Breeze CEO on Low-Cost Carriers' Future and 'The Piss-Off Factor' Keeping Tourists Away
The drop in interest in traveling to the U.S. is real, and it very well may fade as Breeze's CEO says. But repairing the brand damage will take time.
As the U.S. airline industry faces growing economic uncertainty and negative travel sentiment, serial airline entrepreneur David Neeleman thinks the phase will pass.
The Breeze Airways CEO also has thoughts on reforming the ultra-low-cost model, one that United Airlines CEO Scott Kirby recently declared was “dead.”
Skift spoke with Neeleman in a wide-ranging interview about the state of ultra-low-cost carriers, tariffs, and the Trump administration’s travel policies. Here are four takeaways:
Is the Ultra-Low-Cost Model Actually Dead?Kirby commented on the state of ultra-low-cost carriers during a Wall Street Journal event in May, also saying that “the model was screwed.”
Neeleman said he thought Kirby “makes a really good point.”
“I don't think they're gone for good, but I do think they got really big,” he said. “And not only from the number of planes, but the size of their planes, which kind of force them into hubs and force them to compete wing tip-to-wing tip with the big incumbent carriers.”
He added that the rise of basic economy allowed legacy carriers like American, Delta, and United to compete more effectively with ultra-low-cos
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