Revealing the Pay Secrets: How Spirit and Frontier Workers Earn Extra Cash

Spirit and Frontier Airlines have been making headlines for their unique incentive programs that reward employees for charging passengers extra fees for baggage and seat upgrades. According to a recently published Senate subcommittee report, these programs resulted in $26 million in bonuses for airline workers between 2022 and 2023. Both airlines claim the incentives are designed to enforce compliance with their baggage policies and ensure fair treatment of all passengers. However, the report has sparked concerns about potential abuse and fairness.

Incentives Driving Fees

The report, shared by Business Insider, revealed that Frontier paid the majority of the bonuses, totaling $18.8 million. Frontier employees earned $10 for each oversized carry-on bag charged at the gate or online just before departure, $3 for bags purchased at ticket counters, and $3 for selling extra-legroom seats on domestic flights. For international flights, commissions were lower: $1 for carry-ons at the gate and $0.50 at the ticket counter.

Spirit Airlines followed a similar structure. Employees earned $5 for charging oversized carry-on bags at the gate, $5 for selling the Big Front Seat, $4 for overweight checked bags, and $2 for exit row seats. Managers at both airlines were also eligible for bonuses if their airport or region met specific monthly revenue goals tied to ancillary fees. However, these bonuses were contingent on maintaining positive customer experience ratings and avoiding excessive complaints.

Passenger Complaints Spike

Despite these efforts to tie incentives to customer satisfaction, complaints about baggage policies surged following the introduction of these programs. Data analyzed by the subcommittee from the Department of Transportation revealed a noticeable increase in baggage-related complaints against both airlines. In response, Frontier adjusted its incentive program in late 2023 to collect more fees while aiming to limit customer dissatisfaction.

Gate Agents Under Scrutiny

The Senate report raised concerns that these incentives might encourage gate agents to misclassify personal items as oversized bags to boost their commissions. Videos shared on TikTok in 2022 showed passengers being charged for bags that appeared to fit in the airlines’ size checkers. Frontier’s vice president of pricing and revenue management acknowledged the possibility of such occurrences but suggested other factors, like prohibited items, might have been involved.

Both Spirit and Frontier denied any abuse of the programs, emphasizing that they aim to ensure compliance with baggage policies and fairness for passengers who pre-paid for luggage. Frontier explained that it seeks to prevent passengers from taking advantage of services they didn’t pay for, while Spirit defended the model as part of its mission to make air travel more affordable through unbundled fares.

Boosting Revenue

The incentive programs align with both airlines’ efforts to increase ancillary revenue. The report stated that Frontier projected $40 million in additional fees in the program’s first year, while Spirit also saw a rise in revenue. The airlines argue that these additional fees allow them to maintain their low-cost business model, offering affordable options for travelers.

Industry Reactions

Spirit and Frontier defended their policies in statements to Business Insider. Both airlines stressed that their incentive programs aim to treat all passengers equitably. They also emphasized the importance of their budget-friendly business model in expanding access to affordable air travel. Spirit added that it’s open to discussions about broader industry initiatives to create a level playing field for smaller carriers.

Questions Remain

The report highlights a tension between the airlines’ efforts to generate revenue and the potential for unfair treatment of passengers. As Spirit and Frontier continue to defend their practices, passengers may remain wary of the policies, particularly those tied to baggage fees and seat upgrades.

For travelers considering these budget carriers, it’s essential to understand the policies and fees before heading to the airport. While the airlines assert that these measures are meant to maintain fairness, the Senate report leaves room for debate about their impact on passenger experience and employee conduct.

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