UNITED Airlines CEO has taken shots at other airlines' business models, claiming that one key issue is stopping them from getting repeat customers. United Airlines CEO Scott Kirby believes that "low-cost" airlines are going to run themselves out of business. "It's a fundamentally flawed business model," he told The Air Show podcast .
"The customers hate it." The CEO believes that airlines that offer bare-bones planes in exchange for low cost usually end up giving customers a bad experience. Kirby explained that these companies often end up ignoring customer service in the long run.
"They haven't treated customers right," he said. The CEO revealed the experiences these travelers are getting, often make it so they don't want to fly with these airlines again. "You can do it once, but you don't get to do it to them twice," Kirby said.
"And those airlines grew big enough that they actually need repeat customers." Airlines like Spirit Airlines and Frontier are known for their low fares, and have proven Kiriby's point. Both airlines have been ranked last and second to last in economy experience by J D Power's 2024 survey that examined 11 North American airlines.
The two also received the highest number of customer complaints in 2023, according to the Department of Transportation. Around this time the airline's shares have declined by 73% and 39%. However, Kirby had to admit that while he believes the business model has its faults, United Airlines did need to adopt its own cheaper ti.
