Low-Cost Carrier (LCC) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 255.11 Billion |
| Market Size (2029) | USD 542.05 Billion |
| CAGR (2024 - 2029) | 16.27 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Low-Cost Carrier (LCC) Market Analysis
The Low-Cost Carrier Market size is estimated at USD 255.11 billion in 2024, and is expected to reach USD 542.05 billion by 2029, growing at a CAGR of 16.27% during the forecast period (2024-2029).
Post-COVID-19, low-cost carriers (LCCs) spearheaded the airline sector's rebound. Their agility and cost-efficiency allowed them to swiftly cater to the surge in demand following the relaxation of travel restrictions. With the growing number of travelers prioritizing affordability over luxury, LCCs are poised for significant growth in the coming years.
Global low-cost airlines witnessed a remarkable surge in recent years, propelled by heightened economic activities, streamlined travel, a booming tourism sector, rapid urbanization, evolving lifestyles, and a clear consumer preference for budget-friendly, direct, and frequent services. Airlines are intensifying efforts to enhance aircraft sustainability in response to escalating sustainability concerns. This includes curbing carbon emissions, adopting sustainable aviation fuels, and exploring carbon capture technologies.
Budget airlines are strategically positioning themselves to capitalize on evolving travel trends and tap into previously overlooked markets by focusing on point-to-point air routes and extending services to underserved or secondary airports.
Low-Cost Carrier (LCC) Market Trends
The Narrowbody Aircraft Type is Expected to Witness Significant Growth During the Forecast Period
Narrowbody aircraft, favored by low-cost carriers globally, boasts advanced capabilities, low operating costs, and exceptional fuel efficiency, particularly on short-haul routes. The Airbus A321, renowned for its efficiency, is set to maintain its market dominance. This is bolstered by notable cost reductions of 10% in its classic models and 20% in the Neo variants. Given the success of the low-cost carrier business model and the inherent advantages of newer-generation narrowbody aircraft, there is a surging demand for these advanced models. Advancements in technology are extending the range of these aircraft, allowing them to cover longer distances. Among the popular choices are the Boeing B737 and the Airbus A320.
In February 2023, Air India inked a substantial deal with Airbus, which included orders for 140 A321neo and 70 A320neo aircraft. Additionally, the order included 40 widebody A350s, with a mix of six A350-900s and 34 A350-1000s. Complementing this, Air India's order with Boeing comprised 190 Boeing 737MAX narrowbody planes, 20 Boeing 787 Dreamliners, and 10 Boeing 777X aircraft. These strategic moves underscore the future growth trajectory of the narrowbody aircraft segment.
The Asia-Pacific Region is Expected to Witness Significant Growth During the Forecast Period
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period owing to significant shifts in the air travel market over the past few decades. Governmental changes, policy modifications, economic growth, and rising incomes have collectively fueled the region's air travel expansion. Notably, the rise of low-cost carriers has been pivotal, democratizing air travel by offering more affordable fares, thus broadening their customer base.
Rising air passenger traffic, expanding aviation operations, and adopting newer, more advanced aircraft underscores the trajectory of low-cost carriers in the region. Bolstered by the ASEAN Open Sky agreements, low-cost carriers in Asia-Pacific have seen remarkable growth. With a sizable population boasting sufficient disposable income for air travel, well-managed low-cost airlines are poised for significant success. Projections from Aviation Business News suggest that the Asia-Pacific region will command around 40% of future airliner production.
In May 2023, Malaysia's MYAirline inked an auxiliary power supply (APU) maintenance deal with Honeywell for its fleet of 22 Airbus A320s. By leveraging annual maintenance cost forecasts and predictive trend tracking, Honeywell aims to help MYAirline curb flight delays and cancellations. MYAirline's strides were recognized industry-wide, securing top votes from industry players, consumers, media, and travel professionals. Such collaborations and advancements are set to propel the Asia-Pacific LCC market鈥檚 growth in the coming years.
Low-Cost Carrier (LCC) Industry Overview
Key players in the low-cost carrier market operate in a moderately fragmented landscape. Some of the key players in the market are InterGlobe Aviation Limited (Indigo), Southwest Airlines Co., SpiceJet Ltd, Spirit Airlines Inc., and Easy Jet PLC. This market has a mix of domestic, regional, and global players, each vying for a larger share. These players have strategically expanded into different regions, enhancing their service reach. As global aviation operations expand, players increasingly form partnerships and alliances to stay competitive and meet evolving customer demands.
Low-Cost Carrier (LCC) Market Leaders
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Southwest Airlines Co
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Spicejet Ltd
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Easy Jet Plc
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InterGlobe Aviation Limited (Indigo)
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Spirit Airlines, Inc.
*Disclaimer: Major Players sorted in no particular order
Low-Cost Carrier (LCC) Market News
April 2024: Air Arabia, an airline in the Middle East and North Africa, launched a 'super seat sale,' offering discounts on 150,000 seats across its flight network. The promotion covered direct flights from multiple Indian cities to three UAE airports, including Sharjah, Abu Dhabi, and Ras Al Khaimah.
January 2023: Indigo bolstered its fleet to 300 aircraft, positioning itself to cater to rising travel needs, both domestically and internationally.
Low Cost Carrier (LCC) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Aircraft Type
5.1.1 Narrow Body
5.1.2 Wide Body Aircraft
5.2 Destination
5.2.1 Domestic
5.2.2 International
5.3 Distribution Channel
5.3.1 Online
5.3.2 Travel Agency
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Russia
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Latin America
5.4.4.1 Brazil
5.4.4.2 Rest of Latin America
5.4.5 Middle East and Africa
5.4.5.1 Saudi Arabia
5.4.5.2 United Arab Emirates
5.4.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profile
6.2.1 Air Arabia PJSC
6.2.2 AirAsia Group Berhad
6.2.3 Alaska Air Group Inc.
6.2.4 InterGlobe Aviation Limited (Indigo)
6.2.5 Azul SA
6.2.6 Easy Jet PLC
6.2.7 JetBlue Airways Corporation
6.2.8 Norweigan Air Shuttle
6.2.9 Ryan Air
6.2.10 Southwest Airlines Co.
6.2.11 Spicejet Ltd
6.2.12 Spirit Airlines Inc.
6.2.13 Westjet Airlines Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Low-Cost Carrier (LCC) Industry Segmentation
In contrast to traditional airlines, low-cost carriers prioritize lower fares over added comforts. By forgoing some standard services, they maintain a leaner operational cost structure. While ticket prices are notably reduced, these carriers offset the difference by charging for additional services like food, priority boarding, and baggage.
The low-cost carrier (LCC) market is segmented by aircraft type, destination, distribution channel, and geography. By aircraft type, the market is segmented into narrowbody and widebody aircraft. By destination, it is divided into domestic and international. By distribution channel, it is classified into online and travel agencies. The report also covers the market sizes and forecasts for the LCC market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
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| Online | |
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Low Cost Carrier (LCC) Market Research FAQs
How big is the Low-Cost Carrier Market?
The Low-Cost Carrier Market size is expected to reach USD 255.11 billion in 2024 and grow at a CAGR of 16.27% to reach USD 542.05 billion by 2029.
What is the current Low-Cost Carrier Market size?
In 2024, the Low-Cost Carrier Market size is expected to reach USD 255.11 billion.
Who are the key players in Low-Cost Carrier Market?
Southwest Airlines Co, Spicejet Ltd, Easy Jet Plc, InterGlobe Aviation Limited (Indigo) and Spirit Airlines, Inc. are the major companies operating in the Low-Cost Carrier Market.
Which is the fastest growing region in Low-Cost Carrier Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Low-Cost Carrier Market?
In 2024, the North America accounts for the largest market share in Low-Cost Carrier Market.
What years does this Low-Cost Carrier Market cover, and what was the market size in 2023?
In 2023, the Low-Cost Carrier Market size was estimated at USD 213.60 billion. The report covers the Low-Cost Carrier Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Low-Cost Carrier Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
LCC Industry Report
Statistics for the 2024 LCC market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. LCC analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
