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United Airlines CEO Scott Kirby has expressed concerns about the impact of the 2028 Olympic Games in Los Angeles on airline business, stating that the event may be a net negative for carriers operating in the city. According to Kirby, while leisure travel is expected to increase during the Olympics, core business travel patterns are likely to freeze as corporate clients often avoid host cities due to overcrowding and impose travel freezes.
Kirby explained that this shift results in airlines losing high-yield revenue from corporate travelers, with seats instead being filled by cost-sensitive tourists who tend to spend less on ancillary services. The increased congestion caused by limited gate availability and airspace restrictions also raises operational costs and reduces schedule flexibility for airlines like United. Additionally, disruptions to network flows make connecting traffic less efficient.
Addressing these challenges, Kirby said: "The Olympics, interestingly for airlines, lead to less demand. When the Olympics come to town, business travel shuts down. We’re going to add flights, and we’re going to be a participant. It’s not a big deal, but it actually is a net negative for airlines when the Olympics come to town."
