United Airlines CEO Scott Kirby says that Frontier and Spirit are on their way to “going out of business.” Kirby says that both airlines have a “flawed business model” and poor customer service.
Both Spirit and Frontier offer ultra-low fares but have stipulations that could turn passengers off. These airlines are known for charging passengers for oversized carry-on bags that are sometimes more expensive than the ticket itself.
The United Airlines CEO pointed out that Frontier provides bonuses to gate agents who flag oversized luggage. This could result in passengers being charged an extra $99.
Kirby told The Air Show podcast on Monday, “You can do it once, but you don’t get to do it to them twice.” He added, “And those airlines grew big enough that they actually need repeat customers.”
“They haven’t treated customers right,” the United CEO said.
Frontier and Spirit
Frontier and Spirit ranked last and second to the last, respectively, in a JD Power 2024 customer survey.
According to Frontier CEO Barry Biffle in a recent comment, “lowest cost always wins.” However, Kirby thinks that Biffle is “dead wrong” about this. Instead, Kirby thinks that “Best service always wins.”
When asked what he thinks is the future of ultra-low-cost carriers, he said, “I think they’re going out of business.” But despite his opinion regarding their future, Kirby praised the two airlines for shaking up the airline industry.
For Kirby, passengers “want the lowest price, and they’re willing to have a disaggregated price.” And given the presence of these ultra-low-cost airlines, the United CEO says that this made them “build a basic economy cup.”
United has no-frills fares similar to what Spirit and Frontier offer. This includes no-carry-on fee, and passengers are not allowed to cancel or change the ticket.
Rigged Game
Earlier this year, Spirit CEO Ted Christie called the airline industry a “rigged game.” He accused the industry of favoring the “Big Four,” namely United, Delta, Southwest, and American.
