DUBLIN- United Airlines (UA) CEO Scott Kirby praises Ryanair (FR) as the world’s only successful low-cost carrier, citing its strategic focus on low-cost airports. This article examines Ryanair’s distinctive business model and compares its performance to that of other low-cost airlines in 2025.
Ryanair’s success, marked by a $1.87 billion profit and over 200 million passengers in FY2025, sets it apart from struggling US low-cost carriers, such as Spirit (NK) and JetBlue (B6). Kirby’s analysis highlights why Ryanair thrives while others falter.
Photo: Ryanair Boeing 737-800 – Free photo on PixabayUnited CEO Calls Ryanair Successful LCC
On June 17, 2025, United Airlines (UA) CEO Scott Kirby, speaking during an earnings call, declared Ryanair (FR) as the only successful low-cost carrier (LCC) globally, attributing its success to a disciplined strategy of operating from low-cost, secondary airports like London Stansted (STN) and Paris Beauvais (BVA).
Unlike competitors, Ryanair avoids high-cost hubs such as London Heathrow (LHR) or Paris Charles de Gaulle (CDG), which allows it to maintain competitive fares.
According to Simple Flying, Kirby emphasized that Ryanair’s adherence to its founding principles, prioritizing cost efficiency over prestige, sets it apart in a challenging industry landscape.
This approach has enabled Ryanair to achieve a $1.87 billion profit after tax in FY2025, despite a 7% drop in average fares, and serve a record 200 million passengers, a 9% increase year-on-year.
Ryanair’s model contrasts sharply with US LCCs, many of which face financial difficulties. Kirby noted that operating from expensive airports burdens LCCs with costs that erode profitability.
Ryanair’s focus on secondary airports reduces landing fees by up to 80%, a strategy that keeps fares low and attracts price-sensitive travelers.
This cost discipline, combined with high passenger volumes, has made Ryanair Europe’s most profitable airline, a feat Kirby believes no other LCC consistently matches.
Photo: Scott Kirby LinkedIn PageFinancial Overview
Here’s how the world’s largest LCCs performed financially in their most recent fiscal year:
| Ryanair (FR) | $1.87 billion |
| IndiGo (6E) | $980 million |
| easyJet (U2)* | $817 million (pre-tax) |
| Southwest Airlines (WN) | $465 million |
| JetBlue (B6) | -$795 million (loss) |
Among US-based LCCs, Spirit Airlines (NK) reported over $1.2 billion in losses, while Allegiant Air (G4) also posted a $420 million net loss.
Surprisingly, Frontier Airlines (F9) managed a modest $85 million profit, making it the only US budget carrier in the black aside from Southwest.
Photo: Clément AlloingUnited and Delta’s Competition
Kirby’s praise for Ryanair comes alongside his confidence in United Airlines (UA) and Delta Air Lines (DL) as the leading US carriers. He described their advantages, strong customer bases, and optimized route networks as “structural, permanent, and irreversible.”
In the first half of 2025, Delta reported $2.4 billion profit, while United reported $1.4 billion profit, contrasting sharply with American Airlines’ (AA) $500 million Q1 loss.
United’s second quarter of 2025 was its busiest ever, with record available seat miles and its most punctual performance in four years.
Kirby’s critique of US LCCs centers on their struggle to balance low fares with profitability in high-cost environments. He argues that carriers like Spirit (NK) and JetBlue (B6) have grown too large to rely on one-time customers, yet their service models deter repeat business.
Ryanair, by contrast, leverages its cost structure to offer consistently low fares, fostering customer loyalty through reliability and affordability.
Photo: By kitmasterbloke – https://www.flickr.com/photos/58415659@N00/51752028899/, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=114422105Future of LLCs
The contrast between Ryanair’s success and the struggles of its global peers highlights a critical lesson in the airline industry. Disciplined adherence to a low-cost strategy is essential for long-term viability.
As high airport costs and operational inefficiencies mount, Ryanair’s consistent performance sets a blueprint for others aiming to survive in this turbulent sector.
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