Frontier Airlines CEO warning: Flight reductions likely amid drop in demand

By
Published  August 9, 2025 12:24pm CDT
FOX Local

Frontier flight takes off in Washington, DC Photographer: Al Drago/Bloomberg via Getty Images

The Brief

    • A drop in demand for major US airlines could lead to a drop in flights and destinations, CEOs are warning. 
    • Frontier Airlines reported a $70 million loss in its second-quarter earnings. 
    • The company’s CEO says the industry will continue to see "reductions" if the trend continues.

Major airline CEOs are predicting fewer flights and destinations as some companies report a drop in profits. 

The latest inflation numbers from the Labor Department show that airfares, hotel rooms and other travel prices have generally declined in recent months. If the trend continues, at least two major airline CEOs predict travelers will have fewer flights and destinations to choose from. 

Frontier Airlines CEO warning

Frontier Airlines CEO Barry L. Biffle addressed the issue on the company’s most recent earnings call. 

What they're saying:

"There is too much supply relative to demand," Biffle said on the call. "And unless you see a meaningful jump in demand, there’s going to continue to be reductions in capacity in this industry."

RELATED: Sluggish summer in Sin City: Las Vegas sees big drop in tourists

Biffle isn’t the only airline CEO sounding the flight reduction alarm bell. United Airlines CEO Scott Kirby echoed the same sentiment on United’s most recent earnings call. 

"If I dig deeper into it and I look at every airline that’s not named United or Delta, I can find at every single one of them, a double-digit percentage of their route network that loses money," Kirby said. "And the only way for them to get margins that are anywhere close to their WAC is to stop flying places that lose money. And that is going to ultimately happen."

By the numbers:

Frontier’s second-quarter earnings showed $929 million in revenue, but a net loss of $70 million. United, meanwhile, reported a Q2 profit, with pre-tax earnings of $1.2 billion. 

According to NerdWallet, travel costs were down for the fourth consecutive month in July. Hotel room rates are down 3.7% over the past year, while airfares are down 3.5%.

Overall, average U.S. travel costs are only 1% lower than they were this time in 2024, according to NerdWallet's Travel Price Index, "but it comes at a time of economic uncertainty when prices for most other things are rising," the report notes. 

The Source: This report includes information from NerdWallet, The Street, Frontier Airlines and United Airlines earnings calls and The Associated Press. 

Travel News