The Message Is Clear: Air Passengers Want Low Cost

New Puerto Rico Flights from Eastern US on Spirit Airlines
image courtesy of Spirit Airlines
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Written by Linda Hohnholz

Legacy airlines are facing ongoing challenges in their quest for profitability, while low-cost carriers are thriving both in the air and economically.

Low-cost carrier airlines operate with a business model focused on offering lower fares than traditional full-service airlines. These carriers aim to attract budget-conscious travelers by providing no-frills services and often operating more efficiently to keep costs down. They often heavily promote online booking, reducing the need for traditional travel agencies and saving on distribution costs.

According to aviation analysts OAG, Spirit Airlines has emerged victorious over its rivals and is now being hailed as a success story for post-pandemic recovery, joining the ranks of Ryanair and IndiGo as an ultra-low cost carrier.

Spirit Airlines has experienced a 35.2% increase in frequencies since the start of the pandemic, operating nearly 26,000 services in November. Additionally, they have added more than 6,700 seats since 2019, suggesting a growing demand for affordable travel options among passengers.

Legacy airlines are currently facing challenges in restoring their pre-pandemic flight frequencies. Air Canada, Lufthansa, and United Airlines have individually experienced reductions in frequency by 29.9%, 17.2%, and 16.9% respectively, as reported by OAG. This decline may be attributed to various factors, including supply bottlenecks in the aviation industry, manufacturing issues, and a safety certificate scandal earlier in the year. These incidents led to the grounding of flights by several legacy airlines, primarily due to engine recalls and inspections. To ensure the industry’s growth trajectory remains on track, alternative investment and asset management firms are addressing supply chain bottlenecks, specifically focusing on engine repairs.

Eastar Jet, a Korean airline, recently secured a substantial capital infusion and entered into an agreement to lease five brand-new Boeing 737 MAX 8 planes. In the APAC region, both IndiGo, India’s prominent low-cost carrier, and Air China have experienced notable increases in flight frequency, with IndiGo reporting a 29.5% rise and Air China reporting a 20.3% increase.

About the author

Avatar of Linda Hohnholz

Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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