Frontier Airlines has come to the same conclusion as many of its peers: Premium is where the money is.

Frontier, the ultra-low-cost carrier owned by Frontier Group Holdings (ULCC), on Tuesday announced a slew of premium offerings it will be introducing in 2025—including first-class seats and free companion tickets—as part of "the next phase of its game-changing transformation."

The changes include:

• "Luxurious, spacious seats in the first two rows of the aircraft, available late 2025."
• Allowing Platinum and Diamond Elite members to "fly with a companion at no extra cost on any Frontier flight, starting mid-2025."
• Free "seat upgrades for Elite Gold members and above on every flight," starting in early 2025.
• Being able to redeem miles for bundles, including "baggage, seating upgrades, and more, launching mid-2025."
  

"We've listened to customers, and they want more—more premium options, like first class seating, attainable seat upgrades, more free travel for their companions, and the ability to use miles on more than just airfare," Chief Executive Officer (CEO) Barry Biffle said. "These changes represent an exciting new chapter in our transformation into The New Frontier."

Frontier Is Latest Airline To Add Premium Offerings

Frontier, shares of which were recently down more than 5%, is the latest airline to come to the conclusion that customers are willing to pay more for a better flight experience.

According to presentation materials for Delta Air Lines' (DAL) Investor Day last month, 85% of its passengers sitting in its lucrative premium seats intend to repurchase those seats. "What we've garnered from ... years of experience with these premium products is once people are flying in them, they tend to not go back," Delta president Glen Hauenstein said.

Southwest Airlines (LUV) in July said it would abandon its longtime policy of open seating, announcing plans "to assign seats and offer premium seating options to meet evolving Customer preferences and increase revenue opportunities."

Even rival ultra-low-cost carrier Spirit Airlines (SAVE) got into the act earlier this year, introducing a "Big Front Seat Bundle" that features "more comfort, more convenience and extra legroom." Spirit filed for bankruptcy protection last month after merger talks with Frontier collapsed.