Frontier Airlines CEO Says Low-Cost Travel is Disappearing as Domestic Routes Lose Money

Frontier Airlines CEO Barry Biffle is sounding the alarm on the future of cheap air travel, warning that travelers should prepare for fewer budget-friendly options.

“There’s going to continue to be reductions in capacity in this industry,” Biffle said during the company’s second-quarter earnings call on August 5th. He explained that many domestic routes simply aren’t profitable, forcing airlines to scale back flights and destinations. “The domestic [side] is not making money. And that’s because there is too much supply relative to demand,” he added.

Despite Frontier pulling in $929 million in revenue for the quarter, the airline reported a $70 million net loss.

Biffle’s concerns echo those of United Airlines CEO Scott Kirby, who recently noted that a significant portion of many airlines’ routes lose money.

“The only way for them to get margins… is to stop flying places that lose money. And that is going to ultimately happen,” Kirby said.

Not everyone agrees with the grim outlook. American Airlines CEO Robert Isom pushed back, saying, “We don’t run our airline based on other airlines’ perception of our business.” While acknowledging hesitance among domestic travelers to book more profitable international trips, Isom said, “We think that’s going to change.”

These warnings come as airlines face mounting challenges. In March, Delta Air Lines CEO Ed Bastian said high-profile crashes had caused a “pretty immediate stall” in bookings, with safety concerns hurting consumer confidence.

In response, carriers are rolling out new perks to attract flyers. Frontier’s latest offer, available through Aug. 18, includes a free carry-on bag, seat selection, and flight changes under its “Economy Bundle” option.

With shifting demand, shrinking routes, and rising costs, industry leaders agree on one thing: the days of plentiful low-cost fares may be numbered.