United Airlines Chief Believes This Is The World's Only Successful Low-Cost Carrier
In a recent earnings call, United Airlines CEO Scott Kirby praised Irish low-cost carrier听听as "the only remaining successful LCC around the globe" for sticking true to its strategy of avoiding high-cost airports. His analysis came as听听in the US make major changes to their operations and fare structures.
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For what it's worth, Ryanair registered a $1.87 billion profit after tax for FY2025, more than double what British LCC easyJet managed and streets ahead of any other LCC worldwide. The carrier also became the first European airline in history to carry over 200 million passengers in a year.
United CEO Says Ryanair Is World's "Only Successful LCC"
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Speaking during United's second-quarter earnings call on June 17, Kirby noted听听when flying out of prestige airports with high costs, a reality that has typically led most low-cost airlines to serve cheaper, secondary airports. There is no better example of this philosophy than Ryanair, which has made a living out of serving secondary airports across Europe.
Ryanair has also avoided basing itself out of expensive airports like London Heathrow or Charles de Gaulle, instead establishing itself at airports like London Stansted, London Luton and Paris Beauvais, which offer much cheaper operating costs. This is what ultimately allows the airline to stay competitive by driving down fare prices.
Kirby said,
"For what it鈥檚 worth, the only remaining successful LCC around the globe in my view, is Ryanair. And guess what? That鈥檚 because they鈥檙e the only LCC that stayed true to their founding principles and don鈥檛 fly to high-cost airports like London Heathrow or Charles de Gaulle."
How Ryanair Compares To Other LCCs
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Ryanair's FY25 net income didn't quite reach what it earned over FY24, but it was still a record year for the airline in terms of passengers served. Traffic grew by 9% to exceed 200 million for the first time in its history, and it still managed huge profits despite average fare prices dropping by 7% year-on-year.
The world's largest LCC,听, hit听, amounting to a net income of $465 million, which is only around 1/4th of what Ryanair achieved. Below are the most recent full-year results of the world's five largest low-cost airlines by fleet size.
Airline | Recent Yearly Income |
|---|---|
Ryanair | $1.87 billion |
IndiGo | $980 million |
easyJet | $817 million (pre-tax) |
Southwest Airlines | $465 million |
JetBlue | ($795 million) loss |
Looking at other US budget airlines, the worst-performing was Spirit Airlines, which recorded net losses of over $1.2 billion in 2024. Along with JetBlue, Allegiant Air was another loss-making LCC to the tune of $420 million, while Frontier Airlines surprisingly posted a modest $85 million profit in the same period.
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Several budget airlines have adjusted their business strategies and introduced new seating products to meet the growing passenger expectations.
United And Delta Best-Placed US Airlines
Photo:听Wenjie Zheng | Shutterstock
Kirby believes that United and Delta Air Lines are way ahead of the competition in the US, owing to their strong customer bases and optimal route networks. With both airlines continuing to win market share in key battlegrounds, Kirby stated that "the advantages that we have are structural, permanent, irreversible and they鈥檙e growing and it鈥檚 simply not practical to copy them."
It is no secret that United and Delta are well ahead in terms of profitability, particularly in Delta's case, although United has been catching up in recent years.听听(as measured in available seat miles) as well as its most punctual quarter in four years.
Delta has so far registered $2.4 billion in profits for the first half of 2025, while for United, this stands at $1.4 billion. In contrast, American Airlines lost almost $500 million in the first quarter.
- Airline Type
- Hub(s)
- ,听, Guam International Airport,听,听,听,听,听
- Year Founded
- 1931
- Alliance
- CEO
- Scott Kirby
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