United CEO Forecasts Spirit Airlines' Demise Due to Failing Business Model

LONG BEACH, Calif. — Scott Kirby, chief executive officer of United Airlines, stated on Thursday that Spirit Airlines is on its way to closing down. He declared that the previously lucrative model of low-cost airlines is now obsolete.

Just last month, Spirit Airlines initiated another bankruptcy filing, the second within a year. The airline's earlier attempts at restructuring fell short, compounded by waning customer interest and stubbornly high operating costs since their brief recovery in March.

Addressing an assembly at an aviation conference, Kirby was questioned by moderator Brian Sumers, an airline journalist and podcaster, regarding the fate of Spirit Airlines. Kirby responded confidently, stating his belief in its shutdown is backed by his analytical skills, saying: "Because I'm good at math."

Further Analysis of the Airline Sector

In recent times, Spirit Airlines has been reducing its service frequency, while competitors such as United and other low-cost carriers have expanded their services to destinations that Spirit serves.

For many years, Kirby has voiced his criticism of the budget airline framework, noting that the aggressive growth strategies they depended on for profitability are not viable in the long run. On Thursday, he also criticized the tactic of charging exceedingly low base prices while adding fees for numerous services, expressing that it often leads to unsatisfied customers.

"A business model despised by its customers is unsustainable. You cannot build a company on the principle of exploiting consumers," Kirby remarked during his speech on Thursday.

He reiterated these criticisms the previous day in Washington, D.C., inciting a rebuttal from Spirit Airlines.

In response to Kirby's critique, Spirit Airlines posted on their X account: "Scott finally got something right – it's all about pleasing customers. Our passengers appreciate our competitive prices, especially our Spirit First and Premium Economy options. Perhaps that's why United's executives cannot stop talking about us."