One airline CEO is defending his carrier’s business model following months of economic uncertainty that has shook the industry.
Frontier Airlines CEO Barry Biffle said Wednesday the ultra-low-cost airline model is “alive and well” despite some mainline carriers saying that the low-cost side of the industry is no longer sustainable.
The viability of ultra-low-cost airlines has been under a microscope in recent weeks, as Spirit Airlines—a standard bearer of sorts for the a la carte airline model—has entered a second bankruptcy restructuring in under a year and has stated it needs immediate cash to survive.
Biffle has said that Frontier is committed to becoming the No. 1 low-cost carrier in the United States and is prepared to fill any gaps left in the market by Spirit. Frontier has already launched a major network expansion of 22 new routes launching this fall in markets where Spirit operates. Even if it stays afloat, Spirit is cutting routes and capacity in an effort to conserve cash.
Mainline carrier United made a similar move, adding fall and winter flights in 15 Spirit markets in case the low-cost airline folds. United’s CEO Scott Kirby also said earlier this spring that the low-cost airline model is “dead.”
The budget and ultra-low-cost end of the airline industry was hit particularly hard by economic uncertainty surrounding President Trump’s tariff policies earlier this year. Price-sensitive travelers held off booking for weeks and months and demand for domestic economy class dropped significantly. However, that segment of the market has since begun to recover.
Frontier hasn’t been immune to the headwinds, and it forecasted larger-than-expected financial losses through the third quarter of 2025. The carrier also said it would cut its fall flight capacity by 3% to 5% to help shore up its operations against losses.
But what’s affecting the industry now isn’t just a problem for low-cost carriers, according to Biffle. “You've got too much domestic supply and that is hurting yields across the domestic landscape and that's hurting everyone,” he said at the Skift Global Forum on September 17.
The airline has also been busy making changes and improvements to attract more premium customers on board, including revamped loyalty offers, companion travel passes, and a new first class seat that will launch in 2026.
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