Frontier Group Holdings, Inc. (ULCC): Business Model Canvas [Jan-2025 Mise à jour]

Frontier Group Holdings, Inc. (ULCC) révolutionne les voyages en avion avec son modèle commercial de transporteur innovant ultra-low-coût, stratégiquement conçu pour perturber l'économie des compagnies aériennes traditionnelles. En fabriquant méticuleusement une approche opérationnelle maigre qui privilégie l'abordabilité et l'efficacité, Frontier a creusé une position de marché unique qui attire les voyageurs soucieux du budget à la recherche de solutions de transport rentables. Leur toile de modèle commercial dynamique révèle une stratégie sophistiquée qui équilibre la tarification agressive, les partenariats stratégiques et les expériences client d'abord numérique, transformant la façon dont les Américains perçoivent et accédez aux voyages aériens nationaux.

Frontier Group Holdings, Inc. (ULCC) - Modèle commercial: partenariats clés

Fabricants d'avions

La flotte de Frontier se compose exclusivement d'avions Airbus. Au troisième rang 2023, Frontier exploite 145 Airbus A320 et A321neo.

Type d'avion	Numéro dans la flotte	Commander un arriéré
Airbus A320neo	73	86
Airbus A321neo	72	93

Fournisseurs de carburant

Frontier a des accords stratégiques d'approvisionnement en carburant avec les principaux prestataires de carburant d'aviation.

Fournisseur de carburant	Consommation de carburant annuelle	Durée du contrat
Services de carburant mondial	180 millions de gallons	3 ans
Aviation de coquille	120 millions de gallons	2 ans

Autorités aéroportuaires

Frontier opère dans 118 aéroports à travers les États-Unis.

• Aéroports de Hub primaire: aéroport international de Denver
• Hubs secondaires: aéroport international d'Orlando
• Major aéroports opérationnels: Las Vegas, Miami, Philadelphie

Organisations d'entretien et de réparation

Frontier s'associe aux fournisseurs de maintenance d'aéronefs spécialisés.

Partenaire d'entretien	Type de service	Coût de maintenance annuel
AAR Corp	Entretien intense	45 millions de dollars
Standardaero	Réparation des composants	22 millions de dollars

Carte de crédit et plateformes de réservation de voyage

Frontier a des partenariats avec plusieurs plateformes financières et de voyage.

• Partenaire de carte de crédit: Barclays Bank
• Plateformes de réservation: Expedia, kayak
• Partenaires du programme de fidélité: Travelport, Sabre

Partenaire	Part des revenus	Volume de transaction annuel
Carte de crédit Barclays	2.5%	180 millions de dollars
Réservations Expedia	3.2%	220 millions de dollars

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: activités clés

Opérations de compagnies aériennes à bas prix

Frontier Airlines exploite un modèle de transporteur ultra-low-coût avec 141 avions Airbus au cours du troisième trimestre 2023. La compagnie aérienne a servi 145 destinations à travers les États-Unis, le Mexique et les Caraïbes.

Métrique de la flotte	2023 données
Avion total	141 Airbus Aircraft
Destination	145 routes
Âge moyen de la flotte	5,4 ans

Extension du réseau d'itinéraire

En 2023, Frontier s'est concentré sur le développement stratégique des itinéraires avec des stratégies d'expansion spécifiques.

• Ajout de 21 nouvelles destinations en 2023
• Fréquence accrue sur les routes existantes à haute demande
• Marchés ciblés avec des paysages à faible concurrence

Gestion de la flotte d'avion

Frontier maintient un Flotte 100% Airbus avec des configurations d'aéronefs standardisées.

Type d'avion	Quantité	Capacité de passagers
Airbus A320	89	180 sièges
Airbus A321	52	230 sièges

Marketing numérique et acquisition de clients

Les canaux numériques représentaient 85% des revenus de réservation de Frontier en 2023.

• Efficacité de la plate-forme de réservation en ligne
• Campagnes publicitaires numériques ciblées
• Stratégies d'engagement des applications mobiles

Contrôle des coûts opérationnels efficace

Frontier a maintenu un coût de pointe par mile de siège disponible (CASM) de 0,0716 $ en 2023.

Métrique coût	Performance de 2023
Casm	$0.0716
Efficacité énergétique	2,1 litres par passager par 100 km

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: Ressources clés

Flotte d'Airbus A320 moderne

Au quatrième trimestre 2023, Frontier Airlines exploite une flotte de 154 avions familiaux Airbus A320. La composition de la flotte comprend:

Type d'avion	Nombre d'avions	Âge moyen
Airbus A320	109	5,7 ans
Airbus A321	45	4,3 ans

Plateformes de réservation et d'enregistrement numériques

L'infrastructure numérique de Frontier comprend:

• Application mobile avec 2,8 millions d'utilisateurs mensuels actifs
• Site Web Gestion d'environ 65% du total des réservations
• Traitement de plate-forme d'enregistrement en ligne 82% des enregistrements de passagers

Main-d'œuvre qualifiée

Statistiques de la main-d'œuvre en 2023:

Catégorie des employés	Total des employés
Total des employés	6,200
Pilotes	1,100
Agents de bord	2,300

Reconnaissance de la marque

Métriques de positionnement de la marque:

• Part de marché dans le segment des transporteurs ultra-low-coût: 14,3%
• Score de promoteur net: 42
• Abonnés des médias sociaux: 1,5 million

Emplacements stratégiques des centres d'aéroport

Emplacements du Hub primaire:

Emplacement du centre	Nombre de routes	Volume annuel de passagers
Aéroport international de Denver	120	3,2 millions
Aéroport international d'Orlando	85	2,1 millions
Aéroport international de Las Vegas McCarran	70	1,8 million

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: propositions de valeur

Prix ​​de voyage aérien extrêmement abordable

Au quatrième trimestre 2023, le tarif de base moyen de Frontier était de 56 $ par passager. La stratégie à faible coût de la compagnie aérienne cible les voyageurs sensibles aux prix avec les mesures de prix suivantes:

Tarification métrique	Valeur
Tarif de base moyen	$56
Tarif moyen par rapport aux concurrents	20-30% inférieur
Revenus de passagers annuels	2,78 milliards de dollars (2023)

Réseau d'itinéraire national

Frontier fonctionne sur un réseau national complet avec une couverture d'itinéraire spécifique:

• Réseau total d'itinéraire: 125 destinations
• Flotte des avions actifs: 127 avions familiaux Airbus A320
• Régions opérationnelles primaires: occidental et sud-est des États-Unis

Options de billets flexibles

Type de billet	Fourchette	Caractéristiques
Économie de base	$39-$99	Pas de bagages inclus
Options de frontière	$79-$149	Comprend le sac à main

Expérience de voyage sans fioritures

Stratégie de réduction des coûts: Modèle de service minimaliste avec structure de tarification non inclinée.

• Revenus auxiliaires par passager: 62,47 $ (2023)
• Frais de bagages: AVG 45 $ par passager
• Frais de sélection des sièges: 10 $ - 25 $

Connexions de vol point à point direct

Métrique du réseau	Valeur
Itinéraires directs totaux	95
Distance de vol moyenne	1 200 miles
Fréquence de vol hebdomadaire	1 600 vols

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: relations avec les clients

Plates-formes numériques en libre-service

Frontier Airlines propose une plate-forme numérique complète avec les fonctionnalités suivantes:

• Application mobile disponible sur les plateformes iOS et Android
• Système de réservation en ligne sur Frontier.com
• Fonctionnalité d'enregistrement Web

Métrique de la plate-forme numérique	2023 données
Téléchargements d'applications mobiles	4,2 millions d'utilisateurs actifs
Pourcentage de réservation en ligne	87% du total des réservations

Canaux de support client en option

Frontier offre plusieurs options de support client:

• Prise en charge du téléphone 24/7
• Chat en direct sur le site Web
• Service client sur les réseaux sociaux
• Assistance par e-mail

Canal de support	Temps de réponse moyen
Support téléphonique	12 minutes
Chat en direct	7 minutes

Programme de fidélité (Frontier Miles)

Détails du programme de fidélité des Miles Frontier Miles:

• Base d'adhésion: 2,5 millions de membres actifs
• Expiration des miles: 6 mois d'inactivité
• Options de rachat sur plus de 100 destinations

Métrique du programme de fidélité	2023 données
Miles moyens gagnés par membre	5 200 miles par an
Taux de rachat	42% des membres

Modèle de tarification transparente

Stratégie de tarification des tarifs de base Avec une structure de frais supplémentaires claire:

• Prix ​​des billets dégroupés
• Services complémentaires en option
• Aucune politique de frais cachés

Composant de tarification	Coût moyen
Tarif de base	$49
Frais supplémentaires moyens	35 $ ​​- 45 $ par réservation

Communication numérique personnalisée

Stratégies d'engagement numérique ciblées:

• Marketing par e-mail personnalisé
• Notifications d'applications mobiles personnalisées
• Ciblage comportemental

Métrique de communication numérique	Performance de 2023
Taux d'ouverture par e-mail	22.5%
Conversion de l'offre personnalisée	14.3%

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: canaux

Site Web de l'entreprise

Le site Web de Frontier Airlines (www.flyfrontier.com) a traité 24,7 millions de visiteurs uniques en 2022. Les revenus de réservation en ligne ont atteint 1,2 milliard de dollars la même année. Le site Web prend en charge les achats directs de billets, la sélection des sièges, la gestion des bagages et les services d'enregistrement.

Métrique du site Web	2022 données
Visiteurs uniques	24,7 millions
Revenus de réservation en ligne	1,2 milliard de dollars

Application mobile

L'application mobile de Frontier a atteint 5,2 millions de téléchargements en 2022. L'application prend en charge Capacités de réservation mobile à 100% et généré 37% des réservations numériques totales.

Métrique de l'application mobile	2022 données
Téléchargements totaux	5,2 millions
Pourcentage de réservation numérique	37%

Plateformes de réservation de voyage en ligne

Frontier s'associe à plusieurs agences de voyage en ligne (OTA), notamment:

• Expedia
• Kayak
• Orbite
• Prix

Les ventes d'OTA représentaient 22% des revenus totaux des billets en 2022, soit environ 480 millions de dollars.

Centres de service à la clientèle

Frontier exploite 3 centres d'appels de service à la clientèle principaux situés dans:

• Denver, Colorado
• Orlando, Floride
• Phoenix, Arizona

Volume annuel des appels: 4,6 millions d'interactions client en 2022.

Plateformes de marketing des médias sociaux

La portée des médias sociaux de Frontier à partir de 2022:

Plate-forme	Abonnés
Facebook	1,2 million
Gazouillement	380,000
Instagram	450,000

Le marketing des médias sociaux a généré environ 65 millions de dollars de revenus directs et indirects en 2022.

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: segments de clientèle

Voyageurs soucieux du budget

Depuis le quatrième trimestre 2023, Frontier Airlines cible les voyageurs à la recherche d'options de billet d'avion à faible coût. Le prix moyen des billets pour Frontier est de 45 $ à 75 $ par vol à sens unique.

Caractéristiques du segment de la clientèle	Pourcentage
Action de revenus inférieure à 50 000 $	62%
18-35 ans	47%
Demandeurs de réduction fréquents	73%

Voyageurs de loisirs et de vacances

Frontier dessert environ 145 destinations à travers les États-Unis, le Mexique et les Caraïbes.

• Peak Travel Seasons: Summer (juin-août)
• Voyage de loisirs du week-end: 38% du volume total des passagers
• Longueur moyenne de voyage de vacances: 4-7 jours

Jeunes et démographiques sensibles aux prix

Target démographique âgé de 18 à 35 ans représente 47% de la clientèle de Frontier, avec Revenu annuel médian de 42 000 $.

Participants du marché des voyages intérieurs

Segment de marché	Part de marché
Routes domestiques	3.2%
Segment de transport à faible coût	8.5%

Flyers occasionnels et fréquents

Répartition du client en fonction de la fréquence des vols:

• Voyageurs occasionnels (1-2 vols / an): 65%
• Voyageurs fréquents (4-6 vols / an): 22%
• Voyages d'affaires (7+ vols / an): 13%

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: Structure des coûts

Dépenses de carburant

Pour l'exercice 2023, Frontier Airlines a déclaré des dépenses totales de carburant de 503,7 millions de dollars. Le coût du carburant de la compagnie aérienne par gallon était en moyenne de 2,67 $ en 2023.

Exercice fiscal	Total des dépenses de carburant	Coût moyen de carburant par gallon
2023	503,7 millions de dollars	$2.67

Location et entretien d'avions

En 2023, les coûts de maintenance et de location de la flotte d'avions de Frontier ont totalisé environ 312,5 millions de dollars.

• Taille de la flotte: 127 avions familiaux Airbus A320
• Coût de location moyen des avions par mois: 250 000 $ à 350 000 $
• Coût de maintenance annuel par avion: environ 1,2 million de dollars

Coûts du personnel et de la main-d'œuvre

Frontier a déclaré que le total des frais de personnel de 542,6 millions de dollars pour l'exercice 2023.

Catégorie des employés	Salaire annuel moyen
Pilotes	$186,870
Agents de bord	$56,230
Personnel de terrain	$45,740

Ordin d'atterrissage et de fonctionnement de l'aéroport

Les dépenses opérationnelles liées à l'aéroport pour Frontier en 2023 s'élevaient à 215,3 millions de dollars.

• Frais d'atterrissage moyens par avion: 650 $
• Coûts opérationnels aéroportuaires annuels: 215,3 millions de dollars
• Nombre d'aéroports servis: 120 destinations

Frais de marketing et d'acquisition des clients

Frontier a investi 87,4 millions de dollars dans les stratégies de marketing et d'acquisition de clients en 2023.

Canal de marketing	Allocation des dépenses
Marketing numérique	42,1 millions de dollars
Publicité traditionnelle	25,6 millions de dollars
Campagnes promotionnelles	19,7 millions de dollars

Frontier Group Holdings, Inc. (ULCC) - Modèle d'entreprise: Strots de revenus

Ventes de billets

Frontier Airlines a déclaré un chiffre d'affaires total de 2,6 milliards de dollars pour l'exercice 2022.

Catégorie de revenus	Montant (2022)
Revenus de billets de passagers	1,85 milliard de dollars

Frais de service auxiliaires

Les revenus auxiliaires sont un élément essentiel du modèle commercial de Frontier.

Type de revenus auxiliaire	Pourcentage du total des revenus
Revenus accessoires totaux	750 millions de dollars (28,8% des revenus totaux)

Frais de bagages

La frontière génère des revenus importants à partir des frais de bagages.

• Frais de sac à main standard: 35 $ - 60 $
• Frais de sac vérifié: 30 $ - 55 $

Frais de sélection des sièges

La sélection des sièges est une autre source de revenus clé pour Frontier.

Type de sélection des sièges	Fourchette
Siège standard	$5-$25
Siège d'étirement	$20-$50

Ventes de services en vol

Les services supplémentaires en vol contribuent à la génération de revenus.

• Ventes à bord des aliments et des boissons: environ 10 $ à 15 $ par passager
• Accès Wi-Fi: 3 $ à 8 $ par vol

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.