United Airlines CEO slams all low-cost airlines but one | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

While the age of cost-cutting has significantly decreased the chasm between them, mainstream airlines remain in a perpetual battle against their low-cost competitors.

Budget airlines offer rock-bottom fares in exchange for a lack of “extras,” such as free bags and seat selection, that large airlines are also increasingly cutting out of their basic economy fares.

As a result, we often see airline heads comment on “the other side.” In a July 17 earnings call, United CEO Scott Kirby called Ryanair (RYAOF) “the only remaining successful LCC [low-cost carrier] around the globe” while quipping that others fly into airports with high fees and then have to set fares that are not much lower than what mainstream carriers offer.

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‘The only successful LCC around the globe’

“For what it’s worth, the only remaining successful LCC around the globe in my view, is Ryanair,” Kirby told investors. “And guess what? That’s because they’re the only LCC that stayed true to their founding principles and don’t fly to high-cost airports like London Heathrow or Charles de Gaulle.”

The Dublin-based airline does indeed avoid the two main airports in these cities by instead flying into secondary ones like Gatwick (LGW) and Luton (LTN) in London and Beauvais (BVA) 80 kilometers outside of Paris. This allows the airline to avoid high airport fees, but pushes away travelers who need to arrive closer to the city.

According to Kirby’s analysis, this strategy reduces landing fees by up to 80% and allows Ryanair to offer fares within the €30-€40 range that were once emblematic of the low-cost airline but are becoming increasingly rare.

On his end, Kirby said that United was working to build out its hubs and launch more route connections in San Francisco, Newark, and Washington Dulles.

CEO Michael O’Leary heads Ryanair, which United Airlines’ CEO deems the only successful low-cost carrier.

Image source&colon; NurPhoto/Getty Images

Amid carrier’s success, Ryanair CEO to get huge bonus and stay on until 2028

Currently the biggest airline in Europe by total passengers served, Dublin-based Ryanair saw its traffic grow by 9% and top 200 million for the first time in 2024. Amid higher fuel costs and challenges around having to rework certain routes, the after-tax profit of €1.61 billion ($1.83 billion USD) is down from the €1.92 billion posted in 2023.

Known for his quick temper and snarky remarks that he periodically made during his 31 years at the helm of Ryanair, CEO Michael O’Leary recently became eligible to purchase 10 million company shares worth €110 million (roughly $125 million USD) after stock of the low-cost carrier stayed above €21 ($23.83 USD) for 28 consecutive days.

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This bonus offer was included in the 2022 deal that prolonged O’Leary’s contract as CEO until the end of the 2027-2028 fiscal year. The stock options will vest as long as O’Leary completes his term. At 64 years old, O’Leary will presumably see it extended even beyond the end of the current term.

“There’ll have to be some discussion, I presume, with the board as to how my remuneration will be fixed from 2028 onwards, if they want me to stay on after 2028,” O’Leary said in a statement on the extension of his contract.