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Frontier Airlines: guessing the ultimate strategy for its new A321XLR

Analysis

Frontier Airlines' recent announcement that it was converting 18 Airbus A320neo orders to the A321XLR generated a fair amount of speculation over where those aircraft would ultimately be deployed, despite the fact that those aircraft are not scheduled for delivery until 2024.

The company's comments about possible flights to Hawaii set the industry abuzz, that Frontier would become the latest airline to add flights to a market that has recently undergone significant capacity additions and pricing weakness. It is also a market that could undergo changes in the five-year period before Frontier begins operating its new long range aircraft.

There's also the possibility of Frontier adding long haul service to Europe, which seems like a lesser possibility than service deeper into Latin America, where prospects are more promising.

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