Frontier Airlines, one of the world’s biggest budget airlines, is adding first-class seats.

Its change in strategy comes as the industry is battling for customers who are willing to splurge on more personal space.

Starting in September, Frontier plans to start ripping out the first two rows of its three-by-three economy seats to add four first-class seats, in a two-by-two configuration.

The Denver-based airline is also revamping its loyalty program to offer complimentary seat upgrades to its gold level members and above, when available, and a free companion ticket for its higher-tier platinum and diamond-level members. In mid-2025, customers will be able to redeem their miles for seating upgrades and baggage fees.

CEO Barry Biffle said he expects the new initiatives will bring in about $250 million in 2026 and more than $500 million in 2028.

“While we have the lowest costs in the industry, we don’t have the best revenue model,” Biffle said in an interview.

Biffle said the company’s biggest gaps in its revenue model came from not offering first-class seats and not having enough rewards for its loyalty program members. “This is going to be a game changer,” he added.

He said expects the new seats will be especially popular on some of Frontier’s cross-country flights.

Frontier’s cabin changes come as the airline industry is racing to win over higher-paying customers, outfitting planes with more first-class or bigger seats that fetch higher fares, turning up the pressure on budget airlines to come up with more spacious options.

Those upgrades have come from behemoths like Delta and United, which account for most of the industry profits, and smaller carriers like JetBlue. Frontier will have to compete with carriers that offer other perks to sit at the front of the plane like full meals, but Biffle said that his airline’s best seats will beat them on price.

The carrier in March announced it would start selling rows with blocked middle seats and Frontier plans to keep offering that option, a spokeswoman said.

Southwest Airlines is planning to add extra-legroom seats and introduce seat assignments to increase revenue, switching course from the open-seating cabin it has flown for more than 50 years.

Spirit Airlines, which filed for Chapter 11 bankruptcy protection last month, offers a “Big Front Seat” that is similar to a domestic first-class seat on its aircraft.