Despite the sluggishness of foreign tourism and broader economic uncertainty, Frontier CEO Barry Biffle remains optimistic about the airline’s future.
“People think there’s going to be a kind of Armageddon,” Biffle said in an exclusive interview with “NBC Nightly News” correspondent, Harry Jackson, which airs Sunday. “Looking at this today, I think I’m optimistic.”
Travel experts have issued warnings amid President Donald Trump’s world trade war, warning that the year, originally predicted to be profitable for the tourism industry, could face a recession instead.
Before Trump announced a 90-day suspension for most of the proposed tariffs, Delta CEO Ed Bastian told CNBC last week that air travel has been stagnating for both leisure and business trips.
“I think everyone is prepared for uncertainty,” Bastian said. “If that continues, if we don’t get a solution soon, we’ll probably end up in a recession.”
Biffle has acknowledged the dark outlook shared by people in the aviation industry.
“What’s clear is that there are clearly some challenges in travel demand and we’ve seen it in all industries now. We’re seeing less bookings at hotels, airlines and cruise lines,” he said.
But Biffle believes that the frontier’s ultra-low-cost model will thrive, especially as consumers become more price-conscious. He compares the appeal of retailers like Walmart to the frontiers of retailers, suggesting that as the economy drops, value-oriented businesses tend to perform better.
“There’s a massive reversal of good fortune, what happened,” he said. “Legacy carriers have done very well over the past few years at the expense of us, but now there’s too much domestic supply.”
“All kinds of recession or kind of economic challenge environments – the “Walmart effect”, you know – businesses like us will do well,” he added.
Amidst economic uncertainty and harsher immigration policies, international travelers are increasingly canceling trips to the US. International travel to the US fell 12% in March compared to a year ago, according to the National Travel and Tourism Office.
“Now we’re watching boycotts travel from Europe to the US,” Biffle said. “So you can imagine it might not be 70%? That’s not just 20%, it’s a massive market. This is a big challenge.”
Biffle predicted that the hottest travel spot for Americans this summer will be domestic locations.
“There’s a lot going on in the market, so the country is becoming more popular again,” he said. “And I think we’ll see a lot of people travel across the US this summer.”
To adapt to current market conditions, Frontier is implementing strategic changes. We have revamped our pricing strategy by introducing bundled fare options, including products with extra legroom and empty middle seats. The Frontier also plans to attract more domestic travelers by offering top-notch seats later this year. Additionally, Biffle has promoted the airline’s plan to eliminate bag fees this summer.
The bag fee movement appeared to be aiming for Frontier’s competitor Southwest Airlines. This announced last month that it would start charging for check bags. The decision sparked anger among consumers.
Biffle also raised concerns about the shortage of US air traffic controllers, a concern shared by aviation safety experts, particularly after a fatal air collision between American Airlines passenger jets and Army helicopters in January.
“On normal days without weather, it’s not a huge challenge in general,” Biffle said. “But we’ll use Florida as an example. Christmas, New Year, President’s Day, Spring Break, weekends, mixing it with all sorts of weather, and there’s a cancellation across the industry.
But Biffle is confident that the Trump administration is working to reduce the shortage, and he insisted that air travel is “the safest way to travel and we think it’s safer.”