United CEO Declares Ultra-Low-Cost Airline Model Unviable Amid Spirit Bankruptcy

United Airlines CEO Scott Kirby has declared the ultra-low-cost carrier (ULCC) business model unviable, calling it a failed experiment based on consumer rejection. Kirby specifically criticized Spirit Airlines, which recently filed for bankruptcy protection for the second time in under a year, asserting that customers dislike its product and that the airline is unlikely to survive. Spirit responded by highlighting customer appreciation for its low fares and new premium options. The ULCC model, which relies heavily on low base fares with numerous ancillary fees, has struggled amid financial pressures and increased competition from major carriers offering basic economy fares. Analysts note that ULCCs' large, densely configured aircraft have been difficult to fill profitably in the current market. This clash underscores the shifting dynamics in the U.S. airline industry as legacy carriers and ULCCs vie for market share.