Frontier Airlines Eliminated Customer Service Call Centre

Frontier Airlines announced that it has closed its call center and is now only offering online, mobile and text support. This will help to reduce costs.

CNBC spoke with Jennifer de la Cruz, spokesperson for budget airline carrier, Wednesday, stating that customers will be able to access the information they require via online, mobile and text support.

Frontier Airlines Lower Costs
Frontier Airlines planes are at the gates of Denver International Airport’s A Concourse.
David Zalubowski/AP

Frontier’s senior vice-president of customers Jack Filene stated during the Nov. 15, investor presentation that the changes would reduce labor costs and speed up transactions with potential customers. Online agents can simultaneously handle multiple customer service inquiries.

Think about what kind of question a customer might have that would take a call centre agent several minutes to answer. Filene explained that chatbots can quickly answer such questions.

Frontier posted a profit of $31 million on $909million in operating revenues during the last quarter. It spent $182million on labor costs, which was its second-largest expense after jet fuel. This is almost 70% more than 2019.

According to Barry Biffle (Frontier’s president/CEO), a July spending report showed strong demand for low-cost airline travel. It also reported record-high “ancillary revenue” of $75 per passenger. This contributed to Frontier’s first profitable quarter in more than two years.

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