“That’s cute”: Frontier boss shrugs off United chief’s claim that discount airlines are doomed

Frontier CEO Barry Biffle isn’t buying Scott Kirby’s eulogy for the budget model. After United’s chief said the US ultra-low-cost carrier (ULCC) playbook is dead—and predicted Spirit will go under—Biffle fired back on stage at the Skift Global Forum:

“That’s cute… We have an oversupply issue in the United States.”

Kirby, who quipped Spirit will fail because he’s “good at math,” also warned that if Biffle wants to be king of discounters he’ll be the “last man standing on a sinking ship.” Biffle’s retort: Frontier’s math looks fine. He touted unit costs of $7.50 per available seat mile (ex-fuel) versus United’s $12.36 in Q2, and said Frontier serves two types of flyers—those who wouldn’t travel at all without a rock-bottom fare, and those splurging on hotels but hunting for a cheap flight. Asked if Frontier relies on capacity United leaves on the table, he shot back:

“That’s like the CEO of Nordstrom saying, ‘I allow customers to buy jeans from Walmart.'”

Both airlines, along with JetBlue, are piling into major Spirit routes to poach customers as Spirit navigates a second bankruptcy in a year. ULCCs have been squeezed by post-pandemic cost spikes, a glut of domestic seats pressuring fares, and legacy carriers copying their bare-bones pricing with basic economy—while dangling global networks and richer loyalty ecosystems.

“Customers care about value, and they don’t get value on a ULCC,” Kirby told CNBC.

Budget players are tweaking the formula—bundles, more upscale options, fewer nickel-and-dime vibes. Frontier posted a $70 million Q2 net loss but guided to mid-to-high single-digit unit revenue growth in Q3 and says it’s laying the groundwork for profitability in 2026.

Bottom line: United sees a sinking ship; Frontier sees too many seats and a cost edge. The market will decide whose math pencils out.

The original story by Leslie Josephs for CNBC.