will end its cargo operations at the end of September as the carrier increasingly aligns itself with the ultra-low-cost airline model.
The Denver-based carrier announced details of the shutdown on its “Frontier Cargo” website, saying that the last day for accepting outbound shipments will be Friday, Sept. 27. Its last day of cargo shipping will be Monday, Sept. 30.
“It’s not our primary business, so it was simply a business decision,” said Kate O’Malley, Frontier’s spokeswoman. “Our cargo department is tiny.”
It may be a smaller department, but Frontier’s cargo is well-respected in the industry, said Brandon Fried, executive director of the Airforwarders Association, which serves as a middleman organization between companies shipping cargo and the domestic and international carriers.
“We sent a letter to their leadership last week to see if there was something we could do to find out what led to this decision, but we haven’t had a response yet,” Fried said. “It depends what the strategy is.”
Frontier has been clear that it is transitioning from a low-cost-carrier model — like Southwest Airlines — to an ultra-low-cost-carrier model — like Allegiant Air or Spirit Air, which did not fly cargo.
According to Bob Dahl, managing director and consultant with Air Cargo Management Group, FedEx and UPS dominate the cargo industry, with the airlines providing a small percentage of the U.S. freight service.
“All these airlines are upping their baggage fees and are getting a lot more money from charging for bags than freight,” Dahl said.
In 2012, Frontier took in just over $7 million in freight revenue compared to more than $70 million in excess passenger baggage charges, according to Department of Transportation statistics.
Frontier Airlines cargo locations are scattered across the country, including Denver, New York, Kansas City, Orlando, New Orleans, Oklahoma City, Omaha, Chicago, Seattle, San Francisco, Milwaukee and Madison, Wis.
The airline’s cargo department employs about 20 people — four in Milwaukee and the rest at its Denver hub.
“In Denver, the affected employees will be absorbed into the ramp team,” O’Malley said, noting that the Milwaukee employees will not be transferred to the ramp team.
