Some of the major operators in this sector of the aviation industry, as four of the current top ten airlines now operate as LCCs. Today, LCCs produce around 33% of all scheduled airline seats a week and operate 30% of all scheduled flights, making them the fastest-growing sector in the industry in recent years.
A major part of the success of LCCs has been creating new demand through a combination of low fares, new routes, and appealing to a new generation of travelers. The rising disposable incomes, widespread use of digital technology, and adoption of credit cards among the new generation play a role in the low-cost business model. In that context, it is no surprise that emergent aviation markets such as India, Brazil, and Indonesia have a large share of their capacity in the hands of LCCs.
The aviation market is huge, by the end of 2024 there will be 5.9 billion seats and 36.7 million flights operated, providing today’s travelers with a choice of airlines, products, and scheduling options. LCCs may have been able to hang on to the “low-cost” tag but when you sum up the cost of the ancillaries compared to a legacy airline’s airfare, sometimes it’s a close call.
