The long-term viability of the ultra-low-cost carrier (ULCC) model within the highly competitive airline industry is facing intense scrutiny, brought into sharp relief by a public exchange between two major U.S. airlines. United Airlines’ CEO, Scott Kirby, has issued a stark prediction regarding the future of competitor Spirit Airlines, framing its business strategy as fundamentally unsustainable amidst recent financial challenges, including Spirit’s second bankruptcy filing in less than a year.
The Strategic Divide
Speaking at an industry conference, United’s CEO, Scott Kirby, unequivocally stated his belief that Spirit Airlines is on the verge of collapse. “That is a fundamentally broken business model, and the consumer has voted,” Kirby asserted, adding, “They are going out of business because customers do not like their product.” This sentiment echoes earlier remarks from Kirby, who described the ULCC model as an “interesting experiment” that ultimately “failed,” as reported by Reuters. He further contended that it seems “unlikely to me that Spirit can keep flying because its customers dislike the airline and don’t want to fly.”
Spirit Airlines quickly countered these pronouncements via X, emphasizing customer preference for low fares. Their statement read, “Scott is finally right about something – it is all about customers. Our Guests love low fares, especially our new Spirit First and Premium Economy options. Maybe that’s why United executives can’t stop yapping about us.” This direct rebuttal highlights the core ideological divide regarding consumer value: ultra-low fares versus a more comprehensive service offering.
Market Realignments and Future Outlook
Beyond the war of words, both airlines have initiated strategic actions that underscore the contentious environment. Spirit Airlines recently announced significant route reductions, ceasing service to over a dozen cities including Albuquerque, N.M.; Birmingham, Ala.; Boise, Idaho; Chattanooga, Tenn.; Columbia, S.C.; Oakland, Calif.; Portland, Ore.; Sacramento, Calif.; Salt Lake City, Utah; San Diego, Calif.; and San Jose, Calif., effective the week of October 2. Additionally, a planned service launch in Macon, Ga., scheduled for October 16, has been canceled.
Concurrently, United Airlines has unveiled plans to strategically expand its network, positioning itself to absorb potential market share should Spirit cease operations. Starting January 6, 2026, United will introduce new routes to 15 cities, including key destinations like Fort Lauderdale, Orlando, and Las Vegas. Patrick Quayle, United Airlines’ Senior Vice President of Global Network Planning and Alliances, articulated the rationale behind these additions: “If Spirit suddenly goes out of business, it will be incredibly disruptive, so we’re adding these flights to give their customers other options if they want or need them.” In response to Kirby’s comments, Spirit referred to a previous statement from Senior Vice President of Corporate Communications Duncan Dee, who accused United executives of being “obsessed” with the no-frills carrier, reiterating Spirit’s focus on operational excellence and competition.
The unfolding dynamic between United and Spirit presents a significant case study in airline industry evolution. The outcome will likely influence future investment in and adoption of the ULCC model, potentially redefining market expectations for consumer choice and pricing in air travel.
Oliver brings 12 years of experience turning intimidating financial figures into crystal-clear insights. He once identified a market swing by tracking a company’s suspiciously high stapler orders. When he’s off the clock, Oliver perfects his origami… because folding paper helps him spot market folds before they happen.