Trevor Noah, world-renowned comedian and 2024 Grammy nominee for best comedy album, has taken on a new title: ‘chief tourism comedian for South Africa.’
24.10.2023 - 20:17 / travelpulse.com / Scott Kirby / United Airlines / Andrew Nocella / Rich Thomaselli / Airlines
There is always a method to the madness.
In this case, United Airlines CEO Scott Kirby has criticized ultra low-cost carriers, just as his own brand is trying to boost sales of Basic Economy seats.
Kirby said in a recent call with analysts that the low-cost carriers have "crossed a line" and that their model of offering cheap tickets without premium amenities is unsustainable due to a sharp decline in domestic travel.
"We also expected and now believe it'll happen even faster, that the domestic market is going to see a shakeout," he said during the call. Kirby's comments followed a LinkedIn post in which he said ultra-low-cost carriers will soon face a day of reckoning.
"What's different this time, however, is that the lowest margin airlines are the so-called low-cost carriers, and that's where I think the changes are going to occur," Kirby wrote. "As a result, United is going to emerge in a structurally stronger and sustainable position."
Demand for short haul flights has begun to decline in favor of increased service on international routes. Low-cost carriers such as Spirit and Frontier have already told analysts that they expect earnings to decrease in the third and fourth quarters.
"There are only so many seats Florida, Cancun or Vegas can support in such a short period of time," Andrew Nocella, United's chief commercial officer, said.
Kirby also took a direct shot at Frontier for its new policy on cracking down on passengers who try to bring a carry-on on a flight and pass it off as a personal item just to avoid paying an extra fee. "I mean charging people $99 at the gate and paying your employees a commission to take their purses away crossed the line," Kirby said. "And so while they've gone in one direction, we've gone the other with an improved product."
The CEO said that, at the end of the day, he believes that people are willing to pay more for something like Basic Economy if they know they are going to get more.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Trevor Noah, world-renowned comedian and 2024 Grammy nominee for best comedy album, has taken on a new title: ‘chief tourism comedian for South Africa.’
United Airlines announced the launch of its international winter schedule with 50 additional daily flights compared to last winter.
Low-cost airline Breeze Airways is back with another sale to help travelers save money on airfare through the next year.
American Airlines’ multi-year changes to its ticket distribution have had contentious implications for travel agents. The American Society of Travel Advisors in August filed an unfair trade complaint with the U.S. Department of Transportation, accusing American of causing “substantially higher air ticket prices for consumers and frustrated travel management companies.”
Good morning from Skift. It’s Thursday, November 2. Here’s what you need to know about the business of travel today.
United Airlines Chief Commercial Officer Andrew Nocella does not think the international travel boom has run its course. Far from it.
American Airlines is adjusting its course during the pandemic recovery to boost its profitability, such as by focusing on under-served routes in the U.S. and by making its frequent flyer program an even bigger revenue generator.
Iceland has been a waystation for budget travelers hopping the pond ever since Icelandair first burst on the scene with cheap transatlantic flights in the 1960s. While the deals are often irresistible, doubts crept in about the risks of flying to Iceland on the cheap when in 2019, Icelandic low-cost carrier Wow went bust in spite of (or perhaps because of) stunts like $49 fares from the United States to Europe.
Amid the SAG-AFTRA writer strike, actress Danielle Pinnock needed somewhere to channel her creativity. Her friends were in France for Paris Fashion Week, and she had just returned home from her own trip to Europe, so, naturally, the bed bug infestation in Paris was top of mind.
The airline world has been abuzz the past week about changes United Airlines has made to its boarding policy.
Travel is increasing as more people have taken a trip this past year. Additionally, several airlines have announced more flights that are being added to their itineraries, including many to overseas destinations. United Airlines is one of the major airlines adding to its lineup by ordering more aircraft.
Southwest Airlines executives want investors to be clear about big thing: U.S. travel demand is “healthy.” Southwest leaders repeated the word several times during the third-quarter earnings call Thursday.