By Rajesh Kumar Singh CHICAGO (Reuters) - Travel boom has delivered bumper earnings for U.S. carriers, but no-frills airlines such as Frontier and ...
By Rajesh Kumar Singh CHICAGO - Travel boom has delivered bumper earnings for U.S. carriers, but no-frills airlines such as Frontier and Spirit are struggling to return to sustainableBy Rajesh Kumar Singh
Ultra low-cost carriers offer a no-frills experience at rock-bottom fares and charge heavily for ancillary services. Frontier is watching the trend"very carefully" and would consider adding premium seats if it lasts for multiple years, he said. Frontier's Biffle called adding premium seats a"big decision" and a"fairly expensive" move. That's why he is not ready to change Frontier's business model"overnight."
As a result, ultra low-cost carriers have not been able to fully utilize their fleets - a strategy they relied upon before the pandemic to lower operating costs and boost profits. Biffle last week said Frontier is facing pressure to offer"very, very low" fares to fill up its planes. Spirit has cut its profit outlook for the current quarter, citing"heightened promotional activity with steep discounting."
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