Low-cost airlines have grown exponentially worldwide over the past few years, owing to a rise in economic activities, ease of travel, development of the travel & tourism industry, rapid urbanization, changes in lifestyle, consumers’ preference for low-cost service along with non-stops, and frequent service.Low Cost Airlines market

The major companies profiled in the low-cost airlines market size include Air Arabia PJSC, AirAsia Group Berhad, Alaska Air Group, Inc., Azul S.A., EasyJet Plc, New World Aviation, Inc., Norwegian Air Shuttle ASA, Qantas Airways Limited, Ryanair Holdings Plc., and Westjet Airlines Ltd.

A low-cost airline is a passenger carrier, that offers travel service at relatively affordable and competitive rates as compared to other airlines (full-service or traditional airlines). Some of the popular low-cost airlines include Ryanair, EasyJet, Air Asia, and Qantas Airways.

The feasibility of the operation of low-cost airlines is attributed to its low-cost model. This low-cost model can include characteristics such as a low pricing strategy, a simple pricing structure, online & direct ticket booking (eliminating extra ground staff & vendors), preference for a secondary airport, a point-to-point network, a single-class seating arrangement, a ticket fare that may not include extra services (food & beverage), intensive aircraft usage, a short turnaround time, dense seating arrangements, and secondary revenue sources (advertisement and onboard selling).

Low-cost airlines have grown exponentially worldwide over the past few years, owing to the rise in economic activities, ease of travel, development of the travel & tourism industry, rapid urbanization, changes in lifestyle, consumers’ preference for low-cost service along with non-stops, and frequent service. Moreover, the increase in purchasing power of middle-class households, especially in developing regions, and high internet penetration coupled with e-literacy notably contribute toward the growth of the global low-cost airline market. However, factors such as volatile crude oil prices, and increases in terrorism & crime rate, political uncertainty, & natural calamities hinder market growth. Furthermore, the increase in cases of COVID-19 is leading to travel restrictions, which is severely affecting the market.

Improvements in economic conditions and a surge in disposable income are significant factors that propel the growth of the low-cost airline market. After the 2009 economic crisis in Europe and the economic crisis in China, the world economy witnessed a standstill. However, a strong recovery from the crisis resulted in notable economic growth, especially in developing economies, and has led to an increase in disposable income among middle-income groups. In addition, the disposable income of individuals in Asia-Pacific has witnessed a high growth rate, thus acting as a major driver for the market.

Scope

• The report provides an in-depth analysis of the key market trends that are shaping the future of this segment and an analysis of the low-cost airline market globally. Detailed market insight is provided on the Americas, Asia-Pacific, Middle East & Africa, and Europe.
• It also features profiles of some of the segment’s leading players and looks at how companies can better meet their customers’ needs.

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