The Opportunity for Long-Haul, Low-Cost Airlines
Airlines
The Opportunity for Long-Haul, Low-Cost Airlines
Skift Take
Despite the setbacks faced by many low-cost carriers (LCCs) around the world in their long-haul operations, LCCs in the United States and Asia have been steadily increasing their capacity on long-haul routes. So far, the results have been positive. With the availability of better aircrafts, a growing middle class and the evolving travel preferences of young travellers, there could be a billion-dollar opportunity waiting for LCCs.
Report Overview
In this second edition of the Long Haul Low-Cost Series, we explore why there’s a real opportunity for low-cost airlines to foray into long-haul operations profitably. Our analysis includes the financial performance of low-cost airlines in the U.S. that have recently started operations over the Atlantic. We also include an analysis of whether the low-cost advantage of LCCs is big enough to overcome legacy airlines' advantage as they operate a multi-cabin configuration on their aircraft. Does the cost advantage offset the premium cabin advantage that legacy airlines have?
What You'll Learn From This Report
- Analysis of JetBlue’s flights over the Atlantic
- Can premium cabin revenues offset LCC’s low-cost advantage?
- Markets that long-haul low-cost businesses can target
- Global Opportunities and Impact on Network Carriers
