Business

Frontier CEO says


Visitors can look forward to higher airfare this spring and summer, even on discount airlines.

Frontier Airlines CEO Barry Biffle told CNBC’s “Closing Bell” on Friday that bookings and what travelers are paying for tickets and add-ons like baggage fees are the highest during the pandemic.

“Even if fuel prices are high, we believe we can be profitable this summer,” Biffle said.

Jet fuel, generally the biggest cost for airlines after labor costs, has jumped 80 percent this year in the US to its highest level since 2008 in March as Western nations imposed sanctions. placed sanctions on Russia in protest of the Ukraine attack.

“We’re going to have to gently raise fares,” says Biffle.

Denver-based Frontier Airlines doesn’t hedge fuel by fixing prices with futures contracts. However, some major US airlines such as American Airlines abandoned fuel hedging programs after the sharp drop in oil prices in 2014. However, Southwest Airlines and Alaska Airlines continued to hedge their risks. .

Airlines are also struggling to ramp up payroll in a tight labor market. During the pandemic, a $54 billion federal aid package banned US carriers from laying off employees, but carriers called for thousands of employees to retire early or other optional packages. .



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