United Airlines CEO Scott Kirby slams the budget airline model: 'It's dead'
United Airlines CEO Scott Kirby earlier this week took a shot at what he called the "crappy" budget airline model.
Speaking at The Wall Street Journal's "Future of Everything" event on Thursday, Kirby said the low-cost carrier model was "dead."
"The model was screw the customer," he said.
"It was like trick people, get them to buy, and get them to come, and then charge them a whole bunch of fees that they aren't expecting … disclosures buried in legalese," he continued. "Their problem is they got big enough that they needed repeat customers. They don't get them."
Kirby's comments came the same day that United announced a new partnership with JetBlue, which many consider to be a budget carrier.
The partnership, known as Blue Sky, will allow United to access slots for up to seven daily round-trip flights out of JFK's Terminal 6 as early as 2027.
The deal, which is subject to regulatory review, will also allow customers to earn and use frequent flyer miles across both airlines, among other things.
Kirby said on Thursday that JetBlue offered something different to traditional budget airlines.
"JetBlue was founded in trying to be a better airline for customers. Budget airlines were founded in trying to have the absolute bare bones lowest cost," he said. "They may both be startups, but two polar-opposite business models."
The exec was pressed on whether United had considered purchasing JetBlue.
Laughing, Kirby said he was asked that "a lot" and that he was "reluctant" to do a merger.
"Mergers are hard," he said.
Going forward, he said United was focusing on its frequent flyers.
"What we're really looking for is to have a bigger presence for our frequent flyers on both sides of the Hudson," he said. "To be bigger in places like Boston."
Despite outperforming most of its peers in 2024, United announced in April that it would cut about 4% of its domestic capacity starting in July because of softening demand.
Trump's tariffs caused some Canadians and other international travelers to cancel their summer vacations in the United States, which could mean trouble for domestic airlines.
"The company's outlook is dependent on the macro environment, which the company believes is impossible to predict this year with any degree of confidence," the airline said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
U.S. airlines made over $7.2 billion in checked bag fees in 2024
Checked bags are a big business for U.S. airlines, bringing in more than $7 billion in revenue last year, according to data from the Bureau of Transportation Statistics. The fees have brought more revenue to the airlines than it ever had prior to the pandemic, the data shows. Airlines began shifting their checked bag policy in recent years to keep up with what they say are rising operational costs, including higher prices for fuel and increased wages. Most recently, Southwest Airlines announced it will start charging $35 for the first checked bag — after more than 50 years of only charging for a third bag. Changes at Southwest came amid mounting pressure from activist investors to improve its financial performance. The airline in September predicted that new fees would lead to $1.5 billion a year in revenue. Last year, JetBlue brought Uber-style surge pricing to bag-check fees, making it more costly to check luggage during peak travel periods. American Airlines also increased its fees in 2024 from $30 to $35 for the first checked bag. Breaking down the revenue from checked bags for U.S. airlines Checked bags brought in about $7.27 billion in revenue last year for Alaska Airlines, Allegiant Air, American, Breeze Airways, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue, Silver Airways, Southwest, Spirit Airlines, Sun Country and United Airlines, according to the government's data that was last updated on May 6. That is up from $7.07 billion in 2023, Bureau of Transportation Statistics' data shows. In 2022, U.S. airlines made over $6.7 billion in bag fees, another major jump from the $5.3 billion made in 2021. American, Delta and United — the three largest U.S. airlines — made over $1 billion each last year on checked bags — and their revenue from it has been climbing since the COVID-19 pandemic halted air travel in 2020. When the pandemic hit, total checked bag revenue plummeted to $2.84 billion in 2020, down from $5.76 billion in 2019. The wonderfully weird world of artist Luigi Serafini Fans turn out for estate sale at home of Tom Petty Dozens killed in attack near Gaza aid delivery point, witnesses blame IDF, Israel denies involvement 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Hamilton Spectator
2 hours ago
- Hamilton Spectator
Ontario inks trade deals with Saskatchewan and Alberta ahead of meeting with Carney
SASKATOON - Alberta and Saskatchewan signed agreements with Ontario on Sunday to remove trade barriers ahead of a meeting with Prime Minister Mark Carney to hash out a plan they hope will supercharge the economy. The memorandum of understanding between Saskatchewan and Ontario sees both provinces mutually recognize each other's goods, workers and investment, while a statement from the Alberta government says its MOU with Ontario aims to improve the free flow of goods and services between the two provinces. The Alberta statement also says the agreement will simplify requirements for regulated professions such as skilled trades, making it easier for professionals to work across provincial boundaries. Both deals, which were signed in Saskatoon ahead of a first ministers meeting in the city Monday, pledge to advance measures that would see willing provinces allow the sale of alcohol directly to consumers. Ontario Premier Doug Ford said the deals help grow provincial economies as U.S. President Donald Trump threatens more tariffs on Canadian steel. 'We're going to band together,' Ford said when talking about the agreement with Saskatchewan. 'We've never been attacked by any leader in the world like we have by President Trump. He doesn't give two hoots about Canada.' '(But) he's going to have a rude awakening. We're going to fight like we've never fought before.' It's Ford's latest deals with provinces to open trade, measures he says could unlock $200 billion in economic gains. Alberta said its agreement with Ontario also welcomes the possibility of Ontario joining the New West Partnership Trade Agreement, which has worked to streamline regulations and standards across British Columbia, Alberta, Saskatchewan and Manitoba. 'It's time to stop letting outdated rules hold us back and show Canadians what real economic leadership looks like,' Alberta Premier Danielle Smith said in a news release Sunday. The premiers are meeting Monday with Carney to discuss major nation-building projects that could boost the economy. Ford said the prime minister needs to remove regulations to make it easier to build projects. That includes scrapping the Impact Assessment Act, he said. 'It all depends on the speed right now (in getting projects built),' Ford said. Saskatchewan Premier Scott Moe said he's hoping for a port-to-port corridor in Western Canada to ship more goods out of northern B.C. and Hudson Bay in northern Manitoba. 'It's the largest single opportunity that I've seen in my lifetime,' Moe said. 'All we need to do is come together, and then stand by side by side and defend the opportunities we have from a trade perspective. Defend them like hell.' Building more oil and gas pipelines must be part of Canada's future, Moe added. 'If we truly are going to become the strongest economy in the G7 nations, if we truly are going to become a global energy superpower, it means we need to open up the opportunity for all of our industries,' Moe said. 'I think (Carney) is aware that there's a feeling of alienation in certain areas of the nation.' Both Alberta and Saskatchewan have long had grievances with former prime minister Justin Trudeau, who they say made it difficult for the industry to build energy projects. Smith has said more pipelines are the only way to get more products to market efficiently and without one, there could be a national unity crisis. She has called on Carney to scrap the oil and gas emissions cap and clean electricity regulations, repeal industrial carbon pricing and overhaul regulations. But getting a pipeline through Quebec might be difficult. The province had opposed the former Energy East oil pipeline from Alberta and rejected the GNL Quebec project in Saguenay in 2021. However, Quebec Premier François Legault said last month he's open to some projects. Ford said all provinces must be on the same page for any pipeline to move forward. 'I hope (Legault) is going to bring a pipeline through,' he said. 'Last time I checked, Quebecers drive cars, they need gas.' This report by The Canadian Press was first published June 1, 2025.
CBS News
3 hours ago
- CBS News
2 United flights out of San Francisco International Airport diverted over weekend
2 United flights out of SFO diverted within two days 2 United flights out of SFO diverted within two days 2 United flights out of SFO diverted within two days Two United flights were diverted after taking off from San Francisco International Airport over the weekend, the airline said on Sunday. United Airlines Flight 888 took off on Saturday for Beijing but returned to SFO for a maintenance issue. United said the plane had to release fuel to avoid landing overweight. Passengers switched to a new plane and took off later Saturday night. On Sunday, United Airlines Flight 863 was headed to Sydney but was diverted to Honolulu, where it landed safely due to a maintenance issue. United said the flight was canceled and it expects to accommodate its guests.
