Frontier Stock Falls After Airline Announces Bundle Of Perks Including Free Checked Bags: Retail Sentiment Sours

Shares of Frontier Group Holdings Inc (ULCC) fell over 3% on Tuesday morning after the airline announced a bundle of perks, including free checked bags in what is seen as an apparent swipe at Southwest Airlines (LUV).

Recently, Southwest announced for the first time that it would charge passengers to check their bags.

The airline said it will continue to offer two free checked bags to its Rapid Rewards A-List Preferred Members and customers traveling on Business Select fares and one free checked bag to A-List Members and other select customers.

Southwest also stated it will credit one checked bag for Rapid Rewards Credit Cardmembers. However, passengers not qualifying for these free bag options will be charged for their first and second checked bags.

Meanwhile, Frontier said that for all non-stop travel bookings starting Tuesday through Aug. 18, customers can receive the Economy Bundle for free, including a free carry-on bag, seat selection, and flight changes.

“Plus, we’re throwing in a free checked bag for flights departing May 28 through Aug. 18 (with promo code FREEBAG)! Fares start as low as $39 each way. To take advantage of this offer, bookings must be completed by March 24,” the airline announced.

“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 - offering a fresh start with an unbeatable deal,” Frontier added in what appears to be a swipe at Southwest’s recent announcement.

Frontier CEO Barry Biffle highlighted the possibility of the airline making these perks permanent. “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,” he said.

Meanwhile, on Stocktwits, retail sentiment inched lower into the ‘neutral’ territory (48/100) from ‘bullish’ a day ago.

Earlier this month, Deutsche Bank downgraded Frontier stock to ‘Hold’ from ‘Buy’ with a price target of $8, down from $12.

According to TheFly, the downgrade reflects the current uncertainty in the U.S. macroeconomic outlook. The brokerage believes the economy will have a disproportionately larger impact on low-fare carriers like Frontier.

Frontier shares have lost nearly 18% in 2025.

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