Skift Take
Frontier is slashing capacity from over-served markets such as Las Vegas and Orlando as it chases higher-spending passengers.
Times are tough for America’s low-cost carriers, but Frontier says it has a solution. It published a three-point plan Tuesday that it hopes will deliver a huge surge in revenue over the next two years.
First up is a network overhaul. Squeezed profit margins and oversupply in once-lucrative leisure markets have left the country's budget airlines scrambling to regain profitability. Frontier cited Las Vegas and Orlando as two prime examples during a call with analysts.
Total domestic capacity (by available seat miles) grew 4.4% last year compared to 2019. Las Vegas and Orlando markets increased by 20% during the same period - and they are still growing. Frontier thinks chasing these over-saturated routes with low margins is a fool's errand. Instead, the company is pivoting its efforts towards better-yielding destinations.
This summer, Frontier will cut its Las Vegas and Orlando footprint from 34% of capacity in 2023 to just 23%. The planes and crews will be