Frontier Airlines is offering free bags for customers over the summer, it said on March 18, 2025. The promotion — running from May 28 through August 18 — follows Southwest announcing earlier this month that it is dropping free bags for passengers.
Frontier took a swipe at the policy change, stating: “Some airlines have changed. They've raised fees, taken away perks and made travel feel like a one-sided relationship. If your airline is treating you like an afterthought, maybe it's time to file for divorce. Frontier is here for the rebound.”
Southwest's policy change was introduced to boost revenues, though also parting from a core part of its brand identity and low-cost structure. The airline said two free checked bags will be limited to business select tickets or have top tier loyalty status, while those with loyalty status a notch lower will be allowed one free checked baggage. Southwest management noted during the JP Morgan Industrials Conference that the initiative will also drive acquisition of its Rapid Rewards credit card.
“Some airlines are walking away from what travellers love, but we're running towards it,” said Frontier CEO Barry Biffle. He coined the offer as a “‘divorce your old airline’ deal”.
While the offer is currently temporary and accessible through a promo code, the airline said it will be a permanent fixture to its model if proven popular.
“You don't need a promo code to avoid change fees, cancellation fees, view in-flight entertainment or bring along two carry-on items on Southwest,” said a Southwest spokesperson to Airline Economics in response. "We look forward to serving the new customers attracted to fare above all else, as well as rewarding our most loyal customers in our unmatched network.
Last year, Frontier had scrapped change fees for certain bundles with fellow low-cost airline Spirit following suit shortly after. The latter airline had recently rejected a third merger offer from Frontier, before its emergence from chapter 11 restructuring on February 12, 2025, going ahead with its premium rebrand.
While Frontier stated it would not pursue a merger post-restructuring, JP Morgan analyst Mark Streeter said during an airline and aircraft leasing webinar on March 18, 2025: “We are of the view that Spirit didn't really accomplish all that much in its bankruptcy other than buying more time to ultimately get a deal done. We still think that both the Spirit and Frontier business models are somewhat compromised.”
The low cost carrier model has become more constrained in the US market, with analysts questioning its viability in the current environment.
“But that combination could have more stay-in power,” added Streeter.
The view coincides with comments from one lawyer familiar with the matter, who said Spirit's new and more concentrated ownership suggest the company will look to merge.
When the restructuring plan was approved, Judge Sean Lane in the Southern District of New York had handed over control of Spirit to its majority bondholders, including Citadel Advisors, PIMCO, and Western Asset Management, according to court documents.
The lawyer added that a merger would provide it to scale to compete with its premium offerings more effectively. While JetBlue's acquisition of Spirit was blocked and ultimately terminated in the first quarter last year, the lawyer said the new administration may prove a tailwind for a potential Spirit merger. They added that the next 12 months would be “critical” to see whether Spirit's premium standalone plan is successful.
JP Morgan analyst Jamie Baker said: “It's a widely accepted view at this point that the fourth time better be the charm, because otherwise… Everything spirit has done thus far has sort of the hallmarks of a potential chapter 22 so a subsequent bankruptcy filing over the next 12 to 18 months, if something doesn't meaningfully change.”
Another lawyer commented on the matter, stating that the new owners may take some to assess the value of Spirit before pursuing a merger.
In an income statement filed with the US Bankruptcy Court on March 11, 2025, Spirit reported a net loss of $138.4 million in January 2025.