Low-Cost Airline Market Status (2016-2020) and Forecast Market Analysis, Regional Outlook, Segment Growth Potential, and Competitive Market Share Analysis, 2021-2027
Report Description
The global Low-Cost Airline market size is estimated at USD 160,051.8 million in 2020, expanding at a CAGR 8.6% from 2021-2027 to reach 168,704.1 million USD in 2027.
Market Dynamics
Low-cost carriers, commonly known as low-cost airlines, provide lower tickets and fewer facilities than typical full-service airlines. Low-cost airlines are customer airlines that provide travel tickets at a lower cost than some other airlines (full service or traditional airlines). Low-cost airlines are sometimes referred to as low-cost carriers (LCC), prizefighters, budget airlines, and bargain airlines. Ryanair and EasyJet are two popular low-cost airlines.
The low-cost model is responsible for the viability of low-cost airlines. This low-cost version has some of the following characteristics: simple pricing structure, low pricing strategy, preference for secondary airports, online & direct ticket booking single class seating arrangement, point-to-point network, intensive aircraft usage, ticket freight may not include additional services, dense seating arrangements, short turnaround time, secondary revenue source, and other.
Low-cost airlines have increased dramatically in recent years as a result of the increased growth in the economy, easiness of travel, urbanization, the travel and tourism industry, consumers' desire for low-cost service with non-stops and regular service, lifestyle changes, an increase in the purchasing power of middle-class households, and high bandwidth penetration. The industry is being driven primarily by a rise in global air passenger traffic as well as increased demand for low-cost airlines. High aircraft utilization, online booking, usage of subsequent airports, decreased salary grades, minimal flight attendants, reduced rates of staff unionization, best practices of seats, and quick ground turnaround times are just a few of the other elements moving the business forward.
Regional Insight
North America dominates the LCC market. This trend is projected to continue during the projection period due to the participation of notable LCC carriers such as Southwest Airlines Co., JetBlue Airways Corporation, WestJet Airlines Ltd, and Spirit Airlines, Inc. The most seats were held by the United States (US), followed by Spain and the UK. The rise in seat sales may be ascribed mostly to growing domestic demand.
Furthermore, the primary reason for the rise of low-cost airlines in countries such as India has indeed been straightforward: cheaper fares. The market in India is famously price-sensitive, which means that travelers are eager to fly with whichever airline provides the lowest route to their destination. Airlines' loyalty and in-flight amenities all take a second seat to ticket pricing, making India a one-of-a-kind market in this sense.
Segment Insights
The Low-Cost Airline market is divided into three segments: aircraft type, operations, and distribution channel. According to aircraft type, the narrow-body category is predicted to develop at the fastest CAGR throughout the projection period. The growth can be attributed to the growing usage of narrow-body airplanes by airlines. These planes have lower operating costs as compared to wide-body planes and maintaining expenses low is crucial in this business strategy.
Competitive Insights
The Low-Cost Airline market is very competitive, with both domestic and foreign businesses present. To remain competitive, major firms in the business engage in strategic mergers and acquisitions, partnerships, and new product releases. For example, IndiGo, India's biggest carrier, identified Pantnagar as the next target on the 6E network on February 23, 2022. As part of its summer 2022 schedule, the airline will fly ATR planes for 6E unique daily flights from Pantnagar to Dehradun, as well as new flights to Delhi, beginning March 27, 2022. These additional flights will improve connections between Pantnagar as well as the national and state capitals. Pantnagar will become the airline's second stop in Uttarakhand.
The report begins with an overview of the Industry Chain structure, and describes the industry environment, then analyses the market size and forecast of Low-Cost airlines by aircraft Type, Operation coverage, region, and distribution channel. In addition, this report introduces the market competition situation among the vendors, and the company profile, besides, market price analysis, and value chain features are covered in this report.
Company Coverage (Company Profile, Sales Revenue, Price, Gross Margin, Main Products etc.):
- WestJet Airlines Ltd
- Spirit Airlines, Inc.
- SpiceJet Limited
- Southwest Airlines Co.
- Ryanair Holdings plc
- Qantas Airways Limited (Jetstar Airways Pty Ltd.)
- Norwegian Air Shuttle ASA
- NewWorldAir Holdings, Inc.(Indigo, LLC)
- IndiGo
- easyJet plc
- Azul S.A. (Azul Linhas Aéreas Brasileiras S.A.)
- Alaska Air Group, Inc. (Virgin America Inc.)
- AirAsia Berhad
- Air Arabia PJSC
- Go First
Aircraft Type Coverage (Market Size & Forecast, Main Consumer Analysis, etc.):
- Narrow-body aircraft
- Wide-body aircraft
Operation Coverage (Market Size & Forecast, Main Consumer Analysis etc.):
- International
- Domestic
Distribution Channel Coverage (Market Size & Forecast, Main Consumer Analysis etc.):
- Online
- Travel Agency
- Others
Region Coverage (Regional Consumption, Demand & Forecast by Countries etc.):
- North America (U.S., and Canada)
- Europe (Germany, U.K., France, Italy, Spain etc.)
- Asia-Pacific (China, India, Japan, Indonesia, Malaysia, Australia, South Korea, etc.)
- South America (Brazil, Mexico, Argentina etc.)
- Middle East & Africa (Saudi Arabia, Kuwait, UAE, South Africa etc.)
Table Of Content
1. Low-Cost Airline Market Overview
1.1. Product Overview and Scope of Low-Cost Airline
1.2. Global Market Growth Prospects and Revenue Estimates
1.3. Global Low-Cost Airline Market Size Growth Rate Analysis by Aircraft Type 2020 VS 2027
1.3.1. Narrow-body aircraft
1.3.2. Wide-body aircraft
1.4. Global Low-Cost Airline Consumption Comparison by Operation: 2020 VS 2027
1.4.1. International
1.4.2. Domestic
1.5. Global Low-Cost Airline Consumption Comparison by Distribution Channel: 2020 VS 2027
1.5.1. Online
1.5.2. Travel Agency
1.5.3. Others
1.6. Global Low-Cost Airline Market Size Estimates and Forecasts by Region: 2020 VS 2027
1.6.1. North America Low-Cost Airline Estimates
1.6.2. Europe Low-Cost Airline Estimates
1.6.3. China Low-Cost Airline Estimates
1.6.4. Japan Low-Cost Airline Estimates
2. Market Competition by Manufacturers
2.1. Global Low-Cost Airline Revenue Market Share by Manufacturers (2020)
2.2. Low-Cost Airline Market Share by Company Aircraft Type (Tier 1, Tier 2 and Tier 3)
2.3. Global Low-Cost Airline Average Price by Manufacturers (2016-2021)
2.4. Manufacturers Low-Cost Airline Production Sites, Area Served, Product Aircraft Aircraft Aircraft Aircraft Types
2.5. Low-Cost Airline Market Competitive Situation and Trends
2.5.1. Low-Cost Airline Market Concentration Rate
2.5.2. Mergers & Acquisitions, Expansion
3. Global Low-Cost Airline Consumption by Region (2016-2021)
3.1. Global Low-Cost Airline Consumption by Region
3.2. Global Low-Cost Airline Consumption Market Share by Region
3.2.1. North America
3.2.2. North America Low-Cost Airline Consumption Growth Rate (2016-2021)
3.2.3. North America Low-Cost Airline Consumption, Price and Gross Margin (2016-2021)
3.2.4. North America Low-Cost Airline Consumption by Country
3.2.4.1. U.S.
3.2.4.2. Canada
3.2.5. Europe
3.2.6. Europe Low-Cost Airline Consumption Growth Rate (2016-2021)
3.2.7. Europe Low-Cost Airline Consumption, Price and Gross Margin (2016-2021)
3.2.8. Europe Low-Cost Airline Consumption by Country
3.2.8.1. Germany
3.2.8.2. U.K.
3.2.8.3. France
3.2.8.4. Italy
3.2.8.5. Spain
3.2.9. Asia Pacific
3.2.10. Asia Pacific Low-Cost Airline Consumption Growth Rate (2016-2021)
3.2.11. Asia Pacific Low-Cost Airline Consumption, Price and Gross Margin (2016-2021)
3.2.12. Asia Pacific Low-Cost Airline Consumption by Country
3.2.12.1. China
3.2.12.2. India
3.2.12.3. Japan
3.2.12.4. Indonesia
3.2.12.5. Malaysia
3.2.12.6. Australia
3.2.12.7. South Korea
3.2.13. South America
3.2.14. South America Low-Cost Airline Consumption Growth Rate (2016-2021)
3.2.15. South America Low-Cost Airline Consumption, Price and Gross Margin (2016-2021)
3.2.16. South America Low-Cost Airline Consumption by Country
3.2.16.1. Brazil
3.2.16.2. Mexico
3.2.16.3. Argentina
3.2.17. Middle East and Africa
3.2.18. Middle East and Africa Low-Cost Airline Consumption Growth Rate (2016-2021)
3.2.19. Middle East and Africa Low-Cost Airline Consumption, Price and Gross Margin (2016-2021)
3.2.20. Middle East and Africa Low-Cost Airline Consumption by Country
3.2.20.1. Saudi Arabia
3.2.20.2. Kuwait
3.2.20.3. UAE
3.2.20.4. South Africa
4. Global Low-Cost Airline Consumption by Aircraft Type (2016-2021)
4.1. Global Low-Cost Airline Price by Aircraft Type (2016-2021)
4.2. Global Low-Cost Airline Revenue Market Share by Aircraft Type (2016-2021)
4.2.1. Narrow-body aircraft
4.2.2. Wide-body aircraft
5. Global Low-Cost Airline Consumption by Operation (2016-2021)
5.1. Global Low-Cost Airline Price by Operation (2016-2021)
5.2. Global Low-Cost Airline Revenue Market Share by Operation (2016-2021)
5.2.1. International
5.2.2. Domestic
6. Global Low-Cost Airline Consumption by Distribution Channel (2016-2021)
6.1. Global Low-Cost Airline Price by Distribution Channel (2016-2021)
6.2. Global Low-Cost Airline Revenue Market Share by Distribution Channel (2016-2021)
6.2.1. Online
6.2.2. Travel Agency
6.2.3. Others
7. Key Companies Profiled
7.1. WestJet Airlines Ltd
7.1.1. WestJet Airlines Ltd Low-Cost Airline Corporation Information
7.1.2. WestJet Airlines Ltd Low-Cost Airline Product Portfolio
7.1.3. WestJet Airlines Ltd Low-Cost Airline Consumption, Price and Gross Margin (2016-2021)
7.1.4. WestJet Airlines Ltd Main Business and Markets Served
7.1.5. WestJet Airlines Ltd Recent Developments/Updates
7.2. Spirit Airlines, Inc.
7.3. SpiceJet Limited
7.4. Southwest Airlines Co.
7.5. Ryanair Holdings plc
7.6. Qantas Airways Limited (Jetstar Airways Pty Ltd.)
7.7. Norwegian Air Shuttle ASA
7.8. NewWorldAir Holdings, Inc.(Indigo, LLC)
7.9. IndiGo
7.10. easyJet plc
7.11. Azul S.A. (Azul Linhas Aéreas Brasileiras S.A.)
7.12. Alaska Air Group, Inc. (Virgin America Inc.)
7.13. AirAsia Berhad
7.14. Air Arabia PJSC
7.15. Go First
8. Marketing Channel, Distributors and Customers
8.1. Marketing Channel
8.2. Low-Cost Airline Distributors List
8.3. Low-Cost Airline Customers
9. Market Dynamics
9.1. Low-Cost Airline Industry Trends
9.2. Low-Cost Airline Growth Drivers
9.3. Low-Cost Airline Market Challenges
9.4. Low-Cost Airline Market Restraints
10. Global Low-Cost Airline Consumption and Demand Forecast, by Region (2022-2027)
10.1. Global Forecasted Demand Analysis of Low-Cost Airline, by Regions and Country
10.1.1. North America Forecasted Consumption of Low-Cost Airline by Country
10.1.2. Europe Market Forecasted Consumption of Low-Cost Airline by Country
10.1.3. Asia Pacific Market Forecasted Consumption of Low-Cost Airline by Region
10.1.4. Latin America Forecasted Consumption of Low-Cost Airline by Country
10.1.5. Middle East and Africa Forecasted Consumption of Low-Cost Airline by Country
11. Research Finding and Conclusion
12. Methodology and Data Source
12.1. Methodology/Research Approach
12.1.1. Research Programs/Aircraft Type
12.1.2. Market Size Estimation
12.1.3. Market Breakdown and Data Triangulation
12.2. Data Source
12.2.1. Secondary Sources
12.2.2. Primary Sources
12.3. Author List
12.4. Disclaimer
Research Methodology
Our research studies are primarily performed in five phases which include Secondary Research, Primary Research, Subject Matter Expert Advice, Quality Check, and Final Review. The process opted for conducting thorough research to make authentic business reports is briefly described below-
Secondary Research-
- Based on the understanding of requirements, we conducted secondary research to identify the Segment specifications, qualitative and quantitative data along with the factors responsible for the growth of the market.
- The secondary sources referred for the study include press releases, company annual reports, and research papers related to the industry.
- Various sources such as industry magazines, trade journals, government websites, and associations were also reviewed for gathering precise analysis on opportunities for business expansions in the market.
- Moreover, quantitative as well as qualitative data were also extracted from paid databases, which included Reuters, Factiva, Bloomberg, One Source, and Hoovers, which proved to be useful for in-depth technical study of the market.
Primary Research-
- The research carried out during the desk research was verified by primary interviews. Primary research was scheduled with a number of industry experts for conducting telephonic interviews, and also our team send questionnaires through their official emails.
- The secondary data collected was then verified by various industry participants which included Segment managers, marketing managers, VPs, CEOs, purchasing managers, subject matter experts.
- An interview with the mentioned participants aids invalidation of our research findings regarding the Segment.
- It helps in the provision of first-hand data on factors such as market size, growth, regional trends, market trends, and competition in the industry. This approach makes our findings precise in order to help our clients in strategic decision-making processes.
Subject Matter Advice-
- The secondary and primary research key findings were then validated by the in-house subject matter experts having extensive experience in the market research industry.
- Specific requirements of the clients were reviewed by the experts to check for completion of the market study. Experts help in channelizing the representation skills of the analyst in terms of providing data that can be easily understood by our customers.
Quality Check-
- The analysis done by the research team was further reviewed to check for data accuracy provided to suit the clients’ specific requirements.
- This revision was done in various phases to check the data authenticity and to remove negligible errors in the final compilation.
Final Review-
- After the quality check, a final review of the report was done to look after the presentation, formatting, and to recheck if all the requirements of the clients were addressed. The next phase remains dispatch of the report to the client.
Enquire Before Purchase
Frequently Asked Questions
Why Choose Market Research Strategy?
We utilize market analysis/information from verified authenticated data sources to scoop accurate research reports
We understand the urgency of our clients and their clients' in the competitive space thus, deliver the report in minimum turnaround
Without further ado, choose us and get instant access to reliable analysis to help you make the right business decisions.
We abide by the information security policy and adheres to keep your private and business information confidential and secure.