Global low-cost carrier market to reach $315b by 2028

Global air travel is on the rise after waves of pandemic-related disruptions in the last few years. Most airlines worldwide have completely recovered from the downturn and are looking ahead for further growth. Low-cost carriers play a major role in providing an efficient and economical way of travel for those who wish or need to. Globally, low-cost carriers have not only attracted leisure travelers but also made their mark in the business and vacation sectors. With the strong aviation recovery, particularly with the low-cost carriers, the global low-cost airline market will hit $189.1b in 2022. The number will only grow in the next five years, with an expected $315.4b low-cost market by 2028. Low-cost airlines, as the term suggests, are budget carriers that make affordable travel options possible for those who wish to choose one. These airlines offer fewer amenities while committing to safe travel between point A and point B. Such airlines rely on ancillary revenues by offering food for purchase onboard, selling carry-on baggage separately, early boarding fees, and seat selection fees. Low-cost carriers generally fly to secondary airports, where they enjoy cheaper airport fees compared to larger hub airports. Low-cost carriers are also known to operate only one or two aircraft types, thereby minimizing their operating cost. For example, the world’s largest low-cost carrier by fleet size, Southwest Airlines, operates a fleet of over 950 Boeing 737 family aircraft. Having a single type across its entire fleet minimizes operational costs such as training, flight operations, and maintenance.<br/>