United Airlines boss blasts low-cost airlines: Business model is dead!”

United Airlines boss blasts low-cost airlines: Business model is dead!”

In a strong criticism of the budget airline business model, Scott Kirby, CEO of United Airlines, has made a clear statement. He explained that the concept of low-cost airlines such as Ryanair and EasyJet was "dead", citing misleading pricing models aimed at deceiving customers. According to Kirby, consumers are increasingly skeptical because hidden additional costs can quickly undermine the savings. This is backed up by research from NetVoucherCodes, which shows that the actual cost of travel on low-cost airlines is often far higher than advertised prices.

Kirby emphasized that the perceived savings are deceptive because the additional costs raise the price to the level of traditional airlines. Particularly striking are the significant additional costs, which, according to NetVoucherCodes, can reach the following amounts on average: For Ryanair, these costs add up to up to 344% above the ticket price, while Wizz Air and EasyJet have additional costs of 272% and 170%. The average base price for a ticket is 21.50 euros; After adding additional fees, the final price is often over 50 euros.

The hidden costs in detail

Consumer advocates have been warning for years about the many hidden costs that low-cost airlines such as WizzAir, Lauda and Ryanair charge. In addition, there is often not enough information about the free online check-in, forcing many travelers to pay high fees at the airport. According to the Chamber of Labor, no additional fee may be charged for check-in at the airport, but this is often ignored.

• Durchschnittliche Zusatzkosten bei Billigfluglinien:
• Sitzplatzwahl: Ø 9,30 Euro
• Aufgabegepäck: Ø 26,30 Euro
• Handgepäck: Ø 17 Euro

Check-in fees can also cost up to 55 euros, while seat reservations can cost between 4 and 15 euros. In addition, the regulations for hand luggage are often inconsistent, which can also lead to additional costs.

Long-term impact on the market

Despite all these difficulties, low-cost airlines remain very popular, especially in difficult economic times. This circumstance means that airlines such as Ryanair and Eurowings can continue to report high profits despite an 18 percent decline in profits in the first half of 2024. Kirby makes it clear that it's unclear whether structural change is imminent in the industry, but he sees signs that in the long term, customers want more than just a great price - they're looking for trust.

Additionally, experts have warned that keeping track of the actual final price of a booking is becoming increasingly difficult as many basic services are priced separately. One example is Wizzair, which is testing an “all you can fly” flat rate that costs 9.99 euros per flight booking and luggage is not included.

Particularly in a market where even companies like Canadian low-cost airline Canada Jetlines have filed for bankruptcy, it remains to be seen what new approaches airlines will develop to meet the challenges of the changing travel market. Demand will ultimately tell.

In summary, calls for more transparency and fairness in airfare pricing are becoming louder and consumers increasingly want to be informed about the actual costs of their trips. The image of low-cost airlines could change again in the future if they do not respond to the growing needs of their customers.

The information presented in this article is based on findings from various reports, including the recent analysis by Vienna.at, the warnings of the Chamber of Labor and the practical tips from Calf.