Frontier Airlines Says Low-Cost Status Gives It Advantages if Economy Tanks
Photo Credit: Frontier Airlines sees its status as a low-cost carrier as a major advantage. Flickr / Mr.TinMD
Skift Take
Frontier CEO Barry Biffle recalled Southwest Airlines during the economic tumult of the 1980s when making his case this week for why low-cost carriers are exceptionally resilient in downturns.
Frontier Airlines, like rivals Delta Air Lines and United Airlines, acknowledge the airline industry is facing headwinds amid a possible recession. But the company believes its status as a low-cost carrier will help it thrive and overcome an economic slowdown.
"The lowest-cost model ... is generally the winner in any recessionary environment," CEO Barry Biffle said during Frontier's third-quarter earnings call on Wednesday, citing Southwest Airlines in the 1980s and 1990s and Spirit Airlines during the Great Recession of 2008 as examples.
"Typically, you would find an ultra-low cost carrier, especially ourselves .... to fare most likely the best in a recessionary environment. And part of that is just simple we'll have the lowest cost, so it's easier to cover our (expenses)."
Biffle has also viewed Frontier's status as a budg
