Despite a recession in foreign tourism and the broader economic uncertainty, the CEO of Frontier, Barry Biffle, remains optimistic about the future of the budget airline.
“People think some type of Armageddon will happen,” Biffle said in an exclusive interview with the “NBC Nightly News” Hallie Jackson who is broadcast on Sunday. “I think we look here today, I’m optimistic.”
Travel experts have been playing the alarm in the middle of the global commercial war of President Donald Trump, warning that a year that was initially projected that it was profitable for the tourism industry could face an economic recession.
Before Trump announced a 90 -day break in most of his proposed rates, Delta CEO, Ed Bastian, told CNBC last week that Air Travel has stagnated both for leisure trips and business.
“I think everyone is prepared for uncertainty,” Bastian said. “If that continues and we do not get a resolution soon, we will probably end in a recession.”
Biffle recognized the shady perspective shared by those in the airline industry.
“What is clear is that, obviously, there have been some challenges with the demand for travel, and now we have seen it in all industries. Hotels, airlines, cruise lines are seeing less reservations,” he said.
However, Biffle believes that Frontier’s ultra -low cost model positions that it thrives, especially as consumers become more aware of prices. Frontier’s appeal begins with that of retailers like Walmart, which suggests that when the economy is low, companies oriented to value tend to work better.
“What happened is that there will be a massive reversal of fortune,” he said. “In recent years, inherited operators have done very, very well at the expense of us, but now there is too much domestic offer.”
“In any type of economic or recessive challenge environment, the ‘Walmart effect’, you know, companies like ours work well,” he added.
Amid the most strict economic uncertainty and immigration policies, travelers abroad are increasingly canceling trips to the United States. According to the National Travel and Tourism Office, international trips to the United States decreased 12% in March compared to a year ago.
“At this time, we are seeing boycott to the United States outside of Europe,” Biffle said. “So, can you imagine not 70%? If there is only 20%, that is a massive market. This is a great challenge.”
Biffle predicted that the most popular travel places for Americans this summer will be national locations.
“National is fashionable again due to many things that happen in the market,” he said. “And I think you will see many people traveling throughout the United States this summer.”
To adapt to current market conditions, Frontier is implementing strategic changes. Its price strategy has been renewed when introducing grouped fees options, including offers with additional legs and empty intermediate seats. Frontier also plans to attract more national travelers offering first -class seats at the end of this year. In addition, Biffle promoted the airline’s plans to eliminate bag rates this summer.
The movement of the bag rate seemed to be addressed to the Frontier Southwest Airlines competitor, which announced last month that would begin to charge for the bags to controls. The decision caused outrage among consumers.
Biffle also raised concerns about a shortage of American air traffic controllers, a concern shared by aviation security experts, particularly after the fatal collision in the air between a passenger plane from American Airlines and an army helicopter in January.
“On a normal day without a climate, it is usually not such an important challenge,” said Biffle. “However, I will take Florida as an example: Christmas, New Year, Presidents Day, Spring Holidays, weekends, if you mix any climate with that, we have cancellations throughout the industry, and the reason is that we exceed the capabilities of all air traffic controllers there.”
But Biffle said he is confident that the Trump administration is working to reduce scarcity, and said air trips is “the safest way to travel, and I think we are becoming safer.”
