United CEO Predicts Spirit Airlines Collapse, Calls Discount Airline Model Unsustainable

Benzinga

United Airlines CEO Scott Kirby said Spirit Airlines is going out of business and declared the discount airline model “dead," according to CNBC. Spirit filed for Chapter 11 bankruptcy last month for the second time in a year after demand weakened and costs stayed high. Spirit cut a dozen destinations while rivals like United, JetBlue, and Frontier expanded service to those same cities. Kirby said discount airlines’ growth-driven, fee-heavy model is unsustainable. Spirit responded on X, saying customers love its low fares and new premium options, and mocked United executives for constantly talking about the airline.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02United Airlines CEO Scott Kirby said Spirit Airlines is going out of business

00:06and declared the discount airline model dead, according to CNBC.

00:09Spirit filed for Chapter 11 bankruptcy last month for the second time in a year

00:13when demand weakened and cost stayed high.

00:16Spirit cut a dozen destinations while rivals like United, JetBlue, and Frontier

00:19expanded service to those same cities.

00:22Kirby said Discount Airlines' growth-driven fee-heavy model is unsustainable.

00:25Spirit responded on X saying customers love its low fares and new premium options.

00:30Knocked United executives for constantly talking about the airline.

00:33For all things money, visit Benzinga.com.

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