*

CEO Biffle responds to United's Kirby for dismissing

low-cost

model

*

Biffle says cost advantages for low-cost carriers continue

to

widen

*

Biffle says capacity will shrink across industry in 1-2

years

*

Biffle says customers do not care about free baggage

policies

(Adds CEO quote in paragraph 4 and 10, context throughout)

By Doyinsola Oladipo

NEW YORK, Sept 17 (Reuters) - Frontier Airlines

CEO Barry Biffle said on Wednesday that the ultra-low-cost

carrier model is "alive and well" in the U.S. amid claims from

an industry peer that the model has failed.

The Denver-based airline said it is committed to becoming the

leading low-fare carrier in the U.S. and will help fill gaps

left by Spirit Airlines, which filed for bankruptcy protection

last month for the second time in a year.

Frontier has announced a total of 42 new routes since late

August, expanding its presence in some of Spirit's top markets

in the U.S., Latin America and the Caribbean.

Biffle said cost advantages for ultra-low-cost carriers

continue to widen, so the model is "alive and well."

"You've got too much domestic supply and that is hurting

yields across the domestic landscape and that's hurting

everyone," Biffle told a travel conference in New York on

Wednesday.

Biffle said that in the next one to two years there will be

fewer seats across the industry - not just for ultra-low-cost

carriers as Spirit shrinks its operations, but for legacy

carriers, as well.

Ultra-low-cost carrier capacity is expected to fall 3.7%

year over year in the fourth quarter, led by Spirit cuts,

according to data from TD Cowen.

United Airlines CEO Scott Kirby has been a vocal critic of the

business model of no-frills airlines and has repeatedly

questioned their viability.

He called the ultra-low-cost airline business model "an

interesting experiment" that has "failed," and likened Frontier

to the last man standing on a sinking ship.

"It's just absurd. Look, the people that fly Frontier are

not people that spill from (United). They are people that would

have never flown (United) in the first place," Biffle said.

Frontier

forecast

a wider-than-expected loss for the current quarter and has

been betting on network changes, capacity cuts and improved

product offerings to lift its earnings.

Frontier said financial troubles at rival Spirit Airlines and

Southwest Airlines' ( LUV ) decision to end its policy of

allowing free checked bags have leveled the playing field to

help it grow its market share.

Biffle said the company saw a spike in bookings shortly

after it announced a free baggage policy only for bookings to

flatline after a week.

"Customers didn't care ... Southwest ( LUV ) probably should have

been charging for bags 20 years ago," he added.

Frontier plans to roll out first class seating in early 2026

and is aiming to double its

loyalty

revenue to $6 per passenger by next year.