If the above statistics are true, then why didn't Frontier just drop the change fee and the bag fee and fly their flights for the same fares as Southwest? At the same "true" price (bag and change fees included), Frontier should have been the winner every time because they have Direct TV. And, if Southwest can make money at 9.76, Frontier should have made a huge profit at 8.72.

If the above statistics are true, the reason that Frontier failed is that they were too greedy, pricing their product at too much of a premium over Southwest's product. The trade off between a Frontier flight and a Southwest flight is the availability of Direct TV, buy-on-board and assigned seating vs. singing and happy FA's, free snacks and open seating.

For me, this proves yet again that the average flyer is more aware of bag and change fees than airline executives (except those at Southwest) give them credit for. People ARE factoring in these junk fees and choosing Southwest more than Frontier. Frontier could have saved itself by realizing 3 years ago that their real competition in Denver is Southwest, not United.