
An airline CEO is defending the business ultra-low-cost model of his carrier following the months of economic uncertainty that have shaken the industry. Frontier Airlines CEO Barry Biffle said Wednesday the ultra-low-cost carrier model is “alive and well” even though some mainline carriers declared that the low-cost side of the industry is no longer sustainable. Frontier Airlines has recently announced its 42 new routes since late August to expand its presence in Spirit’s top markets in the United States, the Caribbean, and Latin America.
Biifle said that the cost advantage for ultra-low cost carriers continues to widen, and the model is alive and well. The viability of ultra-low-cost airlines has been under a microscope in recent weeks, with Spirit Airlines. Briffle has said that Frontier Airlines is committed to becoming the top low-cost airline in the United States and is prepared to fill any gap in the market left by Spirit. Frontier Airlines said that the financial issues at rival Spirit and Southwest Airlines decision to remove the policy of free checked baggage have leveled the playing field to help it raise its market share.
Kirby’s Feedback on the Ultra-Low-Cost Model
United Airlines CEO Scott Kirby argues the ultra-cost carrier model is a failed experiment and broken fundamentally as it relies on Screw the Customer tactics with the hidden fees and poor services which lead to the low customer loyalty and an unsustainable business for scaled airlines. He believes that the model cannot raise the repeat business and cites Spirit Airlines financial struggles as evidence of its unsustainability while Frontier Airlines, though struggling, argues the model is alive and well.
- He claims the Ultra-low-cost model is built on deceiving customers with hidden fee which cause the lack of repeat business.
- Frontier Airlines CEO Barry Biffle declared on Wednesday that the ultra-low-cost carrier model is “alive and well” in the United States amid claims from industry peers that the model is not performing well.
- He also argues that the low margins and reliance on the ancillary costs are not sustainable as the expansion of operational costs which makes the model doomed in the current environment.
- Kirby recommends that the ULCC model is viable only at a small scale but fails as the airline grows larger as repeat flyers expect enhanced services and fewer hidden charges.
- He points to Spirit Airlines recent Chapter 11 filing and losses as proof that the ULCC model is no longer alive.
Briffle’s Strong Defense
Barry Briffle (the CEO of Frontier Airlines) has defended that the Ultra-low-cost model is good for utilization. Speaking at a travel conference in New York, Biffle insisted the model is “alive and well” despite the current industry turbulence and remarks from United Airlines CEO Scott Kirby questioning its viability. The main arguments center on the fundamental cost advantage of the ULCC model and industry-wide market conditions that are affecting all airlines with low-cost airlines.
- Cost Advantage: Briffle maintains that the ULCC model remains successful as carriers like Frontier Airlines can operate at less cost than the legacy carriers. The ULCC (Ultra Low-Cost Carrier) model works by keeping operations efficient and offering services separately rather than all included in the ticket price. This means you will be charged extra for things that traditional airlines usually include like checked bags or in-flight snacks while you might pay less for a seat. Biffle believes that this approach not only saves money for travelers but also obtains more effective results, showing that the ULCC model is a successful way to run an airline.
- Industry Oversupply: Biffle highlights that there are too many domestic flights available which makes it hard for all airlines to make a profit rather than blaming the low-cost airline model for their financial challenges. He also notes that even the well-established airlines are losing money on domestic routes and are depending on their international flights to help cover these losses.
- Anticipated Market Correction: Biffle believes that the airline industry is likely to experience a correction in the next one to two years. This means that airlines like the larger, well-established ones will reduce the number of flights they offer. He thinks this shift will allow Frontier Airlines and other low-cost carriers to improve their profits and show how strong they really are in the market.
- Seizing Market Share: Frontier Airlines took swift action to add new flight routes that Spirit Airlines used to operate after Spirit Airlines filed for bankruptcy. In September 2025, Frontier announced many new destinations, with their CEO, Barry Biffle to explain that this was a chance for Frontier to step in and become the leading low-cost airline. Frontier Airlines CEO fired back at United’s CEO for saying the discount airline model is dead in the United States.
- A Future With Product Pivots: Biffle firmly supports the ultra-low-cost carrier Ultra-low-cost model even as Frontier Airlines makes some changes to its offerings like adding first-class seating in 2026. He believes these adjustments will help the airline increase profits while still keeping the basics of the ULCC model intact. Biffle argues that these changes are not a step back from the ULCC approach but rather a way to improve and adapt it.
Less Capacity in the Aviation Industry
- Frontier Airlines CEO Barry Biffle predicts the existing reduction in the United States domestic flight capacity due to the loss of various routes caused by the excess supply relative to demand.
- These cuts will result in fewer flight options and higher fares for flyers.
- Briffle suggests that the airlines will be forced to abandon money-losing flights and that the industry will reach an equilibrium with less capacity.
- Many domestic flight routes are not making enough revenue to cover the cost which leads airlines to scale back operations.
- Biffle announced that cost advantages for ultra-low-cost carriers continue to widen, so the model is “alive and well.
- The current capacity is high in the domestic market compared to the ongoing demand for flights.
- Airlines, like ultra-low-cost airlines like Spirit are facing financial difficulties and need to cut the profitable flights to increase profitability.
Final Words!
The recent clash between two airline CEOs brings up important questions about the future of flying for budget travelers. Ultra-low-cost model have made flying affordable for many people but their business model is now facing challenges due to increasing costs and stiff competition. One of the CEOs, Biffle, is confident in Frontier Airlines’ strategy, which focuses on keeping costs low and expanding its services.
United CEO says ultra-low-cost airlines like Frontier are ‘going out of business’ due to poor customer service and a ‘flawed’ business model. This optimism suggests that the approach of low-cost airlines is still alive and well. The competition between budget airlines and traditional carriers will significantly influence how Americans travel by air as the airline industry changes. Looking for more insights or wish to reserve your flight with ULCC, contact Grouptripo at Call Us : +1-833-894-5333 and share your issue with them.
Frequently Asked Questions
The main difference between the low-cost airlines and the ultra-low-cost airlines is easy to learn. The low-cost airlines offer lower fares and a more streamlined experience with some basic services, while the ultra low-cost carriers push cost-cutting to an extreme level, which offers the absolute lowest base fares with almost everything else, like seat selection, baggage, snacks, etc.
Full-service carriers provide the traditional airline services like meals, baggage and the entertainment options which are included in the ticket cost, along with a hub. On the other hand, the low-cost carriers offer lower fares by removing these amenities to operate on a point-to-point model with a focus on single-route profitability rather than network connectivity.
ULCC refers to the ultra-low-cost carriers, which is the business model, prioritizing the low fares by unbundling all services. It charges extra for seat selection, luggage, food, and adopts a bare bones approach to services to reduce the cost. ULCCs like Spirit Airlines and Frontier Airlines aim to provide the cheapest way for passengers to travel, though this often leads to fewer amenities and higher total costs when add-ons are factored in.
Low-cost airlines are struggling due to higher operation costs like the higher pilot wages, increasing competition from legacy airlines that offer their own basic economy fares, and a decline in demand from price-sensitive flyers. Further, consumers are seeking a premium experience and a market that budget-friendly carriers cannot provide. Most low-cost airlines are responding by increasing fees and introducing more premium options but this also raises their costs and challenges their traditional business model.
The two key features differentiating low-cost airlines from full-service airlines that are unbundled costing and limited amenities along with the operational efficiencies like instant turnaround. LCCs incur separate fees for services like meals, baggage, and seat selection which are typically included in the FSA’s base fares. They operate with higher aircraft utilisation and single fleet operations to keep costs low.