United CEO Warns Olympics Could Be ‘Net Negative’ For Airlines In L.A.

Despite the excitement and economic boost expected from the 2028 Los Angeles Olympics, United Airlines CEO Scott Kirby has raised concerns about the event’s impact on the airline industry. In a recent interview with the Los Angeles Times, Kirby cautioned that the Olympic Games might actually result in decreased demand for airlines rather than the anticipated surge in business. According to Kirby, the Olympics typically cause business travel to shut down when they arrive in a host city, creating a potential “net negative” effect on airline operations.

United Airlines’ Olympics Challenges

Contrary to popular belief that major international events boost airline traffic, Kirby explained that the Olympics create unique challenges for carriers. “The Olympics, interestingly, for airlines, lead to less demand. When the Olympics come to town, business travel shuts down,” Kirby told the Los Angeles Times.

Compounding the Olympic challenge are existing limitations at the Los Angeles International Airport that restrict United’s ability to expand services. Kirby highlighted that United currently operates approximately 140 flights daily from just 21 gates at LAX, which he described as the airline’s “highest gate utilization airport.”

This infrastructure bottleneck means United cannot easily increase capacity to accommodate Olympic traffic without sacrificing existing routes. “Our constraint on growth in Los Angeles is the gates. Essentially, if we want to add a new route, we have to cancel our current route. We just don’t have enough gates yet,” Kirby explained.

Post-Pandemic Travel Resurgence

Despite these Olympic concerns, Kirby shared optimistic news about current travel trends, noting an uptick in bookings since Labor Day following a sluggish start to 2025. He described the shift in demand as though “a light switch got flipped back on” around the end of June, with stronger-than-expected momentum continuing into the fall. “I think the economy is in better shape than most people think. A lot of the economic statistics are trailing. We’re a good real-time indicator,” Kirby stated.

Kirby also addressed broader industry dynamics, particularly criticizing the ultra-low-cost carrier business model exemplified by airlines like Spirit, which has recently reduced its presence in California. “Ultra low-cost carriers, I don’t think they work. Primarily because their business model was based on bait and switch with customers,” Kirby asserted.

He argued that strategies relying on low headline fares with hidden additional costs ultimately undermine customer trust. “When your business model is based on screwing the customer, that business model is not going to work in any industry,” he added.

The post United CEO Warns Olympics Could Be ‘Net Negative’ For Airlines In L.A. appeared first on Travel Noire.