United CEO predicts the downfall of ultra-low-cost airlines like Frontier due to subpar customer service and an unsustainable business model

In a recent interview on “The Air Show” podcast, United Airlines CEO Scott Kirby didn’t hold back in his criticism of ultra-low-cost carriers (ULCCs), stating that they are “going out of business” due to their flawed business model and poor customer service.

Kirby specifically called out carriers like Frontier Airlines and Spirit Airlines for prioritizing cheap costs over customer satisfaction. He even went as far as poking fun at one ULCC for charging $99 for a carry-on bag and giving the agent a commission for collecting the fee.

The United Airlines CEO argued that ULCCs have failed to treat customers right, leading to a decline in business. He highlighted a viral incident involving Frontier Airlines customers being charged exorbitant fees for oversized carry-on bags, which ultimately led to customer complaints and a decline in customer satisfaction.

Kirby emphasized that the focus on offering the lowest prices at the expense of customer service is not a sustainable business model. Recent airline rankings based on customer satisfaction scores support Kirby’s claims, with Frontier and Spirit ranking poorly in customer satisfaction surveys.

Despite the struggles faced by ULCCs, Kirby acknowledged that they have forced legacy carriers like United to adapt and offer their own version of a cheap ticket. United’s basic economy fare now mirrors the stripped-down offerings of ULCCs, but still includes some mainline coach perks.

As ULCCs continue to face challenges in the industry, Kirby’s comments shed light on the importance of balancing cost with customer service to ensure long-term success in the airline industry.