During United Airlines' earnings call, CEO Scott Kirby criticized the viability of low-cost carriers (LCCs) operating at major airports, citing high operational costs. Kirby noted that LCCs incur 72% of their fares in airport expenses, which he deemed unsustainable for profitability. In contrast, San Francisco International Airport (SFO) spokesperson Doug Yakel defended the presence of LCCs at SFO, underscoring its diverse range of over 50 airlines. Despite diverse competition, United remains the dominant airline at SFO, holding nearly half of the market share, highlighting the ongoing tension between legacy and low-cost carriers.
"It's just math. This has been driven by economic reality," Kirby stated, emphasizing the unsustainable costs low-cost carriers face in major airports.
"When an airline is spending 72% of their fare on airport costs, it's hard for me to imagine that they could ever be profitable at those airports," asserted Kirby.
SFO spokesperson Yakel highlighted, "SFO has the third most air carrier diversity of any US airport with over 50 airlines," challenging Kirby's claims.
Kirby has long criticized low-cost carriers, referring to their model as "fundamentally flawed" and claiming "the customers hate it."
Collection
[
|
...
]