Global Low Cost Airline Market by Product Type (Domestic, International), By Application (Leisure Travel, Business Travel), By Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2021-2030 (Includes Business Impact of COVID-19)

                                          
Report updated on 11th September, 2021: Global Low Cost Airline Market by Product Type (Domestic, International), By Application (Leisure Travel, Business Travel), By Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2021-2030 (Includes Business Impact of COVID-19)
Trusted Business Insights has published a comprehensive market research report on, Global Low Cost Airline Market by Product Type(Domestic, International), By Application(Leisure Travel, Business Travel, Others), and by Region -Global Forecast to 2030. It offers a holistic view of the Global Low Cost Airline Market through systematic segmentation that covers every aspect of the target market.

The Global Low Cost Airline Market was valued at US$ 234,097.2 Mn in 2020 to reach US$ 543,017.2 Mn by 2030 at a CAGR of 8.8%.

Low Cost airlines are passenger airlines offering travelling service tickets at a comparatively cheaper rate than full service or traditional airlines. Low Cost airlines are also known as prizefighters, Low Cost carriers (LCC), frills airlines, budget airlines and discount airlines. During the 1970s, the American domestic carrier -Southwest - introduced the concept of Low Cost airlines with the sole objective of providing discounted airfares to consumers. The basis of operation of Low Cost airlines remains the same, which is to offer most economical prices to the consumer by undercutting price levels of flagship carriers.

The operational feasibility of Low Cost airlines is attributed to its Low Cost model. The Low Cost model is a ˜modified version of the Southwest Low Cost model of operation. The model includes a Low Cost leadership position strategy. The goal of this strategy is to create a sustainable cost advantage over the competition. Currently, there are several airlines competing with each other, resulting in airline companies modifying their strategy to stand out in the competition. The strategy is called a differentiation strategy, in which a company offers differentiated products that the customer values, thus increasing the market share of the company. In mature markets, such as the U.S., differentiation strategy is highly evident, wherein the operators have struck a balance between the service model and Low Cost model, to derive maximum margins.

The idea behind Low Cost airlines revolves around cutting cost to give low price product with bare essentials to consumers. Nowadays, Low Cost airlines are adopting several ways to tackle this opportunity, which includes simple pricing structure, pricing strategy, online and direct ticket booking, point-to-point network, preference to secondary airport, single class seating arrangement, intensive aircraft usage, dense seating arrangements and others, in order to gain a competitive edge over its peers.


Global Low Cost Airline Market Revenue (US$ Mn), 2021 to 2030


Significant rise in the disposable income of individuals and growth in the income of the middle class, particularly in developing economies, is a key factor responsible for the growth of the Global Low Cost Airlines Market.

Increasing preference towards air travel, owing to ease of travel, urbanization and changing the lifestyle of consumers is a factor expected to fuel the growth of Global Low Cost Airlines Market.
High investment in airlines but low profitability is another challenge for vendors operating in this market. Major companies have reduced their flight charges to acquire a large customer base. However, these companies incur low margins, which makes it difficult to sustain in the market for a longer term.


Global Low Cost Airline Market by Product Type, 2018


Global Low Cost Airlines Market is segmented on the basis of product type, application and region. The international segment is estimated to be the most lucrative segment, under the product type, in Global Low Cost Airlines Market.

On the basis of region, the market is segmented into North America, South America, Europe, Japan, China, Southeast Asia, India, MEA and the rest of the world. Europe accounts for the majority share in the Global Low Cost Airlines Market, followed by China.

The research report on the global Low Cost airline market includes profiles of some of major companies such as AirAsia Group Berhad, Norwegian Air Shuttle ASA, easyJet plc, Ryanair Holdings plc, Alaska Air Group, Inc., WestJet Airlines Ltd., Qantas Airways, International Consolidated Airlines Group, S.A., Go Airlines (India) Ltd., GOL Linhas Aereas Inteligentes S.A., SpiceJet Limited, Dubai Aviation Corporation, JetBlue Airways Corporation, Air Arabia PJSC, Southwest Airlines Co. etc.


Key Market Segments:


By Purpose

  
Leisure Travel
  
VFR
  
Business Travel
  
Others

By Destination

  
Domestic
  
International

By Distribution Channel

  
Online
  
Travel Agency
  
Others


Key Market Players included in the report:


  
Air Arabia PJSC
  
AirAsia Group Berhad
  
Alaska Air Group Inc.
  
Dubai Aviation Corporation
  
easyJet plc
  
Gol Linhas Aereas Inteligentes SA
  
International Consolidated Airlines Group S.A.
  
JetBlue Airways Corporation
  
Norwegian Air Shuttle ASA
  
Qantas Airways
  
Ryanair Holdings plc
  
Southwest Airlines Co.
  
SpiceJet Limited
  
WestJet Airlines Ltd.


Below are the key development related to Low Cost Airline Market in 2020 and 2021.


July 2021: Flair Airlines Launches Low Cost Flights To The United States. Ultra-low-cost carrier Flair Airlines is continuing on its path of aggressive growth in the Canadian aviation sector. But instead of announcing new domestic services as it has in recent weeks, the airline is taking a big, bold leap into international operations with flights to the United States. Set to launch in October, the airline plans to capitalize on the desire of Canadians to get away to warmer and brighter destinations during the colder, wetter months up north. Source

June 2021: Korean Air on track for Asiana acquisition. Korean Air has cleared another milestone in its acquisition of Asiana Airlines, with state-backed Korea Development Bank (KDB) approving the carriers’ integration plan. The approval comes about three months after the carrier’s submission of its post-merger plan to KDB. The SkyTeam carrier says the next step in the merger — which it aims to complete by 2024 — will be to await necessary regulatory approvals. So far, Turkey, The Philippines and Thailand have given the green light for the acquisition. Korean Air is also awaiting approval from regulatory bodies in South Korea, the USA, the European Union, China and Japan. Source

April 2021: JAL to make low-cost carrier Spring Airlines Japan a subsidiary. Japan Airlines Co. is planning to make a unit of Chinese low-cost carrier Spring Airlines Co. a subsidiary to meet an expected recovery in tourism demand after the coronavirus pandemic subsides, sources familiar with the matter said Sunday. JAL, which currently has about a 5% stake in Spring Airlines Japan Co., will invest an additional several billion yen possibly in June to increase its stake to 51% or more, the sources said. JAL is eager to cash in on the projected return of Chinese tourists to Japan following the end of the pandemic. The company is expected to release details of the investment in its midterm business plan to be released on May 7, they said. In November, JAL raised around ¥180 billion ($1.7 billion) through a public stock offering and other means to survive the pandemic and cover replacement costs for its fleet. The company has said it will allocate ¥10 billion of the total to investments toward Spring Airlines Japan and Jetstar Japan Co., a budget airline in which JAL has a 50% stake. Source