Average ticket price of low cost carriers in the U.S. 2020
Ultra-low-cost carriers
Variance in ticket prices between low-cost carriers has led some analysts to talk of a new industry segment – ultra-low-cost carriers (ULCC). ULCCs differ in that their business model is aimed at finding untapped locations to create extremely cheap flights. This business model creates new demand through courting consumers who do not normally fly, rather than structuring services according to existing demand. The ULCC model has proved to be successful, with ULCCs such as Allegiant and Frontier recording strong growth in operating revenue over recent years, as has the overall ULCC segment.
Low cost carriers
More broadly, the low-cost carrier segment has been consistently expanding its share of the American airline market over the last decade. This trend extends beyond America, with low cost carriers dominating the global list of airlines which launched the newest routes in 2018. The U.S. ULCCs Allegiant, Frontier and Spirit all featured in the top 20 of this list.