Here’s How Frontier CEO Responded To United Airlines’ Chief Executive’s Comments On Discount Airline Model Being Dead

Frontier Airlines (ULCC) CEO Barry Biffle reportedly responded to United Airlines (UAL) Chief Executive Scott Kirby's comments from last week about the deep discount model in the U.S. being dead, saying that there was a flight oversupply issue in the country.

According to a CNBC report, Biffle fired back at Kirby, saying, “That’s cute,” during the Skift Global Forum on Wednesday. He added, “If he’s good at math, he would understand that we have a [flight] oversupply issue in the United States.”

Retail sentiment on United Airlines remained unchanged in the ‘bullish’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits.

The report added that at an airline conference in Long Beach, California, last week, Kirby stated that he believed Spirit Airlines, the largest U.S. discount airline, would go out of business. In August, Spirit filed for its second bankruptcy in less than a year.

The report further stated that when Kirby was asked about the rationale for his comment on Spirit shutting down, he said, “Because I’m good at math.”

According to the report, Kirby remarked that if Biffle aims to make Frontier the “largest” U.S. discount airline, he may end up as “last man standing on a sinking ship.”

The report noted that Biffle defended Frontier’s lower unit costs, which were $7.50 per available seat mile, excluding fuel, compared with far larger United’s $12.36 in the second quarter. He said that Frontier caters to customers who might not be flying at all, as well as those who might spend less on flights but would spend more on traveling, such as luxury hotels.

Retail sentiment on Frontier remained unchanged in the ‘bearish territory, with message volumes at ‘low levels, according to data from Stocktwits.

Shares of Frontier have declined 23% this year, while United Airlines' stock has gained over 9% year-to-date.

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