Frontier Group Holdings, Inc. (ULCC): Business Model Canvas

Frontier Group Holdings, Inc. (ULCC) revolutioniert den Flugverkehr mit seinem innovativen Ultra-Low-Cost-Carrier-Geschäftsmodell, das strategisch darauf ausgelegt ist, die traditionelle Wirtschaftlichkeit von Fluggesellschaften zu revolutionieren. Durch die sorgfältige Ausarbeitung eines schlanken Betriebsansatzes, bei dem Erschwinglichkeit und Effizienz im Vordergrund stehen, hat sich Frontier eine einzigartige Marktposition erarbeitet, die preisbewusste Reisende anzieht, die nach kostengünstigen Transportlösungen suchen. Ihr dynamisches Geschäftsmodell offenbart eine ausgeklügelte Strategie, die aggressive Preise, strategische Partnerschaften und digitale Kundenerlebnisse in Einklang bringt und so die Art und Weise verändert, wie Amerikaner Inlandsflugreisen wahrnehmen und darauf zugreifen.

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Wichtige Partnerschaften

Flugzeughersteller

Die Flotte von Frontier besteht ausschließlich aus Airbus-Flugzeugen. Ab dem dritten Quartal 2023 betreibt Frontier 145 Airbus A320- und A321neo-Flugzeuge.

Flugzeugtyp	Nummer in der Flotte	Auftragsbestand
Airbus A320neo	73	86
Airbus A321neo	72	93

Kraftstofflieferanten

Frontier verfügt über strategische Treibstofflieferverträge mit großen Flugtreibstoffanbietern.

Kraftstofflieferant	Jährlicher Kraftstoffverbrauch	Vertragsdauer
World Fuel Services	180 Millionen Gallonen	3 Jahre
Shell Aviation	120 Millionen Gallonen	2 Jahre

Flughafenbehörden

Frontier ist an 118 Flughäfen in den Vereinigten Staaten tätig.

• Hauptflughäfen: Denver International Airport
• Sekundäre Hubs: Orlando International Airport
• Wichtige operative Flughäfen: Las Vegas, Miami, Philadelphia

Wartungs- und Reparaturorganisationen

Frontier arbeitet mit spezialisierten Flugzeugwartungsanbietern zusammen.

Wartungspartner	Servicetyp	Jährliche Wartungskosten
AAR Corp	Schwere Wartung	45 Millionen Dollar
StandardAero	Komponentenreparatur	22 Millionen Dollar

Kreditkarten- und Reisebuchungsplattformen

Frontier unterhält Partnerschaften mit mehreren Finanz- und Reiseplattformen.

• Kreditkartenpartner: Barclays Bank
• Buchungsplattformen: Expedia, Kayak
• Partner des Treueprogramms: Travelport, Sabre

Partner	Umsatzbeteiligung	Jährliches Transaktionsvolumen
Barclays-Kreditkarte	2.5%	180 Millionen Dollar
Expedia-Buchungen	3.2%	220 Millionen Dollar

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Hauptaktivitäten

Kostengünstiger Passagierflugbetrieb

Frontier Airlines betreibt ab dem dritten Quartal 2023 ein Ultra-Low-Cost-Carrier-Modell mit 141 Airbus-Flugzeugen. Die Fluggesellschaft bedient 145 Ziele in den Vereinigten Staaten, Mexiko und der Karibik.

Flottenmetrik	Daten für 2023
Insgesamt Flugzeuge	141 Airbus-Flugzeuge
Reiseziele	145 Routen
Durchschnittliches Flottenalter	5,4 Jahre

Erweiterung des Streckennetzes

Im Jahr 2023 konzentrierte sich Frontier auf die strategische Routenentwicklung mit spezifischen Expansionsstrategien.

• Im Jahr 2023 wurden 21 neue Ziele hinzugefügt
• Erhöhte Frequenz auf bestehenden stark nachgefragten Strecken
• Gezielte Märkte mit wettbewerbsarmen Landschaften

Flugzeugflottenmanagement

Frontier unterhält eine 100 % Airbus-Flotte mit standardisierten Flugzeugkonfigurationen.

Flugzeugtyp	Menge	Passagierkapazität
Airbus A320	89	180 Sitzplätze
Airbus A321	52	230 Sitzplätze

Digitales Marketing und Kundenakquise

Digitale Kanäle machten im Jahr 2023 85 % des Buchungsumsatzes von Frontier aus.

• Effizienz der Online-Buchungsplattform
• Gezielte digitale Werbekampagnen
• Strategien zur Einbindung mobiler Apps

Effiziente Betriebskostenkontrolle

Frontier erzielte im Jahr 2023 branchenführende Kosten pro verfügbarer Sitzmeile (CASM) von 0,0716 US-Dollar.

Kostenmetrik	Leistung 2023
CASM	$0.0716
Kraftstoffeffizienz	2,1 Liter pro Passagier und 100 km

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Schlüsselressourcen

Moderne Airbus A320-Flugzeugflotte

Ab dem vierten Quartal 2023 betreibt Frontier Airlines eine Flotte von 154 Flugzeugen der Airbus A320-Familie. Die Flottenzusammensetzung umfasst:

Flugzeugtyp	Anzahl der Flugzeuge	Durchschnittsalter
Airbus A320	109	5,7 Jahre
Airbus A321	45	4,3 Jahre

Digitale Buchungs- und Check-in-Plattformen

Die digitale Infrastruktur von Frontier umfasst:

• Mobile App mit 2,8 Millionen aktiven monatlichen Nutzern
• Die Website wickelt etwa 65 % aller Buchungen ab
• Online-Check-in-Plattform, die 82 % der Passagier-Check-ins abwickelt

Qualifizierte Arbeitskräfte

Personalstatistik Stand 2023:

Mitarbeiterkategorie	Gesamtzahl der Mitarbeiter
Gesamtzahl der Mitarbeiter	6,200
Piloten	1,100
Flugbegleiter	2,300

Markenbekanntheit

Kennzahlen zur Markenpositionierung:

• Marktanteil im Ultra-Low-Cost-Carrier-Segment: 14,3 %
• Net Promoter Score: 42
• Social-Media-Follower: 1,5 Millionen

Strategische Flughafen-Hub-Standorte

Primäre Hub-Standorte:

Hub-Standort	Anzahl der Routen	Jährliches Passagieraufkommen
Internationaler Flughafen Denver	120	3,2 Millionen
Internationaler Flughafen Orlando	85	2,1 Millionen
Internationaler Flughafen Las Vegas McCarran	70	1,8 Millionen

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Wertversprechen

Äußerst erschwingliche Preise für Flugreisen

Im vierten Quartal 2023 betrug der durchschnittliche Basistarif von Frontier 56 US-Dollar pro Passagier. Die Low-Cost-Strategie der Fluggesellschaft richtet sich mit folgenden Preiskennzahlen an preisbewusste Reisende:

Preismetrik	Wert
Durchschnittlicher Grundpreis	$56
Durchschnittspreis im Vergleich zu Mitbewerbern	20-30 % niedriger
Jährlicher Passagierumsatz	2,78 Milliarden US-Dollar (2023)

Umfangreiches Inlandsstreckennetz

Frontier operiert über ein umfassendes inländisches Netzwerk mit spezifischer Streckenabdeckung:

• Gesamtes Streckennetz: 125 Ziele
• Aktive Flugzeugflotte: 127 Flugzeuge der Airbus A320-Familie
• Hauptbetriebsregionen: Westen und Südosten der USA

Flexible Ticketoptionen

Tickettyp	Preisspanne	Funktionen
Grundökonomie	$39-$99	Kein inbegriffenes Gepäck
Grenzoptionen	$79-$149	Inklusive Handgepäcktasche

Reiseerlebnis ohne Schnickschnack

Kostensenkungsstrategie: Minimalistisches Servicemodell mit entbündelter Preisstruktur.

• Nebeneinnahmen pro Passagier: 62,47 $ (2023)
• Gepäckgebühren: Durchschnittlich 45 $ pro Passagier
• Gebühren für die Sitzplatzauswahl: 10–25 $

Direkte Punkt-zu-Punkt-Flugverbindungen

Netzwerkmetrik	Wert
Gesamtzahl der direkten Routen	95
Durchschnittliche Flugentfernung	1.200 Meilen
Wöchentliche Flugfrequenz	1.600 Flüge

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Kundenbeziehungen

Digitale Self-Service-Plattformen

Frontier Airlines bietet eine umfassende digitale Plattform mit folgenden Funktionen:

• Mobile App verfügbar auf iOS- und Android-Plattformen
• Online-Buchungssystem bei Frontier.com
• Web-Check-in-Funktion

Digitale Plattformmetrik	Daten für 2023
Mobile App-Downloads	4,2 Millionen aktive Benutzer
Online-Buchungsprozentsatz	87 % aller Buchungen

Optionale Kundensupportkanäle

Frontier bietet mehrere Kundensupportoptionen:

• Telefonsupport rund um die Uhr
• Live-Chat auf der Website
• Kundenservice über soziale Medien
• E-Mail-Support

Support-Kanal	Durchschnittliche Reaktionszeit
Telefonsupport	12 Minuten
Live-Chat	7 Minuten

Treueprogramm (FRONTIER-Meilen)

Details zum FRONTIER Miles-Treueprogramm:

• Mitgliederbasis: 2,5 Millionen aktive Mitglieder
• Ablauf der Meilen: 6 Monate Inaktivität
• Einlösungsoptionen an über 100 Reisezielen

Metrik des Treueprogramms	Daten für 2023
Durchschnittlich gesammelte Meilen pro Mitglied	5.200 Meilen pro Jahr
Rückzahlungsrate	42 % der Mitglieder

Transparentes Preismodell

Preisstrategie für den Grundpreis mit klarer zusätzlicher Gebührenstruktur:

• Entbündelte Ticketpreise
• Optionale Zusatzleistungen
• Keine versteckten Gebührenpolitik

Preiskomponente	Durchschnittliche Kosten
Grundpreis	$49
Durchschnittliche Zusatzgebühren	35–45 $ pro Buchung

Personalisierte digitale Kommunikation

Gezielte digitale Engagement-Strategien:

• Personalisiertes E-Mail-Marketing
• Angepasste Benachrichtigungen für mobile Apps
• Verhaltens-Targeting

Digitale Kommunikationsmetrik	Leistung 2023
E-Mail-Öffnungsrate	22.5%
Personalisierte Angebotsumwandlung	14.3%

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Kanäle

Unternehmenswebsite

Die Website von Frontier Airlines (www.flyfrontier.com) verzeichnete im Jahr 2022 24,7 Millionen einzelne Besucher. Der Online-Buchungsumsatz erreichte im selben Jahr 1,2 Milliarden US-Dollar. Die Website unterstützt direkte Ticketkäufe, Sitzplatzauswahl, Gepäckmanagement und Check-in-Dienste.

Website-Metrik	Daten für 2022
Einzigartige Besucher	24,7 Millionen
Einnahmen aus Online-Buchungen	1,2 Milliarden US-Dollar

Mobile Anwendung

Die mobile App von Frontier erreichte im Jahr 2022 5,2 Millionen Downloads. Die App unterstützt 100 % mobile Buchungsmöglichkeiten und generierte 37 % aller digitalen Buchungen.

Metrik für mobile Apps	Daten für 2022
Gesamtzahl der Downloads	5,2 Millionen
Prozentsatz digitaler Buchungen	37%

Online-Reisebuchungsplattformen

Frontier arbeitet mit mehreren Online-Reisebüros (OTAs) zusammen, darunter:

• Expedia
• Kajak
• Orbitz
• Preislinie

OTA-Verkäufe machten im Jahr 2022 22 % des gesamten Ticketumsatzes aus und beliefen sich auf etwa 480 Millionen US-Dollar.

Kundendienstzentren

Frontier betreibt drei primäre Kundendienst-Callcenter an folgenden Standorten:

• Denver, Colorado
• Orlando, Florida
• Phoenix, Arizona

Jährliches Anrufvolumen: 4,6 Millionen Kundeninteraktionen im Jahr 2022.

Social-Media-Marketingplattformen

Die Social-Media-Reichweite von Frontier ab 2022:

Plattform	Anhänger
Facebook	1,2 Millionen
Twitter	380,000
Instagram	450,000

Social-Media-Marketing generierte im Jahr 2022 schätzungsweise 65 Millionen US-Dollar an direkten und indirekten Einnahmen.

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Kundensegmente

Budgetbewusste Reisende

Ab dem vierten Quartal 2023 richtet sich Frontier Airlines an Reisende, die kostengünstige Flugoptionen suchen. Der durchschnittliche Ticketpreis für Frontier liegt zwischen 45 und 75 US-Dollar pro Hinflug.

Merkmale des Kundensegments	Prozentsatz
Einkommensbereich unter 50.000 US-Dollar	62%
Alter 18–35	47%
Häufige Rabattsuchende	73%

Freizeit- und Urlaubsreisende

Frontier bedient etwa 145 Ziele in den Märkten der Vereinigten Staaten, Mexikos und der Karibik.

• Hauptreisezeit: Sommer (Juni-August)
• Freizeitreisen am Wochenende: 38 % des gesamten Passagieraufkommens
• Durchschnittliche Dauer einer Urlaubsreise: 4-7 Tage

Junge und preissensible Bevölkerungsgruppe

Die Zielgruppe im Alter von 18 bis 35 Jahren macht 47 % des Kundenstamms von Frontier aus durchschnittliches Jahreseinkommen von 42.000 US-Dollar.

Teilnehmer des inländischen Reisemarktes

Marktsegment	Marktanteil
Inlandsstrecken	3.2%
Low-Cost-Carrier-Segment	8.5%

Gelegenheits- und Vielflieger

Kundenaufschlüsselung nach Flugfrequenz:

• Gelegenheitsreisende (1-2 Flüge/Jahr): 65 %
• Vielreisende (4-6 Flüge/Jahr): 22 %
• Geschäftsreisende (7+ Flüge/Jahr): 13 %

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Kostenstruktur

Treibstoffkosten

Für das Geschäftsjahr 2023 meldete Frontier Airlines Gesamttreibstoffkosten in Höhe von 503,7 Millionen US-Dollar. Die Treibstoffkosten der Fluggesellschaft pro Gallone lagen im Jahr 2023 bei durchschnittlich 2,67 US-Dollar.

Geschäftsjahr	Gesamte Treibstoffkosten	Durchschnittliche Kraftstoffkosten pro Gallone
2023	503,7 Millionen US-Dollar	$2.67

Flugzeugleasing und -wartung

Im Jahr 2023 beliefen sich die Wartungs- und Leasingkosten der Flugzeugflotte von Frontier auf etwa 312,5 Millionen US-Dollar.

• Flottengröße: 127 Flugzeuge der Airbus A320-Familie
• Durchschnittliche Flugzeugleasingkosten pro Monat: 250.000 bis 350.000 US-Dollar
• Jährliche Wartungskosten pro Flugzeug: Ungefähr 1,2 Millionen US-Dollar

Personal- und Arbeitskosten

Frontier meldete für das Geschäftsjahr 2023 einen Personalaufwand von insgesamt 542,6 Millionen US-Dollar.

Mitarbeiterkategorie	Durchschnittliches Jahresgehalt
Piloten	$186,870
Flugbegleiter	$56,230
Bodenpersonal	$45,740

Lande- und Betriebsgebühren am Flughafen

Die flughafenbezogenen Betriebskosten für Frontier beliefen sich im Jahr 2023 auf 215,3 Millionen US-Dollar.

• Durchschnittliche Landegebühr pro Flugzeug: 650 $
• Jährliche Flughafenbetriebskosten: 215,3 Millionen US-Dollar
• Anzahl der angeflogenen Flughäfen: 120 Ziele

Aufwendungen für Marketing und Kundenakquise

Frontier investierte im Jahr 2023 87,4 Millionen US-Dollar in Marketing- und Kundenakquisestrategien.

Marketingkanal	Kostenzuordnung
Digitales Marketing	42,1 Millionen US-Dollar
Traditionelle Werbung	25,6 Millionen US-Dollar
Werbekampagnen	19,7 Millionen US-Dollar

Frontier Group Holdings, Inc. (ULCC) – Geschäftsmodell: Einnahmequellen

Ticketverkauf

Frontier Airlines meldete für das Geschäftsjahr 2022 einen Gesamtbetriebsumsatz von 2,6 Milliarden US-Dollar.

Umsatzkategorie	Betrag (2022)
Einnahmen aus Passagiertickets	1,85 Milliarden US-Dollar

Gebühren für Nebenleistungen

Nebeneinnahmen sind ein entscheidender Bestandteil des Geschäftsmodells von Frontier.

Art der Nebeneinnahmen	Prozentsatz des Gesamtumsatzes
Gesamte Nebeneinnahmen	750 Millionen US-Dollar (28,8 % des Gesamtumsatzes)

Gepäckgebühren

Frontier generiert erhebliche Einnahmen aus Gepäckgebühren.

• Standardgebühr für Handgepäck: 35–60 $
• Gebühr für aufgegebenes Gepäck: 30–55 $

Gebühren für die Sitzplatzauswahl

Die Sitzplatzauswahl ist eine weitere wichtige Einnahmequelle für Frontier.

Sitzplatzauswahltyp	Preisspanne
Standardsitz	$5-$25
Stretchsitz	$20-$50

Verkauf von Bordservices

Zusätzliche Bordservices tragen zur Umsatzgenerierung bei.

• Verkauf von Speisen und Getränken an Bord: Ungefähr 10 bis 15 US-Dollar pro Passagier
• WLAN-Zugang: 3–8 $ pro Flug

Frontier Group Holdings, Inc. (ULCC) - Canvas Business Model: Value Propositions

Frontier Group Holdings, Inc. (ULCC) centers its value proposition on delivering the lowest possible base fare, which is the foundation of its ultra-low-cost carrier model.

For price-sensitive travelers, the core offering is the base fare, which supports operational efficiency metrics. For instance, in the third quarter of 2025, Frontier Group Holdings achieved a load factor of 81%. The revenue per passenger for that same quarter was reported at $106. The airline emphasizes disciplined capacity deployment to maintain this low-cost structure, evidenced by a stage-adjusted Revenue per Available Seat Mile (RASM) improving to 8.76 cents in Q3 2025, a 2% increase year-over-year.

The unbundled pricing model is the mechanism that allows Frontier Group Holdings to offer those low base fares. You pay only for what you select, which means everything beyond the seat and one personal item is an optional, revenue-generating add-on. This strategy is clearly reflected in the growth of its ancillary revenue streams, a key part of the overall value capture.

Here's a look at the financial performance supporting the unbundling strategy as of late 2025:

Metric	Q3 2025 Value	Year-over-Year Change
Revenue per Passenger	$106	Up 1%
Loyalty Revenue per Passenger	$7.50	Up 40%
Stage-Adjusted RASM	8.76 cents	Up 2%
Non-Fuel CASM (Q2 2025)	7.50 cents	Up from 6.24 cents (Q2 2024)

This structure means that while the base fare is low, the total spend is highly variable based on customer choices for extras like seat selection, baggage, and priority services. The airline is actively enhancing its loyalty program to drive more high-margin ancillary spend.

Frontier Group Holdings is introducing new premium seating options in late 2025 to capture higher revenue from travelers willing to pay for comfort, moving beyond the purely no-frills proposition. This is a direct response to market trends where customers seek more premium experiences.

• New 'First Class' Seating: Debuting in late 2025, these are described as 'luxurious' and 'spacious' seats located in the first two rows in a two-by-two configuration.
• UpFront Plus Seating: Introduced earlier, this option guarantees an empty middle seat and extra legroom, with upgrades starting at $49.
• Elite Upgrade Path: Members achieving Elite Gold status or higher are eligible for free upgrades to the new First Class seats, subject to availability.

The GoWild All-You-Can-Fly Pass offers a unique subscription value proposition for highly flexible, frequent travelers, essentially selling access to the network for a flat fee plus mandatory charges. The Annual Pass for the 2025-2026 period was promoted at a discounted price of $299, down from the regular $599 renewal cost.

The economics for the pass holder involve paying a nominal airfare of $0.01 per segment, plus government-mandated taxes and fees, which start at $14.90 per segment. This pass is designed to fill seats that would otherwise go unsold, but it comes with significant restrictions that you must factor in for this value to hold true.

The core restrictions defining the GoWild Pass value proposition include:

• Booking Window: Domestic flights can only be secured the day before departure (within 24 hours).
• International Booking: Requires a 10-day advance booking window.
• Exclusions: The pass does not cover baggage, seat selections, or other add-ons, which must be purchased separately.
• Blackout Dates: Travel is restricted on numerous high-demand days, such as July 3-7 and November 25, 26, 29-30 in 2025.
• Status Perks: Pass holders receive Silver Status, which includes benefits like free seat selection and waived flight change fees (for changes made 7+ days out).

Finance: draft 13-week cash view by Friday.

Frontier Group Holdings, Inc. (ULCC) - Canvas Business Model: Customer Relationships

Frontier Group Holdings, Inc. (ULCC) structures its customer relationships around a high degree of digital self-service, programmatic rewards for frequent flyers, and a clear transactional boundary for its core, lowest-priced offerings.

Largely automated, low-touch digital self-service via app and website

The airline drives customers toward digital channels for core interactions. Frontier Group Holdings planned to launch a redesigned mobile app for Android, followed by iOS, and redesign its website later in 2025, reinforcing this digital focus. The overall model supports a low-touch interaction, which is critical as the airline manages capacity discipline, such as reducing scheduled capacity in the second quarter of 2025 to maximize liquidity. The load factor improved to 79.3% in the second quarter of 2025, indicating better seat productivity achieved through these managed interactions. Total revenue per passenger in Q2 2025 remained flat at $109 year-over-year. The market for self-service systems, which these tools fall under, was projected to reach approximately $28,400 million by 2025.

Programmatic loyalty through FRONTIER Miles and GoWild Pass

The FRONTIER Miles program is central to driving engagement and ancillary spend, operating on a revenue-based earn structure. The airline offers the highest earn per dollar spent in the industry for non-elite members. Frontier Group Holdings aims to generate $10 in loyalty-related revenue per passenger by 2028. Co-brand loyalty revenue per passenger saw an increase of over 40% year-over-year in the second quarter of 2025. The structure of the program is detailed below:

Status Tier	Qualifying Miles Required (Annual)	Earn Rate (Miles per $1 Spent)	Key 2025 Benefit Enhancement
Non-Elite	0	10x	Miles redeemable for bundled options (Basic, Economy, Premium, Business) starting mid-2025.
Silver	10,000	12x	Continues to enjoy existing benefits like free advance seat assignments and priority boarding.
Gold	20,000	14x	Free carry-on and checked bags; access to complimentary seat upgrades, including new First Class seats.
Platinum	50,000	16x	Unlimited free companion travel starting mid-2025; free pet travel.
Diamond	100,000	16x	Unlimited free companion travel starting mid-2025; free pet travel.

The airline also aggressively targets competitor loyalty members. For a limited time, members of rival programs could purchase Frontier Elite Gold status for $69, which grants them 14x miles earned per dollar spent.

New enhanced customer support for elite status members and near-flight issues

While the base service is low-touch, premium tiers receive targeted support enhancements. Elite Gold status, whether earned or purchased for $69, includes priority customer care. Elite Gold members and above receive complimentary upgrades to premium seating options, including the new First Class seating debuting in late 2025. Platinum and Diamond Elite members gain access to unlimited free companion travel starting mid-2025. The airline is focused on enhancing the experience for customers seeking more space, with the UpFront Plus seating option achieving over 70% sold load factors within six months of its launch in late 2024.

Transactional focus with minimal post-sale interaction for base fares

The relationship for the lowest-fare customer is highly transactional, with clear financial consequences for changes or failure to travel. Frontier Group Holdings eliminated change fees for Blue, Blue Plus, Blue Extra, and Mint fares, meaning the only cost is the resulting difference in airfare. However, the Blue Basic fare carries specific administrative charges for voluntary cancellation. The cancellation fee for North American routes on a Blue Basic fare is $100 per person, while international segments incur a $200 per person fee. If the original Blue Basic segment price is less than the fee, the entire airfare is forfeited. A failure to notify the airline of a missed flight segment (a no-show) results in the complete forfeiture of the entire monetary worth paid for that segment, and all subsequent unused segments on the booking are automatically canceled. The airline reported a net loss of $70 million in the second quarter of 2025, underscoring the need for disciplined revenue management, even on base fares.

Frontier Group Holdings, Inc. (ULCC) - Canvas Business Model: Channels

You're looking at how Frontier Group Holdings, Inc. gets its product-the seat on the plane-into the hands of the customer as of late 2025. The channel strategy is heavily weighted toward direct digital sales, supported by a high-margin loyalty product.

The primary channel remains the direct-to-consumer website, flyfrontier.com, and the mobile application, which is slated for a new launch shortly, with a new website following early next year.

The co-branded Mastercard is a critical channel for both loyalty engagement and direct sales promotion. Spending among holders of the co-branded Frontier World Mastercard saw a 19% year-over-year increase in the second quarter of 2025. This channel directly supports the loyalty revenue goal, which was $3 per passenger in the second quarter of 2025, with an expectation to reach $6 per passenger by the end of 2026, and a long-term target of $10 per passenger by the end of 2028.

While the direct digital channels are prioritized, Frontier is also leaning more heavily into travel management companies and corporate online booking tools with its BizFare offering, a distribution channel where they were historically more limited. Specific volume data for third-party Online Travel Agencies (OTAs) is not broken out, but the focus on direct and corporate tools suggests a strategic move away from high-commission third parties.

Airport ticket counters serve as the final point of sale for last-minute needs and in-person transactions, and this channel is included in the highest tier of the loyalty earning structure.

Here is a look at the key financial and loyalty metrics tied to these channels:

Metric Category	Channel/Program	Value/Amount (Late 2025 Context)
Financial Performance (YTD 9M 2025)	Total Operating Revenue	$2.73 billion
Financial Performance (Q2 2025)	Total Operating Revenue	$929 million
Financial Performance (Q1 2025)	Total Operating Revenues	$912 million
Financial Performance (FY 2024)	Total Operating Revenues	$3,775 million
Loyalty Revenue Target	Per Passenger (End of 2026 Goal)	$6
Loyalty Revenue Target	Per Passenger (End of 2028 Goal)	$10
Credit Card Spending Growth	Year-over-Year (Q2 2025)	19%
Credit Card Welcome Bonus Spend	To Earn 50,000 Miles	$500 within 90 days
Credit Card Annual Fee	Frontier World Mastercard	$99
Credit Card Elite Status Spend	To Earn Gold Status	$3,000 within 90 days
Credit Card Anniversary Benefit	$100 Flight Voucher Spend Threshold	$2,500
Credit Card APR (Variable)	Purchases	19.74% to 29.74%

The structure of the co-branded card heavily incentivizes direct engagement:

• Earn up to 15x Miles on eligible purchases at flyfrontier.com.
• Earn 5x Miles on flyfrontier.com purchases.
• Earn 3x Miles on eligible restaurant purchases.
• Earn 1x Miles on all other purchases.
• Cardmembers receive Two Free Checked Bags on Frontier Flights.
• Cardmembers receive priority boarding in Group 4.
• The card offers 0% introductory APR for 15 months on balance transfers made within 45 days of account opening.
• The card has no foreign transaction fees.

For the overall revenue outlook tied to these distribution efforts, Frontier Group Holdings forecasts an annual revenue growth rate of 8.16% for 2025-2027, which is forecast to beat the US Airlines industry average forecast of 3%.

Frontier Group Holdings, Inc. (ULCC) - Canvas Business Model: Customer Segments

Frontier Group Holdings, Inc. (ULCC) targets distinct customer groups through its ultra low-cost carrier (ULCC) model, emphasizing low fares done right.

Extreme price-sensitive leisure travelers and vacationers

This segment is the core focus, driven by the airline's low-fare structure across its network, including international leisure destinations in Mexico and the Caribbean.

• Total Operating Revenue for Q3 2025 was $886 million.
• Total Operating Revenue for Q1 2025 was a record $912 million.
• Forecasted annual revenue for 2025 is $3,729,000,000.
• Total Revenue per passenger in Q3 2025 was $106.
• Total Revenue per passenger in Q2 2025 was $109.
• Total Revenue per passenger in Q1 2025 was $116.

Visiting Friends and Relatives (VFR) market on non-stop routes

Frontier Airlines carves out success by targeting VFR passengers, particularly on international routes connecting the U.S. with the Caribbean and Mexico.

• International routes, such as San Juan to Santo Domingo, see strong demand serving both leisure and VFR markets.
• The San Juan to Santo Domingo route operates 79 monthly flights, providing nearly 16,500 seats per month.
• The Punta Cana to San Juan route operates 82 times per month, with over 17,800 available seats.
• The Cancun-Philadelphia route leads in total seat volume with 62 flights per month and over 14,400 available seats.

Budget-conscious small business travelers utilizing the new fare classes

This segment is addressed through the overall low-cost model and potentially through new fare class offerings, though specific data on small business adoption is not explicitly quantified in recent reports.

Metric	Q3 2025 Value	Q2 2025 Value
Fown Load Factor	80.7 percent	79.3 percent
Fleet Size (Aircraft)	Not specified	164

GoWild Pass subscribers seeking high-frequency, flexible travel

The GoWild! Pass is designed for high-frequency users seeking flexibility, with specific pricing and booking windows defining this segment's value proposition.

• The GoWild! All-You-Can-Fly Summer Pass for May 1 through Sept. 30, 2025, was priced at $399 for a limited time.
• A limited-time early access offer for the 2026-2027 GoWild! Pass was available for $299, normally $599.
• The GoWild! Pass for 2025-2026 was offered at $499, discounted from the typical $699.
• Each GoWild! booking incurs an airfare of $0.01 plus taxes, fees, and charges.
• Domestic flights require confirmed bookings the day before departure.
• International flights can be booked starting 10 days from departure.
• As of March 31, 2025, 82 percent of Frontier Group Holdings, Inc.'s fleet was comprised of the A320neo family aircraft.

Frontier Group Holdings, Inc. (ULCC) - Canvas Business Model: Cost Structure

Frontier Group Holdings, Inc. (ULCC) cost structure is heavily geared toward maintaining an ultra-low-cost base, driven by low Cost per Available Seat Mile (CASM) ex-fuel, which was reported at 7.24¢ in Q1 2025.

The major components of the cost structure, based on recent financial reporting periods, are detailed below:

Cost Component Category	Metric/Detail	Value/Amount	Period/Date
Operating Cost Efficiency	CASM (excluding fuel)	7.24 cents	Q1 2025
Fixed Cost Liability	Total Aircraft Operating Lease Liabilities	$4.3 billion	Q2 2025
Variable Cost - Fuel	Total Fuel Expense	$238 million	Q1 2025
Variable Cost - Fuel	Average Fuel Cost per Gallon	$2.55 per gallon	Q1 2025
Variable Cost - Fuel	Projected Average Fuel Cost per Gallon	$2.30 per gallon	Remainder of 2025
Total Operating Expenses	Total Operating Expenses (GAAP)	$958 million	Q1 2025
Total Operating Expenses	Total Operating Expenses (Excluding Fuel, non-GAAP)	$720 million	Q1 2025

A high proportion of fixed costs are tied up in aircraft financing, evidenced by the approximately $4.3 billion in lease liabilities as of Q2 2025. The entire fleet as of June 30, 2025, was financed through operating leases.

Major variable costs include fuel and airport fees. While fuel expense was $238 million in Q1 2025, the ex-fuel CASM increase in Q2 2025 was driven by higher station costs, which includes airport fees. The average fuel cost in Q1 2025 was $2.55 per gallon, with guidance projecting it down to approximately $2.30 per gallon for the remainder of 2025.

Significant labor costs are a structural consideration, given the status of collective bargaining agreements:

• 87% of the total workforce was union-represented as of June 30, 2025.
• Union contracts for 87% of staff were either open or in mediation as of June 30, 2025, heightening wage-inflation risk.

Frontier Group Holdings, Inc. (ULCC) - Canvas Business Model: Revenue Streams

You're looking at how Frontier Group Holdings, Inc. (ULCC) converts its Ultra-Low-Cost Carrier (ULCC) model into actual dollars, which is heavily dependent on getting you to pay for everything a legacy carrier might include. Here's the quick math on where the money came from in late 2025.

Total operating revenue for Frontier Group Holdings, Inc. in the second quarter of 2025 was reported at exactly $929 million. This figure came in on 2 percent lower capacity compared to the prior year period.

The core of the revenue generation is the separation of the base ticket from everything else. You pay the base fare, and then the ancillary revenue engine kicks in. For the three months ended June 30, 2025, the total revenue from passenger services was $898 million, which is the vast majority of the total operating revenue.

We can break down the components of that passenger revenue from Q2 2025 to see the unbundling in action. Honestly, the base ticket revenue is only one piece of the puzzle.

Revenue Component (Q2 2025)	Amount (Millions USD)
Fare Revenue (Base Ticket)	$348 million
Service Fees (General Ancillary)	$252 million
Baggage Fees	$186 million
Seat Selection Revenue	$81 million
Other Passenger-Related Income	$31 million

The focus on ancillary fees is key to the model. For the third quarter of 2025, the total ancillary revenue per passenger was $66.70. This is right in the ballpark of the expected average around $70 per passenger in 2025 that the strategy targets for fees like bags, seats, and bundles.

The GoWild All-You-Can-Fly Annual Pass is a major driver for future cash flow and customer lock-in, even if the per-flight revenue is minimal. The promotional price point for the 2025-2026 pass was set at $349 for early buyers, which is a significant discount from the typical renewal price of $699 mentioned in earlier iterations of the pass.

Revenue from the co-branded credit card program with Barclays also contributes, primarily through increased spending and loyalty engagement. For the second quarter of 2025, the introduction of new benefits, like the free unlimited companion travel for top-tier members, supported a 19 percent increase in cardholder spending over the corresponding 2024 quarter. This shows you the financial lift from that partnership.

Here are the key revenue stream metrics we are tracking:

• Total Operating Revenue (Q2 2025): $929 million
• Ancillary Revenue Per Passenger (Q3 2025): $66.70
• Promotional GoWild! Pass Price (Specified): $349
• Credit Card Spending Growth (YoY Q2 2025): 19 percent

Finance: draft 13-week cash view by Friday.