Global Low Cost Airline Market by Product Type (Domestic, International), By Application (Leisure Travel, Business Travel, Others), By Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2019–2028
- Published date: April 2023
- Report ID: 27577
- Number of Pages: 347
- Format:
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Market.us announces the publication of its most recently generated research report titled, “Global Low Cost Airline Market by Product Type (Domestic, International), By Application (Leisure Travel, Business Travel, Others), and by Region – Global Forecast to 2028”. 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$ 197760.0 Mn in 2018 to reach US$ 458728.6 Mn by 2028 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 1970’s, 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.
trending_up Total Revenue in 2018$ 197760.0 Mn
trending_up Market CAGR of the Next Ten Years8.80%
no_encryption Market Value (US$ Mn), Share (%) and Growth Rate (%) Comparison 2012-2028Purchase this report or a membership to unlock the market value (US$ Mn), share (%) and growth rate (%) comparison for this industry.- By Type
- By Region
- By Application
no_encryption Leading Companies Financial HighlightsPurchase this report or a membership to unlock the leading companies financial highlights for this industry.trending_up Market Revenue of the Next Ten Years$ 458728.6 Mn
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), 2018–2028
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 Aéreas Inteligentes S.A., SpiceJet Limited, Dubai Aviation Corporation, JetBlue Airways Corporation, Air Arabia PJSC, Southwest Airlines Co. etc.
Key Market Segments:
Type
- Domestic
- International
Application
- Leisure Travel
- Business Travel and Others
Key Market Players included in the report:
- 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 Aéreas Inteligentes S.A.
- SpiceJet Limited
- Dubai Aviation Corporation
- JetBlue Airways Corporation
- Air Arabia PJSC
- Southwest Airlines Co.
For the Low Cost Airlines Market research study, the following years have been considered to estimate the market size:
Attribute Report Details Historical Years
2016-2020
Base Year
2021
Estimated Year
2022
Short Term Projection Year
2028
Projected Year
2023
Long Term Projection Year
2032
Report Coverage
Competitive Landscape, Revenue analysis, Company Share Analysis, Manufacturers Analysis, Volume by Manufacturers, Key Segments, Key company analysis, Market Trends, Distribution Channel, Market Dynamics, COVID-19 Impact Analysis, strategy for existing players to grab maximum market share, and more.
Regional Scope
North America, Europe, Asia-Pacific, South America, Middle East & Africa
Country Scope
United States, Canada and Mexico, Germany, France, UK, Russia and Italy, China, Japan, Korea, India and Southeast Asia, Brazil, Argentina, Colombia etc.Saudi Arabia, UAE, Egypt, Nigeria and South Africa
- 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
- Nestlé S.A Company Profile
- Go Airlines (India) Ltd.
- GOL Linhas Aéreas Inteligentes S.A.
- SpiceJet Limited
- Dubai Aviation Corporation
- JetBlue Airways Corporation
- Air Arabia PJSC
- Southwest Airlines Co.
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