According to United Airlines CEO Scott Kirby, low-cost airlines are facing the need to overhaul their business models in order to remain competitive amidst rising fuel costs and other financial pressures impacting the aviation industry as a whole. Kirby highlighted the significant increase in fuel and labor costs, as well as supply chain challenges, as the main factors contributing to these cost pressures. United Airlines' recent earnings report revealed a pre-tax income of $1.6B on an adjusted basis, with a pre-tax margin of 10.8% and diluted EPS of $3.65. The airline's cost per seat mile has risen by 3.5-5% compared to the previous year. However, there has been a decrease in fourth quarter EPS guidance to a range of $1.50-$1.80. Kirby also mentioned that United is reducing aircraft deliveries, leading to a decrease in capacity, although the associated costs are still accounted for. Despite these challenges, Kirby expressed confidence in United Airlines' ability to surpass initial expectations. Furthermore, he projected that Delta and United would contribute to around 98% of revenue growth and 90% of total expected pre-tax profit in the industry. Additionally, Kirby highlighted that Delta recently reported record earnings of $14.55B, with a 59% year-over-year increase in net income. Furthermore, he noted that both Delta and United currently hold a 15-25 margin point advantage over low-cost carriers such as Frontier, Spirit, and Allegiant.