Frontier Airlines says it is establishing Cabo San Lucas as its second focus city, with service from five cities in March, as it expands its presence in Mexico. Cancún is its other focus city.
The new focus on Cabo is part of an ongoing strategy to diversify beyond Denver, as pressure from Dallas-based Southwest Airlines hurts Denver-based Frontier.
By March 2008, Mexico flight capacity will make up 18 percent of Frontier's total flight capacity during peak season.
Frontier Airlines has taken a financial hit battling Southwest Airlines in Denver but is filling more seats on flights where the two carriers compete head-to- head, a company executive said Thursday.
"Southwest in every market with the exception of Houston is doing very, very poorly in load factors relative with Frontier Airlines," said Paul Tate, Frontier's chief financial officer. "It appears that this differential is increasing. In other words, their load factors are deteriorating relative to ours."
Denver International and Frontier Airlines are working on a plan to expand a regional jet facility on Concourse A.
The Denver-based carrier needs more space for its new subsidiary, Lynx Aviation, which will begin flying this summer in Colorado and Wyoming (and possibly other destinations) with 10 turboprop planes.
Officials haven't determined the scope of expansion, says Joe Hodas, a Frontier spokesman. Until then, Frontier will deal with its growth by taking over six gates being abandoned by United on Concourse A, giving Frontier a total of 23 by May 1.