Higher Fares Are Here to Stay, United CEO Says

Don’t blame only surging fuel prices for higher airfares, says United Airlines CEO Scott Kirby. Instead, blame overall inflation — and the disappearance of Spirit Airlines’ rock-bottom fares.

“Cost inflation is what is driving fares higher,” Kirby said on a call with analysts Thursday, referring to higher non-fuel costs such as airport fees, maintenance, and labor. 

Airfares across the board have increased 20% this year. 

“This is about a structural change in the cost side of the business, which is forcing a structural change in the pricing and revenue side of the business,” he said. 

Fuel remains an important factor as well, and United implemented another broad fare increase this