'Divorce Your Old Airline': Frontier Comes for Southwest With Free Bags Promo
Skift Take
Key Points
- Frontier Airlines is challenging Southwest by offering a promo with free checked bags, carry-ons, and seat selection for flights booked by March 24.
- Multiple airlines see an opportunity to attract Southwest's customers after it announced it would start implementing bag fees.
- The Skift Travel 200 index tracks the performance of airline stocks, reflecting the financial health of the sector.
Summary
Frontier Airlines is capitalizing on Southwest's decision to implement bag fees by offering a promotional deal that includes free checked bags, carry-ons, and seat selection, aiming to attract disillusioned Southwest customers. Other airlines, including Delta, United, and Spirit, are also strategizing to capture Southwest's market share. The Skift Travel 200 index provides insights into the financial performance of the airline sector amid these competitive shifts.
Frontier Airlines is taking a dig at Southwest for nixing its popular no bag fees policy.
The ultra-low-cost carrier announced that it would offer free checked bags to customers through a promo deal for flights that take place from May 28 to August 18. As part of the deal, customers can receive an economy bundle that also includes a free carry-on and seat selection if they book their flights by March 24.
“We’ve always had heart,” said Frontier CEO Barry Biffle in a statement, making a reference to Southwest, whose home airport is Dallas Love Field and whose branding includes a heart as part of its logo, along the stock ticker “LUV.”
“Some airlines are walking away from what travelers love, but we’re running towards it. Think of this as the ultimate ‘divorce your old airline’ deal. If travelers show us the love, we’ll make these perks permanent.”
Frontier said if the deal becomes popular with customers, it would consider making the promo permanent.
Airlines Vie for Southwest Customers
After Southwest said it would start implementing bag fees for most of its fare classes, multiple airline CEOs have said that they see an opening to attract some of the Dallas-based carrier’s customers.
Delta president Glen Hauenstein said at the JPMorgan conference last week that Southwest’s customers are “up for grabs.”
United CEO Scott Kirby described Southwest’s controversial change as “the slaying of a scared cow.”
Spirit CEO Ted Christie told CNBC that the carrier, which just came out of Chapter 11 bankruptcy, was ready to take on Southwest.
“I think it’s going to be painful for a little bit as they find their footing, and we’re going to take advantage of that,” Christie said to CNBC.
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Photo Credit: A Frontier Airlines A320neo. Tad Denson/Airbus Airbus/Tad Denson / Airbus/Tad Denson
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