• 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.

• British Airways unveiled a new first-class suite on Monday.
• Other airlines like Lufthansa and Qantas are also taking in-flight luxury to new levels.
• Premium cabins have been more profitable for airlines since the pandemic.

Airlines are doubling down on their most expensive tickets as premium cabins become more lucrative.

On Monday, British Airways became the latest carrier to unveil an upgraded first class, joining the likes of Lufthansa and Qantas in launching new offerings.

The UK flag carrier previously rolled out a new first class in 2020, but it was a minor update in adding sliding doors to the suites.

The latest version is a more obvious step forward — especially given that it's coming to Airbus A380 jets that haven't been updated since BA's first was delivered in 2013.

While several global airlines have been upgrading their first classes, the opposite trend has been observed in the US.

Delta Air Lines and United Airlines cut first-class years ago, while American Airlines followed suit in 2022. Instead, they are focusing on promoting business class.

Since the pandemic, premium cabins have been more profitable as travelers appear to be more willing to pay extra for luxury.

"Consumers are continuing to prioritize premium experiences," Delta CEO Ed Bastian said in its third-quarter earnings call. The airline said premium revenue growth outperformed the main cabin by nine percentage points.

American reported premium revenue up 8% year over year, and United also said its premium cabins outperformed economy.

By contrast, profits have fallen at budget airlines which are now pivoting to include more premium options as a result.

A new first-class

Coming in 2026, British Airways' new first class has a large wall featuring the airline's logo. The curved design of the suite and lamp are supposed to be nods to Concorde — arguably the heyday of luxury flying.

It's a plush seat at 36.5 inches wide — more than a foot wider than British Airways' current first-class seats, per SeatGuru measurements.

The seats lie flat to 6 feet 7 inches and have a larger TV at 32 inches with 4K resolution.

Red leather provides a pop of color inside the cupboard, drawers, and closet. Coupled with the wall's gray cushioning, it looks more modern than the airline's older seats. A touchscreen control panel on the door also lets flight attendants adjust the seat and lighting, among other things.

On some jets, BA's first class suites don't look especially unique compared to business class, but the latest design is a more obvious upgrade.

It's part of a $9 billion investment to transform the airline, with other changes including new short-haul seats and a new app.

BA's ambitions are apparent in the sense that the new suites look more like Emirates' first-class than anything the UK flag carrier has previously used.

Also, the option to fully remove the privacy divider in central suites — bringing couples closer together — is reminiscent of Qatar Airways' award-winning QSuite.

BA isn't the only airline to recently unveil first-class seats that take on-board luxury to a new level.

Lufthansa's new Allegris first class debuted in November. It includes a larger "Suite Plus" with a double bed for couples. Passengers can also find extra privacy as the suites' walls reach the ceiling.

Until more planes are delivered, it will only be open by invitation to loyal customers of the German flag carrier.

Australia's Qantas is set to launch a new first class when it begins the world's new longest flight in late 2026 — 21 hours between Sydney and London — known as "Project Sunrise." The suites have both a reclining lounger and a separate twin bed.

Air France, Air India, Cathay Pacific, Singapore Airlines, and Swiss International Airlines are among the other carriers to have announced upgrades to their first-class offerings.

After his predecessor said first-class wasn't necessary given its QSuite business class, Qatar Airways CEO Badr Mohammed Al Meer told CNBC in March that the airline's first class is here to stay.

At Monday's unveiling event, Calum Laming, BA's chief customer officer, told reporters, "First is a really important cabin for us, and we are, as always, committed with our incredible colleagues to making this as premium and as special as possible."

Among the flurry of new first-classes, British Airways is unique in upgrading those on its Airbus A380s.

They may not have a shower and bar like Emirates', but it's another sign of the superjumbo jet's recovering post-pandemic popularity.

• British Airways unveiled its new first-class cabin on Monday.
• Business Insider was among the first to see inside the upgraded suite.
• It has a sleek, modern design and a touchscreen for flight attendants.

British Airways is investing billions to transform the UK flag carrier.

After unveiling its updated short-haul interior in March, BA showed off its new first-class cabin at its London headquarters on Monday.

Set to debut on the Airbus A380 in 2026, it's an impressive upgrade from the current premium products — especially on the superjumbo jet, which has an older design.

The airline said the new first-class's modern curves and ambient light nod to Concorde, while the materials and design come from different parts of the UK.

Business Insider was among the first people to see inside the new suite. It has plenty of stowage space, a huge seat, and touchscreen controls. In the center, there's the option to remove the divider so couples or friends can sit together.

Here's what British Airways' new first class looks like.

British Airways unveiled its new first-class suite on Monday.

"First is a really important cabin for us, and we are, as always, committed with our incredible colleagues to making this as premium and as special as possible," said Calum Laming, BA's chief customer officer.

"And in fact, our ambition throughout this whole transformation journey is to take British Airways to the next level and to make it really special," he added.

The new exterior looked sleek with its privacy doors and mood lighting.

The concept was first developed by Tangerine Design Consultancy, a London-based firm that has worked with Apple and Toyota and was where Apple legend Jony Ive started his career.

It was brought to life with the help of Collins Aerospace.

There's also a touchscreen control panel that makes flight attendants' jobs simpler.

The panel's options could let a flight attendant adjust the seating position without having to reach into the suite.

There are also mood lighting options including Relax, Dine, and Cinema.

And a closet with an eye-catching red interior.

The color red features as a tasteful splash of brightness in details throughout the suite.

A carry-on can be wheeled into the bottom of the closet, while the top has space for pajamas.

The inside was even more impressive and modern.

The seat is ultra-wide at 36.5 inches and can lie flat with a bed length of 6 feet 7 inches.

British Airways describes the 60-inch curved wall as providing a "cocooned" space that improves privacy while still feeling spacious. The airline also said soft paneling inside the seat helps absorb sound.

There's enough space for two, with a movable ottoman that can work as a second seat.

Note the seatbelt on top, while there's some more storage space underneath too.

Also, that TV is 32 inches and has 4K resolution.

The leather for the ottoman, seat surround, cupboard interiors, and headrest comes from Muirhead in Scotland. It's the same type of luxury leather that featured on Concorde and the Orient Express.

Couples can find more benefits in the center suites.

The dividers can be fully opened to create a shared space for dining or a feeling like a double bed when sleeping.

It's a similar feature to Qatar Airways' QSuite, which was named the world's best business class at this year's Skytrax awards.

The console has several seat control buttons and a wireless charging port.

There are more charging options and a control panel next to the seat.

It features an international charging port, plus USB-A and USB-C outlets.

The wireless control tablet includes a do-not-disturb option to notify the crew if you want to sleep or enjoy privacy the whole journey.

Underneath, there's some more stowage space.

It's a good size for a handbag or purse, while another drawer opens up beneath the seat-control buttons — with the same red interior.

British Airways said the red leather with cream stitching is supposed to reflect a bespoke Savile Row suit.

Above that, there are two cupboards with amenities and a minibar.

It appeared elegant, with the left cupboard swinging open while the right one had a sliding door.

By the windows, there was a device holder too.

It means passengers can prop up their phone or tablet in flight.

As well as the lamp near the TV, there's a reading light over the passenger's shoulder.

British Airways' new first-class is set to launch on its Airbus A380 jets in 2026.

British Airways has 12 Airbus A380s, making it the third-largest operator of the type.

The new first-class cabin is set to have 12 seats instead of 14. But with the same number of flight attendants, customers should be able to enjoy more attention.

• Delta Air Lines is focusing on premium cabins to boost revenue and outpace economy sales.
• The premium demand is driven by millennials willing to spend more for an elevated experience.
• Delta's president suggested budget carrier Spirit failed because it was too focused on low fares.

Delta Air Lines believes a premium-focused strategy is the secret sauce to success, as outlined during its Investor Day in Atlanta on Wednesday.

President Glen Hauenstein said that premium demand is soaring thanks to millennials willing to pay more for an elevated experience. As such, premium seats — currently about 30% of Delta's inventory — will be a majority focus of any added capacity next year.

By 2027, the airline expects to make more money from premium seats than those in economy.

Hauenstein said focusing on the premium market will help Delta win against budget carriers that depend on low fares to lure in customers.

"I think [post-pandemic demand] had a very different impact on the carriers that were supplying premium products and services, which had a little bit of a downdraft, versus those who were just focused on price that had an incredible cliff to fall off of," he said. "I think we've seen that manifest itself in the bankruptcy we saw filed this week."

Hauenstein is referring to Spirit Airlines' filing for Chapter 11 bankruptcy on Monday. The low-cost airline has not posted a full-year profit since 2019 and has been forced to lay off staff and sell $500 million worth of planes to stay afloat.

United Airlines CEO Scott Kirby said in a June podcast that passengers prefer experience over low fares and that budget airlines may go out of business without making quality changes.

Breeze Airways CEO David Neeleman gave Business Insider a similar take in November, saying low-cost carriers should stop nickel-and-diming their customers.

Spirit and Frontier have bent to modern flyer expectations. Both overhauled their business models this year to offer more premium perks, such as extra legroom and business-class-like seats. They've also dropped most change and cancel fees.

Delta's presentation on Wednesday set the tone for the coming months, as airlines continue to struggle with high costs driven largely by inflation and labor, which have weighed on profit margins.

While the investments may take years to show full potential, at least in the near term, Delta CEO Ed Bastian has welcomed president-elect Donald Trump as a "breath of fresh air" as opposed to what he described as government "overreach" under the Biden Administration.

Delta's stock price was down about 2% after Wednesday's Investor Day and is up about 57% year-to-date.

Delta is doubling down on premium seats

Delta's premium cabins, including premium-economy upgrades, Delta One business class, and domestic first class, have long been profit drivers. So far, adding more of the expensive seats has been a boon to its bottom line, and it's showing no signs of letting up.

Delta said its Airbus A350-1000 aircraft will be introduced with about 50% premium seats, for example, while the airline plans to add lie-flat business class to A321neo jets.

This all comes after Delta had higher-than-expected earnings in the third quarter, largely anchored by premium seats, even though it was dinged by a costly CrowdStrike outage.

From July through September, Delta generated $5.3 billion in premium revenue compared to $6.3 billion for the economy cabin despite premium taking up less cabin real estate.

Hauenstein said Delta's biggest opportunity to add premium products and services is in the international market, where he said there is short supply but high demand.

He said that increase would come from retiring Boeing 767s, adding new A350-1000s, and reconfiguring existing A350-900s with more Delta One seats.

While executives didn't further discuss the previously hinted-at "business-class-lite" product that would unbundle business class, letting flyers buy only the seat but not other perks like lounge access, Hauenstein said there's revenue opportunity in segmenting premium economy and domestic first.

"That's where a huge revenue base is, and segmentation of that revenue base would potentially drive a significant improvement to the bottom line," he said.