Frontier is cutting back on midweek flights and delaying the arrival of new jets, yet maintains a positive outlook for the future.

It appears that Barry Biffle, the CEO of Frontier Airlines, has taken note of the criticisms directed at the U.S. ultra-low-cost airline sector. Despite forecasts of continued financial losses in the upcoming months, the airline intends to scale back flights on specific weekdays and postpone the introduction of new aircraft by several years.

In a recent discussion with analysts, Biffle emphasized that the airline's cost-reduction strategies—a key aspect of budget airlines—position Frontier favorably for 2025 and the years that follow.

"Our cost advantage is genuine, resilient, and sustainable," Biffle stated during a conference call on Thursday.

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Biffle expressed his views with a confidence reminiscent of the tone often adopted by United Airlines CEO Scott Kirby in recent months, though Biffle's perspective on the ultra-low-cost carriers differs.

For several months now, Kirby has touted United's "structural, permanent, and irreversible" superiority in the U.S. airline sector, alongside Delta Air Lines. Simultaneously, he has criticized the business strategies of budget airlines, which have struggled to regain their financial footing amid a growing demand for premium seats and international flights that heavily favor larger network carriers.

This criticism has intensified as the U.S. airline industry contends with declining domestic fares and profits in 2024. Airlines attribute this downturn to an oversupply of flights creating fierce competition, leading to significant route changes and major transformations in how some airlines operate.

"It was always a given that airlines would start to cut back on this unprofitable flying," Kirby remarked to analysts last month, in a tone more restrained than when he predicted the downfall of some budget airlines during an industry podcast earlier this summer.

In what appeared to be a defiant stance, Biffle shifted some of the blame for the industry's struggles on Thursday, asserting that the larger airlines (which he referred to as "high-cost carriers") have contributed to saturating the market with flights, thereby driving down ticket prices.

"The best way to stop incurring losses is to cease activities that result in losses," Biffle stated.

Frontier is encountering hurdles

Naturally, when it comes to finances, Frontier has faced its share of difficulties recently.

While the airline did turn a profit in the second quarter of this year, it's important to note that this period is typically the peak earnings time for all airlines. Many carriers aim to bolster their revenues before entering the lower-demand months of the year.

This year, 2024 has marked a significant overhaul for Frontier Airlines, with changes implemented throughout the organization.

Revamping the network

Since January, Frontier has introduced 114 new routes while simultaneously eliminating numerous others.

Executives disclosed on Thursday that about a third of the airline's newly introduced routes were unsuccessful, including a number of flights at Louis Armstrong New Orleans International Airport (MSY). They noted that this aligns with historical patterns.

In 2024, the airline has launched two new bases in Ohio, initiated its first-ever service from New York's John F. Kennedy International Airport (JFK), and placed greater emphasis on cities like Atlanta, Charlotte, Chicago, and Dallas — which are hubs for larger airlines. This strategy aims to reduce reliance on traditionally popular leisure destinations such as Orlando and Las Vegas, where intense competition has squeezed profits for airlines.

Revamped commercial strategy

Frontier has also revamped its approach to presenting ticket prices and additional fees, now providing customers with four clear bundles upfront. One of these options includes a seat design typically found in European business class, offering extra legroom and an empty middle seat.

The results of this change have "far exceeded" Frontier's expectations, with customers increasingly opting for higher fare options.

Reducing flights on Tuesdays and Wednesdays

As mid-August approaches, additional changes will be implemented. Frontier is cutting back on flights on Tuesdays and Wednesdays to concentrate on days with higher demand. Executives indicated that less than 30% of the airline's scheduled seats for September will operate on off-peak days, a decrease from about 40% last year.

"We analyzed our profitable routes and those where we incur losses," Biffle stated. "The midweek flights have been unprofitable."

Anticipated losses

Frontier foresees increased losses in the third quarter, with estimates showing they could be at least 3% in the negative.

In light of its plans to moderate the expansion of its flight network for the foreseeable future, the airline has delayed the delivery of over 50 Airbus jets until after 2028 — roughly a third of the aircraft it anticipated receiving in the next four years.

Compensation from CrowdStrike requested

The challenges faced by Frontier also limit its financial capacity to handle issues beyond its control, such as the recent CrowdStrike outage. The airline estimates it lost about $20 million during this incident, which impacted several U.S. carriers and various global industries.

"You would expect us to strive to recover every cent," Biffle stated on Thursday, adding that the airline's new "out-and-back" flying model — where 80% of its aircraft and crews depart from and return to the same city each day — has facilitated a swift recovery.

He noted that this was a significant factor in why the airline (which is rarely praised for its operational reliability) recovered much faster than the typically reliable Delta Air Lines, which experienced a five-day breakdown and now estimates losses of around $500 million from that incident.

Frontier: 'We are well-prepared for 2025 and beyond'

Nevertheless, Frontier maintains that the outlook is improving.

Biffle mentioned that fares for September are on the rise as comprehensive network adjustments take effect throughout the U.S. airline industry.

Although this news may be less favorable for customers compared to airlines and their shareholders, September fares are still tracking below 2023 levels, according to Hayley Berg, lead economist at the booking app Hopper. This trend occurs during a time when it's easier to find great travel deals as peak summer demand begins to wane.

Frontier also anticipates that its recent launch of a business-focused travel product may attract a wider range of travelers beyond its traditional leisure audience.

Additionally, if recent fluctuations in the stock market signal economic softness, Biffle believes Frontier could be well-positioned to benefit.

"Retailers like Walmart, Costco, and low-cost carriers thrive during recessions," he informed analysts.