Ryan Kaposi

Ryan Kaposi asked about the drivers behind the divergence in fare revenue versus ancillary revenue trends this quarter and how to project the growth of both segments going forward. He also questioned Frontier's strategy and aggressive growth in Atlanta.

Answer

Chief Commercial Officer Bobby Schroeter attributed improvements to migrating back to a basic first product architecture, reinforced revenue management discipline, and enhanced NDC distribution, which improves conversion and bundle attachment. President and CEO Jimmy Dempsey highlighted that NDC provides customers with clarity on total trip costs, leading to earlier bundle conversions. On Atlanta, Dempsey noted opportunities due to Southwest and Spirit reducing capacity, and positive commercial performance supporting increased departures.

Ryan Kaposi asked about the drivers behind the divergence in fare revenue versus ancillary revenue trends this quarter and how to project the growth of both segments. He also inquired about Frontier's specific strategy for aggressive growth in Atlanta this year.

Answer

Chief Commercial Officer Bobby Schroeter attributed the trends to migrating back to a 'basic first' product architecture with three bundles, reinforced revenue management discipline, and significant NDC distribution enhancements. These changes improve conversion, bundle merchandising on OTAs, and drive earlier purchases, benefiting both ancillary and fare revenue. President and CEO Jimmy Dempsey added that NDC provides customers with greater clarity on the total cost of their trip, including bundles, leading to earlier conversions and improved unit revenues. Dempsey explained that growth in Atlanta is opportunistic, capitalizing on reduced capacity from Southwest and Spirit, and building on Frontier's existing successful operation there.