United Airlines CEO Scott Kirby slams the budget airline model: 'It's dead'

Core Viewpoint - United Airlines CEO Scott Kirby criticized the low-cost carrier model, labeling it as "dead" and stating that it was designed to "screw the customer" [1][2] Group 1: Critique of Budget Airlines - Kirby described the budget airline model as one that tricks customers into purchasing tickets and then imposes unexpected fees, with disclosures hidden in legal jargon [2] - He noted that budget airlines have struggled to retain repeat customers as they grew larger [2] Group 2: United Airlines and JetBlue Partnership - United Airlines announced a new partnership with JetBlue, named Blue Sky, which will provide access to slots for up to seven daily round-trip flights from JFK's Terminal 6 starting in 2027, pending regulatory review [3] - The partnership will enable customers to earn and use frequent flyer miles across both airlines, distinguishing JetBlue from traditional budget carriers [3][4] Group 3: Future Focus and Capacity Adjustments - Kirby emphasized that United Airlines is focusing on enhancing its presence for frequent flyers, particularly in markets like Boston [5] - Despite outperforming many competitors in 2024, United plans to cut about 4% of its domestic capacity starting in July due to softening demand, influenced by external factors such as tariffs affecting international travelers [5][6] Group 4: Market Outlook - The company's outlook is heavily influenced by the macroeconomic environment, which it finds difficult to predict with confidence this year [6]