Frontier Group Holdings, Inc. (ULCC): Modelo de negócios Canvas [Jan-2025 Atualizado]

O Frontier Group Holdings, Inc. (ULCC) revoluciona as viagens aéreas com seu inovador modelo de negócios de transportadores de custo ultra-baixo, projetado estrategicamente para interromper a economia das companhias aéreas tradicionais. Ao elaborar meticulosamente uma abordagem operacional enxuta que prioriza a acessibilidade e a eficiência, a Frontier criou uma posição única de mercado que atrai viajantes preocupados com o orçamento que buscam soluções de transporte econômicas. Seu modelo de negócios dinâmico Canvas revela uma estratégia sofisticada que equilibra preços agressivos, parcerias estratégicas e experiências digitais de clientes, transformando como os americanos percebem e acessam as viagens aéreas domésticas.

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: Parcerias -chave

Fabricantes de aeronaves

A frota de Frontier consiste exclusivamente de aeronaves da Airbus. A partir do terceiro trimestre de 2023, a Frontier opera aeronaves 145 Airbus A320 e A321neo.

Tipo de aeronave	Número na frota	Encomendar o backlog
Airbus A320neo	73	86
Airbus A321neo	72	93

Fornecedores de combustível

A Frontier possui acordos estratégicos de fornecimento de combustível com os principais provedores de combustível da aviação.

Fornecedor de combustível	Consumo anual de combustível	Duração do contrato
Serviços de combustível mundial	180 milhões de galões	3 anos
Aviação da Shell	120 milhões de galões	2 anos

Autoridades aeroportuárias

Frontier opera em 118 aeroportos nos Estados Unidos.

• Aeroportos primários do centro: Aeroporto Internacional de Denver
• Hubs secundários: Aeroporto Internacional de Orlando
• Principais aeroportos operacionais: Las Vegas, Miami, Filadélfia

Organizações de manutenção e reparo

A Frontier faz parceria com provedores especializados de manutenção de aeronaves.

Parceiro de manutenção	Tipo de serviço	Custo de manutenção anual
AAR Corp	Manutenção pesada	US $ 45 milhões
StandardAero	Reparo de componentes	US $ 22 milhões

Plataformas de cartão de crédito e reserva de viagem

Frontier tem parcerias com várias plataformas financeiras e de viagem.

• Parceiro do cartão de crédito: Barclays Bank
• Plataformas de reserva: Expedia, caiaque
• Parceiros do Programa de Fidelidade: Travelport, Sabre

Parceiro	Participação de receita	Volume anual de transações
Cartão de crédito Barclays	2.5%	US $ 180 milhões
Reservas da Expedia	3.2%	US $ 220 milhões

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: Atividades -chave

Operações de companhias aéreas de passageiros de baixo custo

A Frontier Airlines opera um modelo de transportadora de custo ultra baixo com 141 aeronaves da Airbus a partir do terceiro trimestre de 2023. A companhia aérea serviu 145 destinos nos Estados Unidos, no México e no Caribe.

Métrica da frota	2023 dados
Aeronaves totais	141 Airbus Aircraft
Destinos	145 rotas
Idade média da frota	5,4 anos

Rota a expansão da rede

Em 2023, a Frontier se concentrou no desenvolvimento estratégico de rota com estratégias de expansão específicas.

• Adicionou 21 novos destinos em 2023
• Frequência aumentada nas rotas de alta demanda existentes
• Mercados direcionados com paisagens de baixa concorrência

Gerenciamento de frota de aeronaves

Frontier mantém um Frota 100% da Airbus com configurações de aeronaves padronizadas.

Tipo de aeronave	Quantidade	Capacidade do passageiro
Airbus A320	89	180 assentos
Airbus A321	52	230 assentos

Marketing digital e aquisição de clientes

Os canais digitais representaram 85% da receita de reserva da Frontier em 2023.

• Eficiência da plataforma de reserva on -line
• Campanhas de publicidade digital direcionadas
• Estratégias de engajamento de aplicativos móveis

Controle de custo operacional eficiente

A Frontier manteve um custo líder do setor por milha de segurança disponível (CASM) de US $ 0,0716 em 2023.

Métrica de custo	2023 desempenho
Casm	$0.0716
Eficiência de combustível	2,1 litros por passageiro por 100 km

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: Recursos -chave

Frota de aeronaves Airbus A320 moderna

A partir do quarto trimestre 2023, a Frontier Airlines opera uma frota de 154 aeronaves familiares Airbus A320. A composição da frota inclui:

Tipo de aeronave	Número de aeronaves	Idade média
Airbus A320	109	5,7 anos
Airbus A321	45	4,3 anos

Plataformas de reserva e check-in digitais

A infraestrutura digital da Frontier inclui:

• Aplicativo móvel com 2,8 milhões de usuários mensais ativos
• Manipulação de sites aproximadamente 65% do total de reservas
• Processamento de plataforma de check-in online 82% dos check-ins de passageiros

Força de trabalho qualificada

Estatísticas da força de trabalho a partir de 2023:

Categoria de funcionários	Total de funcionários
Total de funcionários	6,200
Pilotos	1,100
Comissários de bordo	2,300

Reconhecimento da marca

Métricas de posicionamento da marca:

• Participação de mercado no segmento de transportadora de custo ultra baixo: 14,3%
• Pontuação do promotor líquido: 42
• Seguidores de mídia social: 1,5 milhão

Locais estratégicos de hub do aeroporto

Locais do cubo primário:

Localização do cubo	Número de rotas	Volume anual de passageiros
Aeroporto Internacional de Denver	120	3,2 milhões
Aeroporto Internacional de Orlando	85	2,1 milhões
Aeroporto Internacional de Las Vegas McCarran	70	1,8 milhão

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: proposições de valor

Preços de viagem aérea extremamente acessíveis

No quarto trimestre 2023, a tarifa base média da Frontier era de US $ 56 por passageiro. A estratégia de baixo custo da companhia aérea tem como alvo os viajantes sensíveis ao preço com as seguintes métricas de preços:

Métrica de precificação	Valor
Tarifa base média	$56
Tarifa média em comparação aos concorrentes	20-30% menor
Receita anual de passageiros	US $ 2,78 bilhões (2023)

Extensa rede de rota doméstica

A Frontier opera em uma rede doméstica abrangente com cobertura de rota específica:

• Rede de rota total: 125 destinos
• Frota de aeronave ativa: 127 Airbus A320 Family Aircraft
• Regiões operacionais primárias: oeste e sudeste dos Estados Unidos

Opções de ingressos flexíveis

Tipo de ingresso	Faixa de preço	Características
Economia básica	$39-$99	Sem bagagem incluída
Opções de fronteira	$79-$149	Inclui bolsa de mão

Experiência de viagem sem frescuras

Estratégia de redução de custos: Modelo de Serviço Minimalista com Estrutura de Preços Unido.

• Receita auxiliar por passageiro: US $ 62,47 (2023)
• Taxas de bagagem: AVG $ 45 por passageiro
• Taxas de seleção de assentos: $ 10- $ 25

Conexões de voo ponto a ponto direto

Métrica de rede	Valor
Rotas diretas totais	95
Distância média do voo	1.200 milhas
Frequência semanal de vôo	1.600 voos

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: Relacionamentos do cliente

Plataformas digitais de autoatendimento

A Frontier Airlines oferece uma plataforma digital abrangente com os seguintes recursos:

• Aplicativo móvel disponível em plataformas iOS e Android
• Sistema de reserva on -line em Frontier.com
• Funcionalidade de check-in na web

Métrica da plataforma digital	2023 dados
Downloads de aplicativos móveis	4,2 milhões de usuários ativos
Porcentagem de reserva on -line	87% do total de reservas

Canais opcionais de suporte ao cliente

Frontier fornece várias opções de suporte ao cliente:

• Suporte por telefone 24/7
• Chat ao vivo no site
• Atendimento ao cliente de mídia social
• Suporte por e -mail

Canal de suporte	Tempo médio de resposta
Suporte telefônico	12 minutos
Bate -papo ao vivo	7 minutos

Programa de fidelidade (Frontier Miles)

Detalhes do programa de fidelidade de Frontier Miles:

• Base de associação: 2,5 milhões de membros ativos
• Expiração de milhas: 6 meses de inatividade
• Opções de resgate em mais de 100 destinos

Métrica do Programa de Fidelidade	2023 dados
Miles médios ganhos por membro	5.200 milhas por ano
Taxa de resgate	42% dos membros

Modelo de preços transparentes

Estratégia de preços de tarifa base Com uma estrutura clara de taxas adicionais:

• Preços de ingressos sem construção
• Serviços de complementos opcionais
• Nenhuma política de taxas ocultas

Componente de preços	Custo médio
Tarifa base	$49
Taxas adicionais médias	$ 35- $ 45 por reserva

Comunicação digital personalizada

Estratégias direcionadas de engajamento digital:

• Marketing por e -mail personalizado
• Notificações de aplicativos móveis personalizados
• Direcionamento comportamental

Métrica de comunicação digital	2023 desempenho
Taxa de abertura por e -mail	22.5%
Conversão de oferta personalizada	14.3%

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: canais

Site da empresa

O site da Frontier Airlines (www.flyfrontier.com) processou 24,7 milhões de visitantes únicos em 2022. A receita de reserva on -line atingiu US $ 1,2 bilhão no mesmo ano. O site suporta compras diretas de ingressos, seleção de assentos, gerenciamento de bagagem e serviços de check-in.

Métrica do site	2022 dados
Visitantes únicos	24,7 milhões
Receita de reserva on -line	US $ 1,2 bilhão

Aplicativo móvel

O aplicativo móvel da Frontier alcançou 5,2 milhões de downloads em 2022. O aplicativo suporta Recursos de reserva 100% móveis e gerou 37% do total de reservas digitais.

Métrica de aplicativo móvel	2022 dados
Downloads totais	5,2 milhões
Porcentagem de reserva digital	37%

Plataformas de reserva de viagem online

A Frontier faz parceria com várias agências de viagens on -line (OTAs), incluindo:

• Expedia
• Caiaque
• Orbitz
• Pricelina

As vendas da OTA representaram 22% da receita total de ingressos em 2022, totalizando aproximadamente US $ 480 milhões.

Centros de atendimento ao cliente

A Frontier opera 3 centros de atendimento de atendimento ao cliente, localizados em:

• Denver, Colorado
• Orlando, Flórida
• Phoenix, Arizona

Volume anual de chamadas: 4,6 milhões de interações com os clientes em 2022.

Plataformas de marketing de mídia social

A mídia social de Frontier alcance a partir de 2022:

Plataforma	Seguidores
Facebook	1,2 milhão
Twitter	380,000
Instagram	450,000

O marketing de mídia social gerou cerca de US $ 65 milhões em receita direta e indireta em 2022.

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

Viajantes conscientes do orçamento

A partir do quarto trimestre 2023, a Frontier Airlines tem como alvo os viajantes que buscam opções de passagem aérea de baixo custo. O preço médio do bilhete para a Frontier é de US $ 45 a US $ 75 por voo unidirecional.

Características do segmento de clientes	Percentagem
A renda varia abaixo de US $ 50.000	62%
Idade 18-35	47%
Buscadores de desconto frequentes	73%

Lazer e viajantes de férias

A Frontier serve aproximadamente 145 destinos nos mercados dos Estados Unidos, México e Caribe.

• Peak Travel Seasons: Summer (junho-agosto)
• Viagem de lazer de fim de semana: 38% do volume total de passageiros
• Comprimento médio de viagem de férias: 4-7 dias

Jovem e sensível ao preço demográfico

Decongridade-alvo de 18 a 35 anos representa 47% da base de clientes da Frontier, com Renda anual mediana de US $ 42.000.

Participantes do mercado de viagens domésticas

Segmento de mercado	Quota de mercado
Rotas domésticas	3.2%
Segmento de transportadora de baixo custo	8.5%

Folhetos ocasionais e frequentes

Redução do cliente com base na frequência de vôo:

• Viajantes ocasionais (1-2 voos/ano): 65%
• Viajantes frequentes (4-6 voos/ano): 22%
• Viajantes de negócios (mais de 7 voos/ano): 13%

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: estrutura de custos

Despesas de combustível

Para o ano fiscal de 2023, a Frontier Airlines registrou despesas totais de combustível de US $ 503,7 milhões. O custo de combustível da companhia aérea por galão teve uma média de US $ 2,67 em 2023.

Ano fiscal	Despesas totais de combustível	Custo médio de combustível por galão
2023	US $ 503,7 milhões	$2.67

Leasing e manutenção de aeronaves

Em 2023, os custos de manutenção e leasing da frota de aeronaves da Frontier totalizaram aproximadamente US $ 312,5 milhões.

• Tamanho da frota: 127 Airbus A320 Aeronaves da família
• Custo médio de arrendamento de aeronaves por mês: US $ 250.000 a US $ 350.000
• Custo de manutenção anual por aeronave: aproximadamente US $ 1,2 milhão

Pessoal e custos de mão -de -obra

A Frontier registrou despesas totais de pessoal de US $ 542,6 milhões para o ano fiscal de 2023.

Categoria de funcionários	Salário médio anual
Pilotos	$186,870
Comissários de bordo	$56,230
Funcionário do solo	$45,740

Taxas de aterramento e operacional do aeroporto

As despesas operacionais relacionadas ao aeroporto para Frontier em 2023 totalizaram US $ 215,3 milhões.

• Taxa média de pouso por aeronave: $ 650
• Custos operacionais anuais de aeroporto: US $ 215,3 milhões
• Número de aeroportos servidos: 120 destinos

Despesas de marketing e aquisição de clientes

A Frontier investiu US $ 87,4 milhões em estratégias de marketing e aquisição de clientes durante 2023.

Canal de marketing	Alocação de despesas
Marketing digital	US $ 42,1 milhões
Publicidade tradicional	US $ 25,6 milhões
Campanhas promocionais	US $ 19,7 milhões

Frontier Group Holdings, Inc. (ULCC) - Modelo de negócios: fluxos de receita

Vendas de ingressos

A Frontier Airlines registrou receitas operacionais totais de US $ 2,6 bilhões no ano fiscal de 2022.

Categoria de receita	Valor (2022)
Receita de ingressos para passageiros	US $ 1,85 bilhão

Taxas de serviço auxiliares

As receitas auxiliares são um componente crítico do modelo de negócios da Frontier.

Tipo de receita auxiliar	Porcentagem da receita total
Receita Auxiliar Total	US $ 750 milhões (28,8% da receita total)

Taxas de bagagem

A Frontier gera receita significativa das taxas de bagagem.

• Taxa de bagagem de mão padrão: $ 35- $ 60
• Taxa de bolsa verificada: $ 30- $ 55

Taxas de seleção de assentos

A seleção de assentos é outro fluxo de receita importante para a Frontier.

Tipo de seleção de assentos	Faixa de preço
Assento padrão	$5-$25
Assento esticado	$20-$50

Vendas de serviço em voo

Serviços adicionais a bordo contribuem para a geração de receita.

• Vendas de alimentos e bebidas a bordo: aproximadamente US $ 10 a US $ 15 por passageiro
• Acesso Wi-Fi: US $ 3- $ 8 por voo

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.