Are low-cost airlines ending?
According to an article in Hosteltur the era of low-cost airlines could be ending directly due to the rise in fuel prices and the impossibility of increasing rates (because they would no longer be low-cost), so they estimate that some will disappear or declare bankruptcy :
This will be their future, unless they introduce changes in that business pattern, especially in their commercial policy and in some cases in operational aspects more typical of network companies, thereby blurring the model, which is another way of disappearing. (…) The low cost, with a reduced cost structure in which the fuel has a much greater weight, are fatally beaten and have no reaction capacity.
It is clear that the prices of the routes of low-cost calls, especially in Europe where there is really a target market and tough competition, continue to rise while the service, attention and benefits are maintained austere. They would have to find a new way to generate money, although it is not clear how.
Link: The low cost era is over | Photo: RAAS