A travel expert explains why low-cost carriers and their cheap flights aren’t going anywhere yet.
If you ’ve been keeping up with air hose industry word lately , you already are well aware that the length of service ofbudget airlinesseems to be up in the air . The most large example is thestruggling Spirit Airlines . One of the most well - know depressed - price bearer , Spirit was in the process of being purchased by JetBlue when a court ruling blocked the merger last week . The determination was done with the consumer in creative thinker , as the justice prevail thatJetBlue purchasing Spiritwould reduce contention between airline business and increase prices — a classic example of antimonopoly usurpation , for those of you who have n’t brush up on 11th grade chronicle for a minute ( me ) .
But now that the sale has been blocked — at least for now , since JetBlue has already launched an appeal of the conclusion — Spirit ’s fate is unknown , as some industry experts posit the airline could face bankruptcy . Spirit is not alone in its financial struggle — other down - price carriers including Frontier and powerhouse Southwest have reportedlower returnscompared to legacy newsboy like American , United , and Delta of late .
To get a common sense of what these airlines ' struggles could stand for for travelers , we asked Katy Nastro , Going ’s resident travel expert what we should be have a bun in the oven .
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Should budget and cost-conscious travelers be panicking about low-cost carriers disappearing?
Shorter suffice : no .
" Budget airlines are not immune to financial severeness , but that also does n’t think of they will automatically disappear , " Nastro told Thrillist . For one , the presence of budget airlines are substantive for celebrate fares competitory , and have continued to grow .
" For example , in 2016 according to two analysts Kasper and Lee , if Southwest flew on a road , it helped lower fare by over 20 % , " Nastro explained . " In 2023 , low - toll carriers made up 14 % of the domestic market portion , up from 2 % over two decades ago . "
From Nastro ’s explanation and the reasoning behind the judge ’s antitrust ruling , it would sure as shooting benefit larger legacy airlines if budget airline were to go the manner of the dodo , but that ’s not really what this tardy industry news program is indicating .
What would happen if budget airlines did disappear?
The encroachment of a mass budget airline defunctness would likely vary wide depending on which routes and destinations are involved .
" If low - cost carriers were to disappear , the effects most likely would be felt in area where their step was the magnanimous , " Nastro say . " For instance , Las Vegas is one of the good aerodrome for cheap flights because it has so much variety in airline competition . Allegiant , Frontier , Southwest , and Spirit all fell there , along with others . If just these four were to vanish , the likelihood of Vegas understand fewer deals is high , due to decrease competition . Conversely , if we looked at John F. Kennedy in New York , Allegiant and Frontier disappearance would n’t necessarily have a fully grown impact since they do n’t fly there . "
So we could expect to see a big jumping in prices on certain routes , but on itinerary where there ’s already not much presence from budget airlines , price likely would n’t change dramatically . That makes mother wit , and definitely makes the case that having multiple airlines serving one drome as a positive for the consumer .
Thatdoesn’tmean that budget airway will always be the cheapest option , it should be noted . " Sometimes overall prices on budget airline are n’t as humble as the other carriers . They may charge a lower base menu , but their ancillaries ( fees like rear end selection , bags , etc . ) are where they make money , ” Nastro pronounce . So even if the presence of a budget airline is bringing down prices , those carriers might not always offer the low prices for a ease up route .
Why are budget airlines struggling if everyone wants cheap flights?
There are plenty of reasons for budget airlines not having as much achiever as their legacy rival correctly now . Nastro says that one contributing cistron is that competitors have more connectivity than small-scale airlines . For example , none of the radical low - cost airlines declare oneself escape across the Atlantic — so consumer seeking out trip to Europe are going to stag elsewhere for those trajectory .
" People ’s travel tastes have shift from the middle of the pandemic when a lot of us only felt well-to-do flying domestically , " Nastro explicate .
Plus , the selective information we ’re seeing now is mostly found on one fourth of financial reports . " It ’s also not uncommon for airlines to account Q4 going which often reflect ticket booked for further out travel , " Nastro said . " January and February are slower months for traveling overall , which does n’t help oneself any airline business ’s bottom telephone line . "
