United and Frontier CEOs argue about budget airlines

The CEOs of Frontier Airlines and United Airlines are engaged in a verbal dispute over the future of low-cost carriers in the US.

United CEO Scott Kirby said in a recent conference that twice-bankrupt Spirit Airlines would go under. He dismissed the budget model as unsustainable because “I’m good at math.”

Frontier CEO Barry Biffle shot back at the prediction, saying, “If he’s good at math he would understand that we have a [flight] oversupply issue in the United States.”

Biffle defended budget airlines’ models and argued they target customers who might otherwise stay at home, and flyers who want cheap air tickets while spending on luxury hotels.

He also compared Frontier’s costs of 7.50 cents per seat mile (excluding fuel) with United’s 12.36 cents.

Analysts note that while Biffle’s math makes sense, US budget airlines are still struggling. They face issues with oversupply, higher fuel costs, and competition from legacy carriers offering basic economy fares.

Frontier posted a $70 million loss in the second quarter, but expects revenue growth this year and profitability by 2026.