Global Low-Cost Airline Market
Key Trends:
- Low cost airlines are recovering to 2019 -levels faster: Despite the pandemic -led travel restrictions still being present to an extent in 2021, the global low-cost airlines sector performed well. The rapid regaining of momentum in domestic travel helped the low cost airlines perform comparatively well in 2021 and 2022. As LCCs mainly focus on leisure tourists and travelers visiting friends and relatives (VFR), and as the demand from these segments recovered faster than the business travelers, the low costs irlines welcomed more travelers in 2021 -2022 and is likely to follow the trend in the years ahead.
- Touchless customer experiences to stay: One of the major impacts the pandemic had on the airline industry was the increased influence of technology. When COVID -19 emerged globally in 2020, sanitation and hygiene became a top priority for travelers. As a result, businesses related to travel and tourism sectors started to integrate technological solutions into their customer experience. For instance, the use of automated check -in, biometric facial recognition, digitized bag-tracking, and electronic boarding information has become widespread. With more and more people starting to prioritize safety and hygiene while traveling, the utilization of contact -less technologies are likely to stay.
- Sustainability and increased flexibility for customers: With sustainability becoming a major concern, airlines are moving towards improving aircraft sustainability by ways such as reducing carbon emission, usage of sustainable aviation fuel, and employing carbon capture technologies. IATA (International Air Transport Association) members have made a pledge to achieve net -zero carbon emissions by the end of 2050. With the increase in last -minute bookings and the uncertainty around international travel, airlines are now providing more flexibility to their customers in terms of cancellations and change in trips. Many have eliminated the charges associated with cancellations and changes too.
Global Low-cost Airline Company Profile
Southwest Airlines Co.
Southwest Airlines Co. (Southwest Airlines or 'the company') is a passenger airline that provides scheduled passenger and freight transportation services. The company primarily provides point-to-point, low-fare services throughout the US and near-international markets.
The company is a low-fare passenger airline that provides scheduled air transportation in the US and near-international markets. The company also specializes in the provision of air freight services.
JetBlue Airways Corporation
JetBlue Airways Corporation (JetBlue or 'the company') is a low-cost passenger airline that provides customer service primarily on point-to-point routes. The company primarily operates in the US. It is based in Long Island City, New York.