Frontier Group first class option to increase revenue, says Barclays

Barclays keeps an Overweight rating on Frontier Group (ULCC) with a $10 price target after the company added a first class option and loyalty program. These should help “bridge some of the revenue generation gap” to tiered premium products and loyalty rewards seen at larger network carriers, the analyst tells investors in a research note. The firm says first class and unlimited companion passes could increase revenue per available seat mile five points by 2026, which it views as “long-term favorable changes,” especially in light of Spirit’s bankruptcy. However, Frontier’s lack of Q4 guidance upgrade may have challenged investors seeking near-term upside, Barclays adds.