First-class Delta flyers out of New York’s JFK now have a new premium perk: A lounge that’s just for them.
05.06.2024 - 15:49 / insider.com / Spirit Airlines / Scott Kirby / Barry Biffle / United Airlines
Ultra-low-cost airlines are taking one out of left field.
In a candid interview with The Air Show podcast published on Monday, United Airlines CEO Scott Kirby said the carriers are "going out of business" due to bad business strategy and poor customer service.
"It's a fundamentally flawed business model," he said. "The customers hate it."
Kirby's comments point to no-frills carriers like Frontier Airlines and Spirit Airlines, which offer cheap tickets thanks to their unbundled fares and barebones planes. Usually, these lower fares are at the expense of passenger comfort.
In a bid to attract more customers, the ultra-low-cost carriers, or ULCCs, have improved their operations with more free and premium perks, like Spirit dropping change fees and Frontier adding an "UpFront Plus" seat that resembles European business class.
Kirby, however, argued this shift in focus from leisure to premium offerings suggests an "internal acknowledgment that the [ultra-low-cost] business model doesn't work."
But above all else, Kirby said one "fundamental issue" has cost ULCCs a lot of business: "They haven't treated customers right."
Related stories
He gave an example of an unnamed competitor that he said "started charging $99 for your carry-on bag," noting a commission was then paid out for collecting the steep fee from the customer.
Kirby is likely referring to the viral interactions between Frontier customers and ticket agents that surfaced on TikTok last year. Customers were reportedly forced to pay $99 per piece of luggage that fit into the airline's bag checker, and Frontier later admitted it offered a bonus to those who caught oversize carry-ons.
"You can do it once, but you don't get to do it to them twice," Kirby said. "And those airlines grew big enough that they actually need repeat customers."
Kirby's stance is further expressed in his response to Frontier CEO Barry Biffle's reported comment that the "lowest cost always wins."
"He's dead wrong…Best service always wins," Kirby said.
Recent airline rankings by customer satisfaction scores back up Kirby's claims.
Regarding the economy experience, Frontier and Spirit ranked last and second to last, respectively, in JD Power's 2024 survey that examined 11 North American airlines.
According to the Department of Transportation, the pair also had the highest rate of customer complaints among US airlines in 2023.
Still, Kirby did give credit where it's due, saying the well-built "mousetrap" low-cost carriers use to lure in infrequent flyers who care about price over loyalty have forced United to adapt and create its own version of a cheap ticket.
"They want the lowest price, and they're willing to have a disaggregated price," he said. "So, we needed to build a
First-class Delta flyers out of New York’s JFK now have a new premium perk: A lounge that’s just for them.
American Airlines’ flight attendants’ union said Thursday that it did not reach a new contract with management. The union added that the National Mediation Board is debating whether to release both parties into a 30-day cooling off period, which could set the stage for a strike.
American Airlines is pausing pilot hiring as it reevaluates its growth plans for the year. The carrier said it would temporarily pause new pilot hiring in September, October and November.
Ultra-low-cost carriers, or ULCCs, were a saving grace in college when I had limited fun money. I didn't care about the barebones planes or stuffing everything into a personal item so long as I could travel cheaply.
JetBlue is making a big change to its baggage policy. From September, the airline will allow all passengers — even those on its most restrictive ‘Blue Basic’ fare — to bring a carry-on bag for no extra charge.
Spirit Airlines continues to tweak its network to chase more demand.
New Zealand is eager to get its tourism sector back to full-throttle after the country was entirely shut during the pandemic. One way to do this is to attract more tourists beyond the popular December to February months.
The results for the most punctual domestic airlines from May 2024 are in, offering a glimpse of what travelers can expect heading into the peak summer season.
Since I got the travel bug in college, I've spent a lot of time on US airlines — but mostly on ultra-low-cost carriers, or ULCCs, like Spirit Airlines and Frontier Airlines
The busy summer travel season is here, and airlines are working hard to keep their planes and people moving without much headache to the customer.
As the 2024 presidential election begins to heat up, United Airlines and American Airlines are increasing capacity to Milwaukee and Chicago, the two cities that will host the Republican and Democratic National Conventions, respectively.
Low-cost airline Norse Atlantic Airways is turning two, and celebrating its milestone anniversary with one-way flights to Europe starting at just $149.