United Airlines CEO Scott Kirby has predicted that Spirit Airlines will not remain in operation for long as the Ultra-Low-Cost Carrier labors under its second bankruptcy filing in 12 months. Kirby has been a strong critic of discount airlines during his tenure at United and called the business model “an interesting experiment” that had ultimately failed.
United has muscled in on some of Spirit’s key markets since the ULCC filed for bankruptcy last month, promising to deliver service on these routes in the event that Spirit folds. While Spirit has slashed service to almost a dozen destinations, the airline remains optimistic that it will stay in business with a second effort at restructuring.
United CEO Predicts Spirit Demise
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Speaking at the US Chamber of Commerce’s 2025 Global Aerospace Summit, Kirby made the prediction that Spirit would soon go out of business, stating that its customers don’t like the airline and that “the consumer has voted.” When asked why he was so confident about this, the CEO responded, “Because I’m good at math.”
Despite emerging from Chapter 11 proceedings in March with a restructured product offering and network, Spirit revealed a $245 million net loss for Q2 2025, a greater loss than the $192 million it posted the previous year. Prior to entering its second bankruptcy stint in August, the carrier warned that it may not be able to continue operating without a sharp improvement in its financial performance.
Spirit responded quickly once it caught wind of Kirby’s comments, praising its new Spirit First and premium economy options before suggesting “maybe that’s why United executives can’t stop yapping about us.” The airline said on its X account,
“Scott is finally right about something – it is all about customers. Our Guests love low fares, especially our new Spirit First and Premium Economy options.”
“Fundamentally Broken” Business Model
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Kirby has been outspoken against the low-cost model over the years, believing that the model simply doesn’t work. He elaborated that “you can’t have a business model that customers hate” built around the principle of “screw the customer.”
While doing better than its rival, Frontier Airlines is another US discount carrier that could be in trouble, posting a larger-than-expected net loss for Q2 2025. And, despite raking in record revenues in Q1 2025, it still turned a net loss that quarter amid rising costs and lower average fares.
Because of the thin margins low-cost airlines operate on, they are often accused of using squeeze tactics on passengers to maximize revenue. Ryanair is one such airline with a name for overcharging for seats, bags and boarding passes, although the Irish LCC is still making billions in profits each year. In Spirit’s case, the airline owes more than half of its revenue to ancillary fees.
What Next For Spirit?
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Spirit filed for Chapter 11 bankruptcy last month, its second time entering bankruptcy protection in less than 12 months. Under its previous restructuring, Spirit converted almost $800 million in debts into equity, but the airline’s CEO, Dave Davis, said “there is much more work to be done” with a second effort at turning things around.
One of these is to make extensive network adjustments. The carrier recently revealed it would drop flights to 11 US cities, namely Albuquerque (ABQ), Birmingham (BHM), Boise (BOI), Chattanooga (CHA), Columbia (CAE), Oakland (OAK), Portland (PDX), Sacramento (SMF), Salt Lake City (SLC), San Diego (SAN), and San José (SJC)
Aircraft Type
Total
Average Age
Airbus A320-200
50
11.7 years
Airbus A320neo
91
4.2 years
Airbus A321-200
22
8.7 years
Airbus A321neo
32
1.3 years
It has already listed dozens of its A320ceo fleet up for sale and will also pursue new leasing agreements ahead of a possible downsizing. Additionally, the airline said it has borrowed the full $275 million available under its revolving credit facility.
IATA Code
UA
ICAO Code
UAL
Year Founded
1931
