Frontier Group Holdings, Inc. (ULCC): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Frontier Group Holdings, Inc. (ULCC) revoluciona los viajes aéreos con su innovador modelo de negocio de operadores de costo ultra bajo, diseñado estratégicamente para interrumpir la economía de las aerolíneas tradicionales. Al elaborar meticulosamente un enfoque operativo delgado que prioriza la asequibilidad y la eficiencia, Frontier ha forjado una posición única del mercado que atrae a los viajeros con presupuesto conscientes de un presupuesto que busca soluciones de transporte rentables. Su dinámico lienzo de modelo de negocio revela una estrategia sofisticada que equilibra los precios agresivos, las asociaciones estratégicas y las experiencias digitales de los clientes, transformando cómo los estadounidenses perciben y acceden a los viajes aéreos nacionales.

Frontier Group Holdings, Inc. (ULCC) - Modelo de negocio: asociaciones clave

Fabricantes de aeronaves

La flota de Frontier consiste exclusivamente en aviones Airbus. A partir del tercer trimestre de 2023, Frontier opera 145 aviones Airbus A320 y A321Neo.

Tipo de aeronave	Número en la flota	Ordenar retraso
Airbus A320Neo	73	86
Airbus A321Neo	72	93

Proveedores de combustible

Frontier tiene acuerdos estratégicos de suministro de combustible con los principales proveedores de combustible de aviación.

Proveedor de combustible	Consumo anual de combustible	Duración del contrato
Servicios mundiales de combustible	180 millones de galones	3 años
Aviación de concha	120 millones de galones	2 años

Autoridades del aeropuerto

Frontier opera en 118 aeropuertos en todo Estados Unidos.

• Aeropuertos principales del centro: Aeropuerto Internacional de Denver
• Hubs secundarios: Aeropuerto Internacional de Orlando
• Aeropuertos operativos principales: Las Vegas, Miami, Filadelfia

Organizaciones de mantenimiento y reparación

Frontier se asocia con proveedores especializados de mantenimiento de aeronaves.

Socio de mantenimiento	Tipo de servicio	Costo de mantenimiento anual
AAR Corp	Mantenimiento pesado	$ 45 millones
EstandaryAero	Reparación de componentes	$ 22 millones

Plataformas de reserva de tarjetas de crédito y viajes

Frontier tiene asociaciones con múltiples plataformas financieras y de viaje.

• Socio de la tarjeta de crédito: Barclays Bank
• Plataformas de reserva: Expedia, kayak
• Socios del programa de fidelización: Travelport, Saber

Pareja	Participación de ingresos	Volumen de transacción anual
Tarjeta de crédito Barclays	2.5%	$ 180 millones
Reservas de Expedia	3.2%	$ 220 millones

Frontier Group Holdings, Inc. (ULCC) - Modelo de negocio: actividades clave

Operaciones de aerolíneas de pasajeros de bajo costo

Frontier Airlines opera un modelo de transportista de costo ultra bajo con 141 aviones Airbus a partir del tercer trimestre de 2023. La aerolínea atendió 145 destinos en los Estados Unidos, México y el Caribe.

Métrica de la flota	2023 datos
Aeronave total	141 avión Airbus
Destinos	145 rutas
Edad de flota promedio	5.4 años

Expansión de la red de ruta

En 2023, Frontier se centró en el desarrollo de rutas estratégicas con estrategias de expansión específicas.

• Se agregaron 21 nuevos destinos en 2023
• Mayor frecuencia en las rutas de alta demanda existentes
• Mercados dirigidos con paisajes de baja competición

Gestión de la flota de aeronaves

Frontier mantiene un Flota 100% Airbus con configuraciones de aeronaves estandarizadas.

Tipo de aeronave	Cantidad	Capacidad de pasajeros
Airbus A320	89	180 asientos
Airbus A321	52	230 asientos

Marketing digital y adquisición de clientes

Los canales digitales representaban el 85% de los ingresos de reserva de Frontier en 2023.

• Eficiencia de la plataforma de reserva en línea
• Campañas de publicidad digital dirigidas
• Estrategias de participación de aplicaciones móviles

Control de costos operativos eficientes

Frontier mantuvo un costo líder en la industria por milla de asiento disponible (CASM) de $ 0.0716 en 2023.

Métrico de costo	2023 rendimiento
Casma	$0.0716
Eficiencia de combustible	2.1 litros por pasajero por 100 km

Frontier Group Holdings, Inc. (ULCC) - Modelo de negocio: recursos clave

Flota de aviones Airbus A320 moderno

A partir del cuarto trimestre de 2023, Frontier Airlines opera una flota de 154 aviones familiares Airbus A320. La composición de la flota incluye:

Tipo de aeronave	Número de aviones	Edad promedio
Airbus A320	109	5.7 años
Airbus A321	45	4.3 años

Plataformas digitales de reserva y check-in

La infraestructura digital de Frontier incluye:

• Aplicación móvil con 2.8 millones de usuarios mensuales activos
• Manejo del sitio web aproximadamente el 65% del total de reservas
• Procesamiento de la plataforma de check-in en línea 82% de los registros de pasajeros

Fuerza laboral hábil

Estadísticas de la fuerza laboral a partir de 2023:

Categoría de empleado	Total de empleados
Total de empleados	6,200
Pilotos	1,100
Azafata	2,300

Reconocimiento de marca

Métricas de posicionamiento de marca:

• Cuota de mercado en el segmento de operadores de costo ultra bajo: 14.3%
• Puntuación del promotor neto: 42
• Seguidores de redes sociales: 1.5 millones

Ubicaciones estratégicas del centro del aeropuerto

Ubicaciones del centro primario:

Ubicación del concentrador	Número de rutas	Volumen anual de pasajeros
Aeropuerto Internacional de Denver	120	3.2 millones
Aeropuerto Internacional de Orlando	85	2.1 millones
Aeropuerto internacional de Las Vegas McCarran	70	1.8 millones

Frontier Group Holdings, Inc. (ULCC) - Modelo de negocio: propuestas de valor

Precios de viajes aéreos extremadamente asequibles

A partir del cuarto trimestre de 2023, la tarifa base promedio de Frontier era de $ 56 por pasajero. La estrategia de bajo costo de la aerolínea se dirige a los viajeros sensibles a los precios con las siguientes métricas de precios:

Métrico de fijación de precios	Valor
Tarifa base promedio	$56
Tarifa promedio en comparación con los competidores	20-30% más bajo
Ingresos anuales de pasajeros	$ 2.78 mil millones (2023)

Red de ruta nacional extensa

Frontier opera a través de una red nacional integral con cobertura de ruta específica:

• Red de ruta total: 125 destinos
• Flota de aeronaves activa: 127 aviones familiares Airbus A320
• Regiones operativas primarias: occidental y sureste de los Estados Unidos

Opciones de boletos flexibles

Tipo de boleto	Gama de precios	Características
Economía básica	$39-$99	No se incluye equipaje
Opciones fronterizas	$79-$149	Incluye bolsa de mano

Experiencia de viaje sin lujos

Estrategia de reducción de costos: Modelo de servicio minimalista con estructura de fijación de precios desagradable.

• Ingresos auxiliares por pasajero: $ 62.47 (2023)
• Tarifas de equipaje: AVG $ 45 por pasajero
• Tarifas de selección de asiento: $ 10- $ 25

Conexiones directas de vuelo punto a punto

Métrico de red	Valor
Rutas directas totales	95
Distancia de vuelo promedio	1.200 millas
Frecuencia de vuelo semanal	1.600 vuelos

Frontier Group Holdings, Inc. (ULCC) - Modelo comercial: relaciones con los clientes

Plataformas digitales de autoservicio

Frontier Airlines ofrece una plataforma digital integral con las siguientes características:

• Aplicación móvil disponible en plataformas iOS y Android
• Sistema de reserva en línea en frontier.com
• Funcionalidad de check-in

Métrica de plataforma digital	2023 datos
Descargas de aplicaciones móviles	4.2 millones de usuarios activos
Porcentaje de reserva en línea	87% del total de reservas

Canales de atención al cliente opcionales

Frontier ofrece múltiples opciones de atención al cliente:

• Soporte telefónico 24/7
• Chat en vivo en el sitio web
• Servicio al cliente de las redes sociales
• Soporte por correo electrónico

Canal de soporte	Tiempo de respuesta promedio
Soporte telefónico	12 minutos
Chat en vivo	7 minutos

Programa de lealtad (millas fronterizas)

Detalles del programa de fidelización de millas fronterizas:

• Base de membresía: 2.5 millones de miembros activos
• Millas de vencimiento: 6 meses de inactividad
• Opciones de redención en más de 100 destinos

Métrica del programa de fidelización	2023 datos
Millas promedio ganadas por miembro	5,200 millas anualmente
Tasa de redención	42% de los miembros

Modelo de precios transparentes

Estrategia base de precios de tarifas con una estructura de tarifas adicional clara:

• Precios de boletos desagradables
• Servicios de complemento opcionales
• No hay política de tarifas ocultas

Componente de precios	Costo promedio
Tarifa base	$49
Tarifas adicionales promedio	$ 35- $ 45 por reserva

Comunicación digital personalizada

Estrategias de participación digital específicas:

• Marketing por correo electrónico personalizado
• Notificaciones de aplicaciones móviles personalizadas
• Orientación conductual

Métrica de comunicación digital	2023 rendimiento
Tarifa de apertura de correo electrónico	22.5%
Conversión de oferta personalizada	14.3%

Frontier Group Holdings, Inc. (ULCC) - Modelo de negocio: canales

Sitio web de la empresa

El sitio web de Frontier Airlines (www.flyfrontier.com) procesó 24.7 millones de visitantes únicos en 2022. Los ingresos por reservas en línea alcanzaron los $ 1.2 mil millones en el mismo año. El sitio web admite compras directas de boletos, selección de asientos, gestión de equipaje y servicios de check-in.

Métrico del sitio web	Datos 2022
Visitantes únicos	24.7 millones
Ingresos de reserva en línea	$ 1.2 mil millones

Aplicación móvil

La aplicación móvil de Frontier logró 5.2 millones de descargas en 2022. La aplicación es compatible con Capacidades de reserva móvil 100% y generó el 37% del total de reservas digitales.

Módulo de aplicación móvil	Datos 2022
Descargas totales	5.2 millones
Porcentaje de reserva digital	37%

Plataformas de reserva de viajes en línea

Frontier se asocia con múltiples agencias de viajes en línea (OTA), que incluyen:

• Expedia
• Kayac
• Orbitz
• Priceline

Las ventas de OTA representaron el 22% de los ingresos por boletos totales en 2022, por valor de aproximadamente $ 480 millones.

Centros de servicio al cliente

Frontier opera 3 centros de llamadas de servicio al cliente primario ubicados en:

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

Volumen anual de llamadas: 4.6 millones de interacciones con el cliente en 2022.

Plataformas de marketing en redes sociales

El alcance de las redes sociales de Frontier a partir de 2022:

Plataforma	Seguidores
Facebook	1.2 millones
Gorjeo	380,000
Instagram	450,000

El marketing en redes sociales generó aproximadamente $ 65 millones en ingresos directos e indirectos en 2022.

Frontier Group Holdings, Inc. (ULCC) - Modelo de negocio: segmentos de clientes

Viajeros conscientes del presupuesto

A partir del cuarto trimestre de 2023, Frontier Airlines se dirige a los viajeros que buscan opciones de pasajes aéreos de bajo costo. El precio promedio del boleto para la frontera es de $ 45- $ 75 por vuelo de ida.

Características del segmento de clientes	Porcentaje
Rango de ingresos por debajo de $ 50,000	62%
Edad 18-35	47%
Buscadores de descuento frecuentes	73%

Viajeros de ocio y vacaciones

Frontier sirve aproximadamente 145 destinos en los mercados de los Estados Unidos, México y el Caribe.

• Temporadas de viajes pico: verano (junio-agosto)
• Viajes de ocio de fin de semana: 38% del volumen total de pasajeros
• Duración promedio de viaje de vacaciones: 4-7 días

Demográfico joven y sensible a los precios

Demográfico objetivo de 18 a 35 años representa el 47% de la base de clientes de Frontier, con Ingreso anual promedio de $ 42,000.

Participantes del mercado de viajes nacionales

Segmento de mercado	Cuota de mercado
Rutas nacionales	3.2%
Segmento portador de bajo costo	8.5%

Volantes ocasionales y frecuentes

Desglose del cliente basado en la frecuencia de vuelo:

• Viajeros ocasionales (1-2 vuelos/año): 65%
• Viajeros frecuentes (4-6 vuelos/año): 22%
• Viajeros de negocios (más de 7 vuelos/año): 13%

Frontier Group Holdings, Inc. (ULCC) - Modelo de negocio: Estructura de costos

Gastos de combustible

Para el año fiscal 2023, Frontier Airlines reportó gastos de combustible totales de $ 503.7 millones. El costo de combustible de la aerolínea por galón promedió $ 2.67 en 2023.

Año fiscal	Gastos totales de combustible	Costo promedio de combustible por galón
2023	$ 503.7 millones	$2.67

Arrendamiento y mantenimiento de aeronaves

En 2023, los costos de mantenimiento y arrendamiento de la flota de aviones de Frontier totalizaron aproximadamente $ 312.5 millones.

• Tamaño de la flota: 127 aviones familiares Airbus A320
• Costo promedio de arrendamiento de aeronaves por mes: $ 250,000 a $ 350,000
• Costo de mantenimiento anual por aeronave: aproximadamente $ 1.2 millones

Costos de personal y trabajo

Frontier reportó gastos totales de personal de $ 542.6 millones para el año fiscal 2023.

Categoría de empleado	Salario anual promedio
Pilotos	$186,870
Azafata	$56,230
Personal de tierra	$45,740

Tarifas de aterrizaje del aeropuerto y operaciones

Los gastos operativos relacionados con el aeropuerto para Frontier en 2023 ascendieron a $ 215.3 millones.

• Tarifa promedio de aterrizaje por aeronave: $ 650
• Costos operativos anuales del aeropuerto: $ 215.3 millones
• Número de aeropuertos servidos: 120 destinos

Gastos de marketing y adquisición de clientes

Frontier invirtió $ 87.4 millones en estrategias de marketing y adquisición de clientes durante 2023.

Canal de marketing	Asignación de gastos
Marketing digital	$ 42.1 millones
Publicidad tradicional	$ 25.6 millones
Campañas promocionales	$ 19.7 millones

Frontier Group Holdings, Inc. (ULCC) - Modelo comercial: flujos de ingresos

Venta de entradas

Frontier Airlines reportó ingresos operativos totales de $ 2.6 mil millones para el año fiscal 2022.

Categoría de ingresos	Cantidad (2022)
Ingresos de boletos de pasajeros	$ 1.85 mil millones

Tarifas de servicio auxiliar

Los ingresos auxiliares son un componente crítico del modelo de negocio de Frontier.

Tipo de ingresos auxiliares	Porcentaje de ingresos totales
Ingresos auxiliares totales	$ 750 millones (28.8% de los ingresos totales)

Cargos de equipaje

Frontier genera ingresos significativos de las tarifas de equipaje.

• Tarifa de bolsa de mano estándar: $ 35- $ 60
• Tarifa de la bolsa revisada: $ 30- $ 55

Tarifas de selección de asiento

La selección de asientos es otro flujo de ingresos clave para Frontier.

Tipo de selección de asiento	Gama de precios
Asiento estándar	$5-$25
Asiento estirado	$20-$50

Ventas de servicios en vuelo

Los servicios adicionales en vuelo contribuyen a la generación de ingresos.

• Ventas a bordo de alimentos y bebidas: aproximadamente $ 10- $ 15 por pasajero
• Acceso a Wi-Fi: $ 3- $ 8 por vuelo

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.