Budget airlines are struggling. Their solution? Go upscale

Americans love a bargain when they fly.

But recent changes at some airlines suggest that ultra-cheap flights are losing their appeal.

The Wall Street Journal reported Wednesday that low-cost carrier JetBlue Airways will roll out first class seating on domestic flights in 2026. It follows a similar announcement from another budget carrier, Frontier Airlines, which plans to debut premium seating next year.

The upscaling comes as no-frills airlines face headwinds: Industry leader Spirit has reportedly lost more than $2.5 billion since 2020, and the company filed for bankruptcy protection last month. JetBlue, while popular, has struggled to turn a profit since 2019. So some carriers are setting their sights on customers willing to pay more, says Kyle Potter, executive editor of aviation website Thrifty Traveler.

"They're trying to have it both ways," Potter says.

The journalist spoke with host A Martinez on NPR's Morning Edition about what the shift says about Americans' travel preferences – and the future of flying on the cheap.

This interview has been edited for length and clarity.

Interview highlights

A Martinez: Why are airlines known for low fares suddenly embracing pricey add-ons?

Kyle Potter: In short, because they need to. Budget airlines like Frontier and Spirit are really struggling to make ends meet right now, so they're trying to have it both ways. They want to be a budget airline that will sell you a ticket across the country for $19, but they also want to sell you a first class seat with more space and maybe some additional amenities.

It really is part of this longer transformation that we've been seeing across the airline industry over the last couple of years. Of every airline, even the premium airlines are getting more premium. And now the budget airlines are getting a little bit more full service.

Martinez: Who wants to buy a first class seat on a budget airline?

Potter: It's going to be a tough sell, and that's the rub for airlines like Frontier and Spirit. They have spent the better part of the last decade or more earning a reputation of basically punishing travelers with next to no legroom, slim seats with very little padding, and no extras. You pay more for everything. And now they're going to try and upsell people on these first class fares. It is not going to happen overnight — not after Spirit, in particular, has been the punchline on late night talk shows for years about how awful it can be to fly these kinds of airlines.

Martinez: What does Spirit Airlines' bankruptcy filing tell us about challenges low-cost airlines are facing?

Potter: First and foremost, their costs are just a lot higher. Coming out of the worst of the pandemic, pilot labor groups negotiated new, more expensive contracts. These budget airlines really rely on low costs. And when those costs get higher, they need to make more money. Also, as more Americans are traveling in record numbers and more are willing to spend more for a premium experience, or at least a bigger seat, the Spirits and Frontiers of the world do not have a product to meet that demand.

Martinez: What options remain for people hunting for bargain fares?

Potter: While the broader industry is skewing more towards premium travel, there's still always going to be a place for cheaper fares. Spirit, Frontier, Allegiant, newer carriers like Breeze and Avelo – they're still going to be selling them. And full-service legacy carriers like American, Delta, and United are still selling cheap tickets – they call them "basic economy" fares. If budget is your No. 1 concern, there still are going to be products out there. I just think everything is going to skew a little bit more towards premium as we get into 2025 and beyond.

The audio version of this story was produced by Julie Depenbrock and the digital version was edited by Obed Manuel.