United CEO Expects Spirit Airlines Bankruptcy, Market Exit

United Airlines CEO Scott Kirby has predicted that Spirit Airlines will go out of business by the end of 2025, citing the unsustainability of the ultra-low-cost carrier (ULCC) business model. Kirby criticized the model as one that customers dislike, describing it as "an interesting experiment" that ultimately failed due to its reliance on low fares paired with numerous fees, which alienate consumers. Despite Spirit's recent attempts to restructure and introduce premium offerings, the airline filed for Chapter 11 bankruptcy for the second time in 12 months and reported substantial financial losses. United has begun adding routes into Spirit's markets, anticipating Spirit's exit, though Kirby denied plans to acquire Spirit's assets such as gates in Fort Lauderdale. Spirit has pushed back on Kirby's remarks, emphasizing customer appreciation for their low fares and new service options. Industry experts and analysts agree that rising labor and fuel costs have made the ULCC model increasingly difficult to sustain, while legacy carriers focusing on premium services continue to perform better.