Frontier Airlines CEO Barry Biffle pushed back against United Airlines CEO Scott Kirby’s claim that the deep-discount model is failing, according to CNBC. Speaking at the Skift Global Forum, Biffle argued that U.S. airlines face an oversupply problem, not a broken business model. He cited Frontier’s lower unit costs — 7.50 cents per seat mile excluding fuel compared with United’s 12.36 cents — and said the carrier appeals to customers seeking cheap fares while spending more on other travel luxuries. Kirby warned Frontier would be the last survivor of a failing discount model, while Biffle countered that United cannot dictate consumer choice. Both airlines, along with JetBlue, are adding flights on Spirit’s routes as it struggles through bankruptcy. Frontier posted a $70 million loss in the second quarter but forecast revenue growth this fall and said it expects profitability by 2026.
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00:02Frontier Airlines CEO Barry Biffle pushed back against United Airlines CEO Scott Kirby's claim that the deep discount model is failing, according to CNBC.
00:10Speaking of the Skiff Global Forum, Biffle argued that the U.S. airlines face an oversupply problem, not a broken business model.
00:17He cited Frontier's lower unit costs $7.50 per seat mile, excluding fuel, paired with United's $12.36.
00:24He said the carrier appeals to customers seeking cheap fares while spending more on other travel luxuries.
00:28Kirby warned Frontier would be the last survivor of a failing discount model, while Biffle countered that United cannot dictate consumer choice.
00:35Both airlines, along with JetBlue, are adding flights on spirits routes as it struggles through bankruptcy.
00:40Frontier posted a $70 million loss in the second quarter, but forecast revenue growth this fall and said it expects profitability by 2026.
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