Barclays Locks In Frontier Card Deal Through 2037

Barclays (BCS) and Frontier Airlines extended their co-brand credit card partnership by another decade, through June 30, 2037. The 20-year program is Barclays' longest-tenured co-brand arrangement.

The extension gives Barclays room to keep investing in the program as Frontier shifts from an ultra-low-cost carrier to a value airline with amenities like first-class seating.

Eric Grover, principal at Intrepid Ventures, said the U.S. airline co-brand market has consolidated around Chase, Amex, and Citi at the high end.

"Locking in Frontier through 2037 was important for defending turf among value airlines."

Frontier increased its pre-purchased miles facility with Barclays to $375 million from $200 million. Grover said the ten-year extension was a lifeline because Frontier relies on ancillary revenue from the card.

Barclays plans to cross-sell digital banking products – savings accounts and CDs – to Frontier cardholders. Doug Villone, Barclays' head of U.S. cards and partnerships, said the bank has already started marketing those products to other co-brand partners, including AARP.

"We've seen that our consumers, especially because we've invested in a more digitally integrated experience, want to take advantage of some of those products."

The partnership is evolving beyond miles-for-tickets. Villone said the card now includes perks like free checked bags and early boarding. Lounge access and other experiential rewards are also part of the package.

Barclays also counts JetBlue, Emirates, Wyndham, General Motors, Gap, and Old Navy as co-brand partners.

"A long-term extension allows us to continue to make very significant investments in the program around its products, its features, and its functionality," Villone said.