• A Frontier Airlines plane appeared to lose a wheel after a "hard landing" in San Juan on Tuesday.
• One passenger told a Puerto Rican newspaper they were left "traumatized" by the incident.
• Frontier said it had offered passengers $500 vouchers and refunds for the flight.

Frontier Airlines said it had offered $500 vouchers and refunds to passengers following what it called a "hard landing" in Puerto Rico on Tuesday night.

Flight 3506 from Orlando briefly touched down at San Juan's Luis Muñoz Marín International Airport before pilots performed a go-around due to an apparent mechanical issue.

Flight tracking data showed that the two-year-old Airbus A321neo then circled over San Juan several times before finally landing.

• Frontier will offer free checked bags this summer to capitalize on Southwest's policy change.
• Southwest is ending its famous "two bags fly free" policy on May 28.
• Frontier is not the first airline to take a jab at Southwest amid the backlash.

One airline's loss is another one's gain.

Budget competitor Frontier Airlines announced on Tuesday that all nonstop flights departing between March 18 and August 18 will receive a free carry-on bag, seat selection, and flight changes.

Those between May 28 and August 18 will receive a free checked bag. Bookings must be complete by March 24.

Frontier's starting date for the free checked luggage is no coincidence — it's the exact same day Southwest Airlines will end its popular "two bags fly free" policy.

Southwest's 180-degree switch has left some customers reeling. The airline says the change is good for business as it tries to cut costs and boost revenue. Shares have rallied since the announcement.

Some loyal flyers online have said the move feels like a money grab. The only Southwest customers who will get a free checked bag are those with elite status or the company's co-branded credit card.

Clearly capitalizing on that discourse, Frontier suggested that Southwest customers should "file for divorce" and that Frontier would be the welcoming "rebound."

Frontier, which is going through its own overhaul to offer more premium perks, said it may even make the free bags permanent if enough people take advantage of the temporary deal.

"We've always had heart," Frontier CEO Barry Biffle said in a press release, alluding to Southwest's famous heart logo. "Some airlines are walking away from what travelers love, but we're running towards it."

Southwest did not immediately respond to a request for comment from Business Insider.

Southwest has more than just a Frontier problem

Fortunately for Southwest, Frontier's less comfortable seats and fee-heavy business model may cause some loyalists to hesitate to book the rival competitor.

Still, the "LUV" airline has another problem: keeping the mainline carriers from siphoning off customers.

Airline CEOs said at a JPMorgan conference on March 11 that Southwest's more price-sensitive customers may jump ship to other carriers.

"It will be a really big deal for Southwest," United CEO Scott Kirby said. "It would be good for everyone else."

Delta CEO Ed Bastian had a similar sentiment, saying Southwest's customers are now "up for grabs."

Aviation expert Harteveldt told Business Insider that Southwest simply isn't as appealing as rivals American Airlines, Delta, or United.

He said Southwest doesn't have as robust a domestic route network or offer premium cabins, airport lounges, or long-haul international flights.

"A traveler who may have been loyal to Southwest up until now may be more open to flying other airlines," he said.

• A Frontier passenger started punching the seat in front of him and a window, an FBI affidavit stated.
• Raul Ramos Tamayo was restrained by crew and other passengers on the flight from Dever to Houston.
• Police met the flight when it landed and he could face a prison sentence or fine if convicted.

A Frontier Airlines passenger could be given a prison sentence after being restrained midflight by other travelers last month.

Raul Ramos Tamayo, 31, was on Frontier flight 4856 from Denver to Houston, per an affidavit from an FBI special agent.

About 30 minutes after takeoff, he started punching the seat in front of him, witnesses are said to have told the FBI.

After crew members approached him, Tamayo is alleged to have started punching a window, resulting in damage.

The affidavit stated that the cabin crew then asked for help from any law enforcement officers or able-bodied passengers, several of whom helped restrain Tamayo with flex cuffs around his wrists and ankles.

Tamayo was then put back into a seat and surrounded by the passengers who subdued him for the rest of the 2½-hour flight, it added.

Officers from the Houston Police Department met the flight at the gate at George Bush Intercontinental Airport.

Tamayo was charged with destruction of aircraft or aircraft facilities. If convicted, he could face a lengthy prison sentence and a fine of up to $250,000.

The FBI affidavit cited an internal airline report that said the damage included a cracked window, broken window shade, and broken outer lining of the window. The total cost of the damage was estimated at $1,546.

"Based on my experience as a Special Agent, I know that a passenger on an aircraft must not cause damage to the aircraft, especially when the aircraft is in flight," the affidavit read.

While cases of unruly passengers remain above pre-pandemic levels, it isn't clear that they always result in prosecutions.

Some airlines are taking more legal actions themselves. Ryanair, Europe's biggest airline, said in January it was suing a passenger for about $15,500 because the individual caused a flight to divert.

"When the public flies, they need to feel confident that they are doing so under safe conditions," said Nicholas J. Ganjei, US Attorney for the Southern District of Texas.

"Given the fact that greater Houston has two major international airports, with tens of millions of travelers a year, the Southern District of Texas is always ready to prosecute those that endanger the safety of passengers."

• Senior airline pilots at Allegiant, Frontier, and Spirit earn up to $270,000 annually.
• But their pay tends to be lower than it would be at Delta, American, and United.
• Some pilot unions are angling for raises to align pay with their mainline counterparts.

Pilots at low-cost Allegiant Air, Frontier Airlines, and Spirit Airlines make less than those at mainline giants, but they can still earn a base pay of up to $270,000 annually.

Pay at the three airlines — the US' longest-standing and most well-known low-cost carriers — starts at about $58 for a first officer at Allegiant. That rises with experience to up to $312 per hour for Spirit's most senior captains.

Business Insider compiled this pay data using airline contracts, verified by the pilots' unions and companies.

US airline pilots commonly fly more than their monthly minimum and can earn additional per diem pay for time away from their base. They can also collect extra money from working specific flights or on holidays, for example.

Altogether, budget airline pilots can easily take home a six-figure salary by their second year on the job.

Their respective labor unions are also working to increase pilot pay at these smaller carriers to better align with compensation packages at mainline carriers American Airlines, Delta Air Lines, and United Airlines.

Base pilot salaries at Allegiant, Frontier, and Spirit

The annual base pay for budget airline pilots is based on their contractual monthly guarantees and seniority. They can vary from about $48,500 to $174,000 for first officers and from about $137,000 to $270,000 for captains.

The rates increase yearly at each airline, up to 12 years of service.

Allegiant Air

• First-year first officer: $57.67 hourly or about $48,500 annually
• 12-year captain: $232 hourly or about $195,000 annually

Frontier Airlines

• First-year first officer: $100 hourly or about $90,000 annually
• 12-year captain: $270.07 hourly or about $243,000 annually

Spirit Airlines

• First-year first officer: $97.15 hourly or about $84,000 annually
• 12-year captain: $312 hourly or about $270,000 annually

Minimum pay is based on the monthly guarantee for those who hold a "line," a pilot who knows their schedule ahead of time. Reserve pilots are those who are assigned as needed.

Allegiant's contract offers a minimum of 70 hours for line pilots and 72 hours for reserve pilots. Frontier's 75-hour minimum and Spirit's 72-hour minimum are the same, regardless of line or reserve.

Most pilots can earn extra money by operating more monthly hours than guaranteed, working holidays, and flying premium pay trips, among other opportunities, depending on the specifics for their airline.

For example, a 12-year Spirit captain who flew 80 hours in December, including on Christmas Day, would earn about $25,000 for the month before taxes and per diem. That includes a contractual $75 for working the holiday.

Spirit's contract guarantees about $2.30 per hour per diem on top of that. Allegiant and Frontier's contracts show hourly per diem is $2 and $2.20, respectively.

The same Spirit captain who maintained an 80-hour monthly schedule all year would earn about $300,000 annually before taxes and any contractual premium pay. At Allegiant and Frontier, that would amount to about $223,000 and $260,000, respectively.

Budget airlines pay less than the Big 3

Despite being among the highest-paid workforce in the US, the budget airline pilots are vying for pay increases.

Allegiant, Frontier, and Spirit's contracts are all up for renewal as of Feburary, meaning the carriers are still paying out previous years' rates as the labor unions actively negotiate pay bumps.

Frontier has been bargaining for more than a year, while Allegiant has been bargaining since 2021. Spirit's contract negotiations are stalled as it addresses Chapter 11 bankruptcy amid revenue and cost problems, with hundreds of its pilots on furlough.

The three budget carriers' current pay rates are well below those offered by Delta, American, and United, all of which saw massive pay bumps amid a pilot shortage during the post-pandemic travel rebound.

A spokesperson for Frontier's pilot union told BI its pilots fly the same Airbus A320 family narrowbody planes as many of the Big 3 pilots but make less.

For example, a 12-year A320 captain at United earns about $373 per hour — $61 more than Spirit, $103 more than Frontier, and $141 more than Allegiant.

United's rate is about the same as American and Delta. Adding in bonuses, holiday pay, per diem, and other extra pay opportunities, many senior mainline pilots can earn half a million annually.

Frontier told BI the company is engaged in contract bargaining.

"We look forward to working toward an agreement that is fair, sustainable, and supports our pilots while ensuring the continued success of our company," the airline said.

Spirit did not respond to a request for comment from BI.

Allegiant told BI it has proposed a "competitive" pay package in its negotiations with the pilot union.

This includes upping first-year first-officer pay to about $114 hourly, which is close to the about $120 an hour new A320 first officers make at the Big 3. Its 12-year captain pay would jump to about $340 hourly.

Allegiant also said it has been building a retention bonus fund to be paid out to pilots after a new contract is signed, which would mean thousands of dollars in extra pay. It said the bonus for senior captains would amount to over $100,000.

• Frontier Airlines revealed a new offer to buy rival Spirit on Wednesday.
• Spirit rejected the offer, calling it "woefully insufficient financially."
• Spirit entered Chapter 11 bankruptcy protection in November last year.

Spirit Airlines has rejected a new takeover offer from rival budget carrier Frontier.

In the statement, Frontier said it had provided a "compelling proposal" to buy Spirit, which filed for Chapter 11 bankruptcy protection in November.

"This proposal reflects a compelling opportunity that will result in more value than Spirit's standalone plan by creating a stronger low fare airline," Frontier chairman Bill Franke said in a press release.

Spirit rejected Frontier's offer, it said in a filing on Wednesday, calling it "woefully insufficient financially." The company said it aimed to exit its bankruptcy proceedings in the first quarter of 2025.

Frontier said a merger would help create "long-term viability" for both airlines to "compete more effectively and enter new markets at scale."

It said a deal could be financed by issuing new Frontier debt and stock.

Frontier and Spirit had previously held talks about merging in 2022, but that deal collapsed when JetBlue made a higher offer to Spirit. The Spirit-JetBlue deal was then called off last year after being blocked by a federal judge.

This is a developing story.

• Breeze Airways reported its first quarterly profit since launching flights in May 2021.
• Breeze contrasts with budget competitors Spirit and Frontier, which are both struggling post-COVID.
• Breeze's niche routes and premium offerings give it an edge over its larger low-cost rivals.

Some budget airlines in the US are struggling, but not Breeze Airways.

The startup carrier on Thursday announced its first quarterly profit since launching in May 2021, a feat its CEO attributed to lucrative first-class seats, a flexible Airbus A220 fleet, and a niche route structure nothing like those used by competing Spirit or Frontier Airlines.

The privately held company said it earned more than $200 million in the fourth quarter of 2024, with an operating margin of over 4%. It said the full-year earnings of more than $680 million represent a 78% increase year over year.

Because Breeze is not publicly traded, only some financials — like those self-reported or those published by the government — are available to compare against competitors. This makes the full scope of the reported profit unclear. Some public figures suggest it's a significant improvement over its third-quarter margin of -21%.

"I think, just overall, there's a stronger environment in the industry," Breeze CEO David Neeleman told Business Insider. "You've seen that from the earnings by other airlines, that, for the most part, they are doing better than they did last year."

Breeze's profitability comes as many budget rivals have failed to turn a full-year profit since the COVID-19 pandemic halted travel and sent shockwaves through the industry. That's a 180-degree shift from before, when some low-cost airlines were growing faster than many mainline competitors.

Now, they face significant headwinds as travelers opt for more premium options offered by mainline carriers and grapple with continued high costs.

Niche routes allow Breeze to avoid tough competition

Neeleman, known for launching five airlines including JetBlue, said Breeze is the sole operator on nearly 90% of its 220 nonstop routes. It avoids major airports to focus on underserved communities, such as Vero Beach, Florida, Mobile, Alabama, and New Haven, Connecticut.

"If you live in Islip [New York] and now you can fly into Vero Beach, you don't have to fly to Orlando and drive two hours, or West Palm and drive two hours," he said. "It makes things easier."

He said Spirit and Frontier can't operate in the same markets as Breeze because they cannot sustain their larger Airbus A320 family airplanes. Breeze's fleet of 33 smaller A220 and 13 regional Embraer aircraft are easier to fill.

Neeleman said the A220 is particularly efficient for short and medium-haul flying, providing Breeze with more flexibility and customers with more route choices.

"I went to our yield management team the other day and asked, what markets do you need more of, and which ones do you need less of," Neeleman said. "They said we just need more planes."

He said that the carrier is phasing out its Embraer fleet, noting that consolidating maintenance and crew members into one aircraft type will simplify the business and lower costs.

Spirit and Frontier, on the other hand, have tried to lure customers away from mainline American Airlines, Delta Air Lines, and United Airlines by offering cheap tickets at major airports in places like New York, California, and the Southeast.

In its earnings call this month, United CEO Scott Kirby said he doesn't "see how it's possible" for low-cost carriers to profitably fly to larger airports because governments have "priced low-cost carriers out of the market."

The fees to fly into large cities are high, but budget carriers are also impacted by congestion, which leads to longer taxi times. This makes turning planes around quickly — one of the keystones of a budget business model — much more difficult.

Struggling to stay afloat in these expensive, oversaturated airports, Spirit and Frontier have adjusted their networks, cut dozens of routes, slashed capacity by flying fewer planes, and withdrawn from some markets.

Breeze has offered premium amenities since its inception

Low-cost carriers have traditionally equipped their planes with no-frills cabins, which have minimal legroom, no recline, and offer no freebies like snacks and WiFi. Even water costs extra.

Breeze, however, launched the business with a different mindset. From day one, it installed extra legroom seats and regular coach ones that recline as part of its strategy to be a "Seriously Nice" airline.

In mid-2022, it introduced first-class loungers.

All of its fleet's economy seats offer more legroom than Spirit and Frontier's basic seats, and free amenities like movies on a personal device. Customers can bundle their fares to include perks like food and bags.

Neeleman said he recognized the evolution of premium preference and approached it like a math equation.

"When you add first class on an A220, you only lose one seat per row, so we need about 50% more for the average fare for first class," he said, noting A220s only have five seats across in coach whereas A320s have six. "If we can get 60 or 70%, great, anything more than 50 it's a net positive for us."

Spirit and Frontier have had to play catchup there, too.

Mainline carriers' cheaper basic economy fares, which often come with perks like a free carry-on, WiFi, drinks and snacks, and in-flight entertainment, have further poached business.

Budget carriers have added some similar amenities to remain competitive, like adding new business-class-like seats, offering new bundling options, and waiving most change and cancel fees.

• Khabib Nurmagomedov says he was removed from a Frontier Airlines flight after a dispute.
• The former MMA star said the crew was rude and questioned his seating in the exit row.
• Frontier Airlines said Nurmagomedov ignored questions about whether he would assist in an emergency.

Former Russian mixed martial arts star Khabib Nurmagomedov was removed from a Frontier Airlines flight following a dispute with crew.

The UFC lightweight champion, who retired with a perfect 29-0 record, wrote in an X post on Monday that he resorted to flying with another airline after being deplaned.

In a video widely circulated online, Nurmagomedov is seen sitting in the cabin's emergency exit row and talking to a crew member.

The female crew member can be heard in the video explaining to him that flight attendants were "not comfortable" with him sitting in the exit row. She can then be heard saying he would have to either switch his seat or he would need to get off the plane.

"It's off of their [the flight attendants] judgment," the staff member can be heard saying.

"It's not fair," Nurmagomedov said, per the video, before choosing to be escorted off the plane.

Initial reports suggested that the incident took place on an Alaska Airlines flight, but Nurmagomedov later clarified on X that it occurred on a Frontier plane.

"Lady who comes to me with questions was very rude from the very beginning, even though I speak very decent English and can understand everything and agreed to assist, she still insists on removing me from my seat," he said in an X post.

"What was the base for that, racial, national or other one, I'm not sure," Nurmagomedov added.

In the video circulated online, the staff member can be heard saying that the crew's request is "not about the language" after Nurmagomedov says he speaks English.

The 36-year-old fighter said that after two minutes of conversation, the airline staff member called security, and he was "deplaned" from the aircraft.

After an hour and 30 minutes, Nurmagomedov, nicknamed "The Eagle," said he boarded a different flight and flew to his destination.

He wrote that he did his best to "stay calm and respectful," adding, "but those crew members could do better next time and just be nice with clients."

Frontier Airlines said in a statement sent to Business Insider that Nurmagomedov was "asked multiple times if he was willing and able to assist in the event of an emergency. According to the flight attendant, Mr. Nurmagomedov did not respond, despite repeated attempts, which placed him in non-compliance with FAA requirements."

"As a result, he was asked to move to a different upgraded seat which he refused to do. Therefore, in accordance with airline and FAA policy, he was asked to deplane. The decision to deplane the customer was in no way related to his ethnicity and we have refunded him and his traveling companions for their flights."

Frontier said the incident took place on a plane due to fly from Las Vegas to San Francisco. Multiple media reports had previously reported the plane was bound for Los Angeles.

• Frontier Airlines' annual all-you-can-fly flight pass called "GoWild!" costs $299 through Wednesday.
• I bought the seasonal subscription in 2023 and used it to crisscross the US.
• While it has limitations, I think GoWild is good for flexible travelers with a spontaneous spirit.

Frontier Airlines' all-you-can-fly pass is an interesting concept that comes with a major catch.

Called "GoWild!," the subscription-based program gives members exclusive access to heavily discounted flights — $0.01, plus taxes and fees.

On Tuesday, Frontier announced the annual pass option for just $299, valid for travel between May 1, 2025, and April 30, 2026. This is GoWild's lowest price yet, which goes up to $499 after December 18.

Frontier also sells seasonal and monthly passes. Be aware that GoWild will automatically renew unless you cancel.

Bookings can be made the day before for domestic flights or up to 10 days in advance for international flights, with the option to pay an early booking fee for dates beyond that.

Luggage, reserved seats, snacks, and drinks still cost extra. New this year is the ability to earn Frontier Miles when booking seats and bags with a GoWild ticket.

Hypothetically, GoWild means one could wake up one morning and, on a whim, go hop across Frontier's route map for as low as $15 per leg with just a personal item.

It sounds too good to be true, so I decided to test it out using Frontier's $299 unlimited fall and winter pass in 2023.

I visited three cities over five days, spending $60 total on last-minute flights. There were early mornings and late nights, some moments of uncertainty, and hours of flying on Frontier's uncomfortable planes.

After using the pass, I found that GoWild can be extremely frustrating to use if you aren't flexible or willing to get creative. But for others, it may be a golden ticket.

Over 4,000 miles in five days for $60

Frontier's GoWild pass offers unlimited flights across its entire network, which touches the US, Mexico, and the Caribbean.

I started my 2023 trip in Austin after a friend's wedding. Then, I flew to Las Vegas and Orlando. I took the Brightline train to Miami to catch a flight to Philadelphia, where I then headed home to Connecticut via Amtrak.

Thanks to the early booking option, I booked my first leg to Vegas about a week in advance to ensure I'd at least get out of Texas. It was an extra fee, but it was worth the peace of mind.

The other two legs were booked at the lowest rate, so I paid $15 to Orlando and Philadelphia and $30 to Vegas for a total of $60 on three flights. Without the pass, the flights would have cost about $260.

I personally enjoyed piecing together the trip and having various options to work with, but I also loved that I could potentially switch up plans on a whim.

But I realized the too-good-to-be-true pass has a few pain points that make it only really useful for certain lifestyles.

The "unlimited" flight pass has its limitations

One of the biggest concerns about GoWild is actually getting anywhere at all.

Not only are there blackout dates, but it's not uncommon for Frontier to have nonstop flights listed but no GoWild seats available for purchase.

This could force people to ditch paradise destinations like Cancun for a completely different city in a random place, like Ohama, for example. Not that a spontaneous trip to Nebraska can't be fun, but it's not the beach getaway one may have expected.

Plus, last-minute GoWild seats to the Caribbean are difficult to snag, as a Wall Street Journal reporter who tested the pass in June 2023 found.

Travelers also have to consider last-minute hotels and activities may be more expensive or sold out.

Frontier doesn't have the best flight schedule

I didn't have many options for leaving Austin except a 10 p.m. flight to Las Vegas. I wasn't thrilled about the late departure, but that's part of the experience.

After a full day of touring around Las Vegas, I was hoping to sleep in the next morning and then take a red-eye flight to Florida that night.

Surprisingly, on the one day that I wanted to fly to Orlando, Frontier had only a 6:15 a.m. flight — nothing later. I sucked it up and trudged through another sleepless night after leaving Vegas' famous Sphere at 11:30 p.m.

After a full day exploring Miami with a friend, I switched my next day's Philadelphia flight from 6:10 a.m. to 1:11 p.m. to get more sleep.

There was no cancellation fee, but I also lost a day of exploring Philadelphia.

I restricted myself to a personal item

Because I was trying to book the cheapest GoWild flights possible, I forwent a carry-on bag, which cost over $60 for each leg.

I brought a regular-sized backpack with a laptop pocket in the back. I packed it so that nothing bulged out, and it fit perfectly inside Frontier's size checker.

I'll admit that I had to pack and repack several times, and I had to ditch a lot of outfits that I wanted to bring with me.

Bringing only a personal item ended up being extremely challenging, so I recommend just paying for the carry-on if you think you'll need it.

If you do opt for the free option, be warned: an agent visually checked every personal item during boarding during all three flights.

They forced those that looked too big into the size box and charged extra for the bags that didn't fit — likely part of Frontier's controversial bag incentive program.

Finding GoWild seats is a lot of tedious guess-and-check

The process of searching and booking GoWild seats is a cumbersome task. The flights can only be bought on Frontier's website, not its app, and customers have to check each one by one.

Fortunately, some computer-savvy individuals independent of Frontier launched "The 1491 Club," which has a monthly fee but lists every single GoWild seat available.

It saved me a lot of effort when trying to Tetris together my GoWild itinerary.

Getting home proved tricky once I realized that using Frontier isn't ideal for those of us living in no-man's land Connecticut.

When I bought the pass, I initially planned to use Stewart International Airport in New York, 40 minutes away, but Frontier has sadly since shut down operations there.

I ended up taking a two-hour Amtrak home from Philadelphia for $40 and Ubering home from the station.

I could save time by driving to a New York City airport, but then I'd be locked into returning to the same airport, which would make using GoWild even tougher.

My advice is that if you don't live near a Frontier hub or focus city, GoWild will be nearly impossible to use unless you're willing to add drive time, parking fees, rideshare trips, or train fares.

GoWild is most realistic for those with remote or flexible jobs

Despite the less-than-favorable flight times, I managed to check off my list of cities to hit and things to do.

While I had a good experience, there are still a lot of limitations to the "unlimited" flight pass, and the costs can add up.

Personal items that bulge just a little too much may be subject to Frontier's hefty carry-on fee. You also have to pay extra for more luggage or legroom.

There's also no guarantee you'll get to your desired destination until the day before unless you fork out even more money for an early booking fee. This uncertainty can be stressful.

But for those who love to travel on a whim, the concept of not knowing your next move could be a dream adventure.

Spontaneous digital nomads or freelancers would likely get the most out of the pass. I have a remote job, so I could make it work.

I'm sure there are a lot of people who could make weekend getaways via GoWild work, too. But it'd come with risks like getting stuck somewhere and missing work — at that point, I don't think it'd be worth the hassle.

• A Spirit executive blamed mainline carriers for some of its financial woes during a Senate hearing.
• He said some airlines "manufactured" a pilot shortage and that others want Spirit "out of business."
• Spirit recently filed for Chapter 11 bankruptcy and is revamping its business to earn more revenue.

A Spirit Airlines executive blamed competitors for some of its financial and operational woes during a congressional hearing on Wednesday, pointing to factors including pilot staffing and limited airport access.

Chief commercial officer Matthew Klein told a Senate subcommittee that Spirit hasn't been able to grow because the mainline airlines "manufactured" a pilot shortage during the pandemic and "poached" Spirit's pilots.

When flying came to a halt during the COVID-19 pandemic, carriers trimmed pilot headcounts to cut costs.

"Some of our legacy carrier competitors basically paid the most senior pilots to retire early," he said. "That, in fact, caused a pilot shortage in the industry, and then they turned around and hired a lot of our pilots."

When flying ramped back up after the pandemic, airlines found themselves without enough pilots. This prompted large pay raises across the industry to fill the gaps.

Executives from Delta Air Lines, American Airlines, United Airlines, and Frontier Airlines also appeared at the hearing to answer questions about a November report covering what the committee said are excessive charges for seats and bags.

Spirit pilots are not paid as much as mainline pilots and could have left the company for better working conditions. Spirit's published pay scale shows that its Airbus A319 and A320 first officers and captains make between $97 and $312 per hour, depending on seniority.

Pay rates seen by Business Insider for American, Delta, and United show pilots flying the same Airbus aircraft make between $116 and about $360 per hour, depending on seniority and not including bonuses.

A Spirit spokesperson said they did not have anything to add about pay differences between airlines.

Klein also said pilots left partly because other airlines publicly said they were "gunning" for Spirit and" trying to put us out of business."

United CEO Scott Kirby said in a June podcast that carriers like Spirit and Frontier are "going out of business" because of their "fundamentally flawed" business models and poor customer service.

Spirit slams mainline 'dominance'

In his opening remarks, Klein encouraged the subcommittee to focus on the issues that he said are "by far the most impactful to consumers." He said this included mainline hub and slot and pricing "dominance" and mainline loyalty and credit card programs.

Klein pointed to how the mainline dominance has impacted Spirit.

He said Spirit struggles to secure gates at major airports, suggesting this blocks Spirit's access to routes and markets. He said when Spirit does get gates, they are often at the far end of terminals.

"This makes it difficult to provide a good guest experience and makes it difficult to operate efficiently and effectively," Klein said. "It raises our costs, which then, of course, makes it harder for us to be profitable, and without being profitable, we certainly can't grow."

Klein's subcommittee comments come after Spirit filed for Chapter 11 bankruptcy in November. The airline saved cash by furloughing pilots and selling $500 million worth of aircraft.

Budget airlines have been facing tough competition from mainline carriers amid rising costs across the industry.

Along with offering more premium seats and more inclusive fare bundles, Spirit and Frontier launched programs in 2022 that incentivized employees with bonuses for selling upgraded seats and catching oversized personal items.

Klein told the subcommittee that Spirit suspended the program on September 30. Instead, it has added more employees around the gate area to ensure customers comply with bag rules.

Frontier's SVP and CCO Robert Schroeder would not commit to ending its incentive program during the hearing.

• Frontier Airlines plans to introduce "first-class" seats in 2025.
• The move marks a shift from Frontier's no-frills model amid competition from mainline carriers.
• Spirit Airlines has made similar changes to earn more revenue as it struggles to turn a profit.

Frontier Airlines is continuing to break from its classic budget business model as it chases more premium customers.

The airline will introduce "first-class" seats in the first two rows of the cabin starting in 2025, it said on Tuesday. These will come at an add-on fee, though Frontier did not disclose pricing.

Renderings of the new first-class show large loungers with headrests, spaced two across with larger armrests. They appear to resemble Spirit Airlines' "Big Front Seat," which is comparable to mainline domestic first class but without some amenities, like free alcohol or meals.

Frontier also announced new perks for its status members, hoping to create more value for the airline's most loyal customers. A bonus mileage offer for new credit card applicants suggests Frontier also hopes to poach customers from competing airlines.

From early 2025, Frontier's Elite Gold members and above can receive free upgrades to the new first class and its "UpFront Plus" seats, subject to availability. The latter is Frontier's new business-class-like option that guarantees an empty middle seat — similar to what many mainline European carriers offer on shorter flights.

Frontier will also offer free unlimited companion travel for its highest-elite-status holders, meaning friends and family can tag along on flights. Further, starting in mid-2025, customers can buy seats, bags, and other ancillaries with miles.

"The New Frontier is our promise to deliver exceptional value with unbeatable flexibility," Frontier CEO Barry Biffle said in a press release. "As we continue to innovate and elevate the customer experience, we're proving that premium travel doesn't have to come with a premium price tag."

Shares fell about 5% following Tuesday morning's announcement.

Frontier's latest changes represent a departure from its traditional no-frills strategy. Its planes only offered economy, and everything besides an unassigned seat and a personal item cost extra.

Budget airlines like Spirit and Frontier — neither of which have turned a full-year profit in 2019 — have faced tough competition from mainline carriers that offer more premium options, like assigned seats and free carry-on bags.

Low-cost airlines have since had to adjust their business models to keep up with changing industry trends and target more premium customers who are willing to pay more for comfort and convenience.

Beyond Tuesday's changes, Frontier has also largely eliminated change and cancel fees, now allows a free checked bag when customers book with their Frontier credit card, and has restructured its fare classes to offer customers more choice and flexibility.

"Instead of just nickel and diming, airlines like Spirit and Frontier are doing more bundling, which is in line with what we at Breeze do, and we've found success," JetBlue Airways founder and current CEO of Breeze Airways, David Neeleman, told Business Insider in November.

Spirit has made similar changes to earn more revenue as it battles financial problems that led to a Chapter 11 bankruptcy filing in November.

This year, the airline has announced priority boarding for more eligible customers, seat selections with the middle seat blocked, the elimination of most change and cancel fees, and the option to book bundled fares.

• A Senate report found that Frontier and Spirit paid staff $26 million for fees they charged to passengers for bags and seats.
• The budget carriers say the incentives ensure customers are treated "fairly" and "equally."
• The Senate report said airport agents could "abuse" the program to earn more in commissions. The airlines denied abuse.

A Senate subcommittee report published on Tuesday revealed publicly for the first time how budget carriers Frontier and Spirit incentivized staff to charge passengers extra fees.

The report, viewed by Business Insider, revealed that between 2022 and 2023, the two airlines paid workers $26 million in bonuses "to catch passengers allegedly not following airline bag policies, often forcing those passengers to pay a bag fee."

The incentive programs applied to premium seats and carry-on bags that exceeded the personal item size allowance. Frontier paid the most commissions: about $18.8 million, according to the congressional report.

For domestic flights, Frontier workers earned $10 for each oversize carry-on bag purchased at the gate or online within 60 minutes of the passenger's departure time, $3 for carry-ons bought at the airport ticket counter, and $3 for selling extra legroom seats.

The airline's commissions were smaller for international flights: $1 for bags charged at the gate or online, and $0.50 for those purchased at the ticket counter.

Spirit employees earned $5 for charging oversize carry-on bags at the gate. They also earned $5 for selling the Big Front Seat, $4 for charging overweight checked bags, and $2 for selling exit row seats. The report did not say whether bonus amounts varied between domestic and international flights.

Certain managers at both airlines also earned a commission if their airport or region met a specific monthly revenue goal from ancillary fees.

Frontier and Spirit employees were ineligible for the bonuses, however, if customer experience ratings declined or the airlines received a certain number of complaints.

Data from the Department of Transportation and analyzed by the subcommittee showed both Frontier and Spirit's baggage complaints increased after the incentive programs began.

According to the report, Frontier adjusted the structure of its incentive program in October 2023 to try to collect more bags while limiting the number of passenger complaints.

Questions over whether the programs encourage abuse

Carry-on bags are not included in basic fares for Frontier or Spirit. They must be purchased as an add-on and fit into the carriers' personal item size checkers stationed at airports.

The report said the incentives "may inappropriately encourage abuse of discretion" — meaning gate agents might be prone to unfairly categorize items as too large in order to collect higher bonuses.

TikTok videos that surfaced in 2022 showed customers being charged for personal items that appeared to fit into the size checker. The report discussed these instances.

When asked about the videos, Frontier's vice president of pricing and revenue management told the subcommittee that it's possible a bag fitting in the size checker was denied for reasons other than its size. It could contain a lithium battery, for example, he said.

The report said both airlines denied that the programs are being abused.

Spirit and Frontier told the subcommittee that the programs were designed to maintain compliance with baggage policies and ensure that customers who pre-paid for luggage were treated "fairly."

The Frontier executive told the subcommittee that the airline did not want customers "to take more services than they have paid for."

The report said both airlines started the programs to boost ancillary revenue. It said Frontier projected it would earn at least $40 million in fees in the first year. The report also said Spirit's ancillary revenue increased during the program.

In statements to BI, both airlines emphasized the goal of treating guests "fairly" and "equally." Spokespeople for both airlines said that the budget business model unbundles fares and increases people's access to affordable flights.

"We respectfully disagree with numerous statements and conclusions contained in the report," Spirit told BI. "With that in mind, we believe it's time to come together and discuss meaningful initiatives that would even the playing field between larger and smaller airlines to benefit all travelers."

• Part of a Frontier Airlines plane caught fire upon landing in Las Vegas last month.
• 19 passengers suing the airline say they were kept on a smoke-filled plane for nearly an hour.
• The NTSB's report said firefighters told the pilots the smoke had been eliminated.

A group of Frontier Airlines passengers say they were kept on board a smoke-filled plane for nearly an hour in a lawsuit filed last week.

The 19 plaintiffs were among the 197 people on board Flight 1326 from San Diego to Las Vegas on October 5.

According to the National Transportation Safety Board's preliminary report into the incident, the Airbus A321 was arriving at Las Vegas' Harry Reid International Airport when it suffered a brake fire. Photos and video of the incident show smoke and flames coming from the aircraft.

The flight's first officer told investigators that, shortly before descent, the cabin crew detected an odor in the cabin, which was then smelled in the cockpit, too.

The report added that after the pilots declared an emergency, their display screens were limited, and they had some difficulty communicating with air traffic control.

Friday's lawsuit, filed in the Nevada District Court, says that the cabin was filled with smoke and became "extraordinarily hot."

It adds that passengers were also subjected to "the violent impact of the landing" after tires exploded and landing gear collapsed.

Emergency services came onto the runway to extinguish the fire.

The 190 passengers and seven crew were evacuated via the air stairs and took a bus to the terminal, a Frontier spokesperson previously told Business Insider. They added that nobody was injured.

The lawsuit says that before evacuating, passengers were "held on a sweltering smoke-filled aircraft for nearly an hour."

The NTSB's report said the pilots began the emergency evacuation checklist but firefighters told them the fire was extinguished and the smoke was eliminated.

Frontier Airlines did not immediately respond to a request for comment from BI about the lawsuit.

The plaintiffs accused the airline of negligence and asked for at least $15,000 in both general and special damages, plus lost wages and attorneys' fees.

NTSB and Federal Aviation Administration investigations into the incident are ongoing.