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Frontier Airlines opts to resize Denver Airport operations, citing higher operating costs

Analysis

Frontier Airlines is in the midst of several network changes designed to aid its transition to becoming an ultra low-cost airline, and in the process appears to be challenging its headquarters Denver International Airport for what the airline perceives as operating charges that are rising faster than other major airports in the US.

The airline is eliminating numerous markets from Denver, mostly smaller routes that generate higher cost connecting passengers. Even as Frontier declares that higher airport costs make connecting traffic unprofitable for the airline, those markets were arguably not a good fit with the network Frontier is trying to create as it works to complete its business model transition.

Frontier is also opting to acquire larger gauge Airbus narrowbodies, a trend being adopted by major and low-cost airlines alike to drive down unit costs. All the moves Frontier is making show that the there are more chapters ot be written in its quest to attain ULCC status.

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