Frontier Airlines’ Advertising Message Crashes and Burns

AdAge’s Michael Learmouth shared a recent Frontier Airlines (NASDAQ:RJET) experience that he felt violated the basic agreement of TV advertising.  Learmouth describes watching a TV episode while onboard the airline which was interrupted by a slew of advertisements. As he waited patiently for his show to return, he was suddenly shocked by a message requiring him to pay $6 to continue watching the episode.

Learmouth states that the typical commercial is endured happily by viewers because they know they are gaining entertainment in return for the advertisements. In this situation, the author felt robbed because he actually received nothing in return after spending time viewing the ads.

Learmouth begins to ponder the damage done to the commercial advertisers by the unpleasant experience imposed by the airline’s nickel and diming. “When airlines treat ads this way, though, consumers associate the advertisers’ brands with that bad experience, which is probably not why those advertisers signed up with Frontier in the first place.”

Learmouth concludes by advising advertisers considering airline advertising to make sure they’re bringing something of value to passengers, otherwise to steer clear.

Here’s how other Airline stocks are reacting to the news following Frontier’s stock sell-off:

Southwest Airlines Co. (NYSE:LUV): LUV shares recently traded at $8.55, up $0.15, or 1.79%. They have traded in a 52-week range of $7.15 to $13.59. Volume today was 1,920,940 shares versus a 3-month average volume of 8,684,380 shares. The company’s trailing P/E is 43.62, while trailing earnings are $0.20 per share.

AMR Corporation (NYSE:AMR): AMR shares recently traded at $0.52, down $0.02, or 3.7%. They have traded in a 52-week range of $0.20 to $8.89. Volume today was 10,856,589 shares versus a 3-month average volume of 32,877,700 shares. The company’s trailing earnings are $-2.93 per share.

US Airways Group, Inc. (NYSE:LCC): LCC shares recently traded at $5.19,. They have traded in a 52-week range of $3.96 to $11.56. Volume today was 2,419,977 shares versus a 3-month average volume of 6,745,490 shares. The company’s trailing P/E is 10.34, while trailing earnings are $0.50 per share.

Pinnacle Airlines Corp. (NASDAQ:PNCL): PNCL shares recently traded at $0.88, up $0.03, or 3.53%. They have traded in a 52-week range of $0.80 to $8.68. Volume today was 62,750 shares versus a 3-month average volume of 126,017 shares. The company’s trailing earnings are $-0.71 per share.

United Continental Holdings (NYSE:UAL): UAL shares recently traded at $18.80, down $0.15, or 0.79%. They have traded in a 52-week range of $15.51 to $27.72. Volume today was 1,679,903 shares versus a 3-month average volume of 5,933,710 shares. The company’s trailing P/E is 10.80, while trailing earnings are $1.74 per share.

Delta Air Lines Inc. (NYSE:DAL): DAL shares recently traded at $8.09, down $0.03, or 0.37%. They have traded in a 52-week range of $6.41 to $13.21. Volume today was 2,230,980 shares versus a 3-month average volume of 12,404,500 shares. The company’s trailing P/E is 15.26, while trailing earnings are $0.53 per share.

Hawaiian Holdings Inc. (NASDAQ:HA): HA shares recently traded at $5.82, up $0.08, or 1.39%. They have traded in a 52-week range of $3.67 to $8.10. Volume today was 206,356 shares versus a 3-month average volume of 623,671 shares. The company’s trailing P/E is 6.26, while trailing earnings are $0.93 per share.

JetBlue Airways Corporation (NASDAQ:JBLU): JBLU shares recently traded at $5.24, up $0.08, or 1.55%. They have traded in a 52-week range of $3.40 to $7.13. Volume today was 839,332 shares versus a 3-month average volume of 5,446,300 shares. The company’s trailing P/E is 21.92, while trailing earnings are $0.24 per share.

To contact the reporter on this story: Ashley Cloninger at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com