Last week, Southwest announced that it’s completely changing its business model, including starting to charge for checked bags. This is a major departure from the carrier’s historical policy of giving all passengers two free checked bags. Well, an unlikely airline is taking aim at Southwest, and I can’t help but chuckle a bit at all of this…
In this post:
Frontier trials the idea of free checked bags
Frontier has announced a promotion targeted at those who would ordinarily be Southwest flyers, which it frames as follows:
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.
So, what’s Frontier offering? For all bookings for nonstop travel between March 18 and August 18, 2025, customers can receive the Economy Bundle for free, with perks including a free carry-on bag, free seat selection, and free flight changes.
On top of that, the airline is throwing in a free checked bag for flights departing between May 28 and August 18, 2025. Tickets must be booked by March 24, 2025, using promotion code FREEBAG.
It’s interesting how the airline is framing this. Frontier claims that if enough travelers “love this deal,” the airline “might just make it permanent,” and that “the more people who jump on board, the better the chances of making this the new normal.”
Here’s how Frontier CEO Barry Biffle describes this:
“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.”
This is a cute promotion, but also unrealistic
The past several years have been really tough for US airlines, with the exception of Delta and United. That’s because the industry has been dealing with higher labor costs, and so much of the profits in the industry are coming from premium demand, long haul travel, and loyalty programs, which puts smaller airlines at a major disadvantage.
I have to give Frontier credit for the extent to which it’s evolving its business model, going from an ultra low cost carrier, to one that’s responding more to evolving consumer demand. Now, I think perhaps Frontier has been overcorrecting a bit, and has been deviating too far from its core proposition, but I guess time will tell how that plays out.
But think about this for a second. If someone told me in 2019 that Southwest would eliminate free checked bags, and then Frontier would be like “yo, can you believe how stingy Southwest is, come fly us, we’ll give you free bags,” I wouldn’t have believed you. But that’s exactly what we’re seeing.
I am somewhat amused by Frontier suggesting it’s possible that free checked bags could become permanent. It’s cute as a limited time promotion, but that just isn’t realistic, no matter how you slice it. Fundamentally, the US airline industry has a bit of a crisis when it comes to yields.
Even with their strong premium demand and long haul route networks, carriers like Delta and United are barely able to turn a profit on actually transporting passengers (in terms of cost per air seat mile vs. revenue per air seat mile). So while Frontier could very well get more passengers if it offers free checked bags, I just don’t see how that could ever be profitable for the airline. But hey, I appreciate the creative promotion nonetheless…
Bottom line
Frontier is trying to poach disgruntled Southwest flyers, which is kind of funny to think about, given Frontier’s historical business model. For a limited time, the airline is offering all passengers its Economy Bundle, which comes with extra perks. On top of that, for a limited time, it’s possible to get a free checked bag for travel over the coming months.
What do you make of Frontier’s free checked bag promotion?
The thing is that most people checking in bags are families with young children, who aren't really frontier's clientele. I suspect frontier's revenue from checked luggage was minimal to begin with and the airline decided that it wanted to attract different customers.
Looks to me like this could also be a Frontier merger overture to Southwest, as an opt out for Paul Singer and the mess that has been created.
Elliot exit strategy, Frontier growth prospect, Southwest reputation rehab? Ding Ding we have a winner! We all thought it could be JetBlue that might prosper. However, Indigo’s F9 has just one upped NK, B6, WN and Elliot all at once, even though this may have been by pure luck rather than any real strategic foresight.
It could also be a Frontier negotiating tactic with Spirit. Spirit rebuffed Frontier's merger offer while it was in bankruptcy. This move signals that Frontier has other outside options should Spirit continue to refuse to accept an offer.
WN is not exactly in a great position to fight back against the competitor assaults that are certain to come but, in the case, of F9, all WN has to do is point out that F9 in 2024 was dead last in both on-time and cancellation rates as well as involuntary denied boardings.
Airlines can change. "What have you done for me lately?" is more relevant than past mishaps. Many former Southwest loyalists are so enraged about Southwest breaking its implicit promise to never end the free checked bags policy that they might give an airline showing an effort to improve a chance.
We need a new word for “permanent” in airline language.
Smart marketing to insert themselves into the news cycle for some free advertising.
SWA frequent fliers are traumatized and working through the classic stages of grief. There is a strong anti-Big 3 vibe in that community. So at least some of that segment is ripe for picking if one can get their message through the clutter.
5 years out both airlines may well be toast.
But being publicly listed means living life in 30 to 90 day increments.
It's still a flying lawn chair with abysmal reliability, and only marginally fewer violent fights onboard than Spirit.
Doesn't make any sense and reeks of desperation. Frontier has a profit problem not a demand problem. Moreover, the business model is built on fees not fares and giving away the biggest source of fees/ancillary service makes no sense.
The typical Frontier flyer isn't a FF to the level of achieving an elite level. This isn't like a status match where an airline is trying to capture elites of another airline.
Maybe they're trying this as a loss-leader. Losing money today in the hope of building customer's faith in the future.
Which also makes no sense. Loss-leaders only work under a concept of brand loyalty, which has vanished among the flying public. People will take advantage today, and walk away tomorrow.
Perhaps Frontier management has had a change of heart and is "throwing the ball to where is going" after getting grilled by Senator Hawley in the Congressional hearing a few months ago. There is increasing bipartisan momentum to crack down on carry-on bag fees at the gate. Perhaps Frontier is trying to build good will before such a bill passes knowing that their former business model may become illegal anyway.
*to where the receiver is going*
Without robust credit card programs, the big 3 wouldn't survive. If Amex, Chase & Citi smarten up and drop the big 3, all hell would break loose. The fact that airlines still collect billions in annual baggage fees is hilarious.
Labor costs are high and only heading higher. It will all come full circle with a labor base that is primarily lazy, incompetent and ignorant.
Smarten up?
You think those big banks are being taken advantage of by airlines?
lol
Nope, but I do think they're overpaying just to get more "customers" in hopes they carry balances on their airline cards or to cross sell them.
Just from what I've heard in meetings and on earnings calls.