Frontier Believes its Time is Coming. Analysts Are Not So Sure.
Barry Biffle sees good days ahead for Frontier. Does anyone else?
Dear readers,
Barry Biffle wants us to believe that the worst is over for his airline. After all, many competitors have been reducing capacity1, and consumers, who were spooked in the spring by outside forces (including geopolitics and U.S. economic fears), have reverted to their free-spending ways. Biffle proudly told analysts last week during Frontier’s second quarter earnings call that yields for August on a forward basis are up 5 points year-over-year, and yields for September are up 15 percent.
Biffle really wanted to push the narrative that Frontier is on the upswing, and while it’s wonderful that consumers seem less wary now than in the spring (something we have heard this earnings season from most airlines), I sensed that analysts weren’t ready to congratulate Biffle, who might be America’s most optimistic airline CEO.