love about flying – free bags, free seat selection, and flexibility – without the extra fees. No games, just great value.”
Again, kudos to Frontier. It’s a cute promotion and I hope it receives a lot of positive press.
But it simply is unsustainable.
Why This Move Is Unsustainable
When Frontier teases that it will “make these perks permanent,” I cannot help but shake my head.
See, I want Frontier to succeed. I want Spirit to succeed. Both offer a unique product in North America that is good for consumers who travel light and good for all consumers because it tends to place downward pressure on airfare in competitive markets.
Of course, one problem in the USA is that when Frontier flies to major airports like Los Angeles, Chicago, or New York, the airport fees are high and those must be passed on to customers. The base fares are so low that it is impossible to make money from flying airplanes (heck, even Delta Air Lines cannot do that).
While Breeze and Avelo have made a point of trying to fly out of “secondary” airports, budget carriers in Europe have a very different prospect by avoiding some of the major airports that have costly fees attached. Is Beauvais really Paris? Is Hahn really Frankfurt? What about Charleroi “near” Brussels?
Yet Frontier flies to LAX, DEN, ORD, MIA, and JFK…all high-cost airports.
CONCLUSION
Kudos to Frontier for the cute initiative of free bags to poach customers from Southwest Airlines.
But I just don’t see any scenario in which this is sustainable and even as Frontier struggles to find its identity, I hope it is not by trying to be a full-service carrier, because we have enough of those already in the USA, and Frontier lacks the network to compete.
We need a nationwide budget carrier, which is why I support the merger of Frontier and Spirit. But that business model must find a way to squeeze more ancillary revenue out of customers to be sustainable and offering free checked and carry-on bags will not help the bottom line: you don’t make up for losing money on every customer by volume….
image: Frontier Airlines