United Airlines CEO Scott Kirby is sounding off about the state of air travel — and his prediction isn’t great news for budget fliers.
Speaking Thursday at the Airline Passenger Experience Association’s conference in Long Beach, Kirby flatly declared that low-cost carriers like Spirit Airlines are doomed. “Because I’m good at math,” he quipped when asked why he believes Spirit is headed out of business, according to NBC News.
Spirit’s financial turbulence
Spirit Airlines filed for Chapter 11 bankruptcy protection late last month — its second time in less than a year. After reemerging from bankruptcy in March, the airline was hit with weaker-than-expected customer demand and persistently high costs. In recent months, Spirit has cut a dozen destinations even as competitors like United, JetBlue, and Frontier expanded service.
Kirby has long been critical of the discount model, arguing that selling rock-bottom fares while charging extra for nearly everything else — from carry-on bags to seat assignments — has run its course. “You can’t have a business model that customers hate. You can’t have a business model predicated on ‘screw the customer,’” he said.
Read more: Spirit Airlines files for bankruptcy
Spirit pushes back
Spirit wasn’t about to let Kirby’s remarks slide. After he made similar comments at another event in Washington, D.C., this week, the airline’s official X account clapped back: “Scott is finally right about something — it is all about customers. Our Guests love low fares, especially our new Spirit First and Premium Economy options. Maybe that’s why United executives can’t stop yapping about us.”
Still, Spirit has shrunk significantly in the past year, while rival Frontier has been vocal about its goal to overtake Spirit as the country’s top ultra-low-cost carrier.
What it means for travelers
The rise of “basic economy” on major airlines like United and Delta has also cut into the ultra-low-cost niche by offering cheaper fares that come with more amenities and global networks. Kirby suggested that spells trouble for carriers that can’t match the value. “The business model doesn’t work,” he said, likening Spirit and its peers to the “last man on a sinking ship.”
For fliers hoping for a return to consistently cheap tickets, the message from one of the industry’s most powerful executives is clear: don’t count on it.