세계의 저가항공사 시장 규모는 2023년 2,056억 달러에 달했습니다. 향후 IMARC Group은 시장이 2032년까지 4,051억 달러에 이를 전망이며, 예측 기간 동안 7.7%의 복합 연간 성장률(CAGR)을 나타낼 것으로 예측했습니다. 국내 여행 및 관광 증가, 티켓리스 여행 보급, 인터넷 보급 확대, 신흥국 시장에서 소비자의 가처분 소득 증가가 시장을 뒷받침하는 주요 요인의 일부입니다.
노프릴 캐리어로도 알려진 저가 항공사는 기존의 풀서비스 에어라인에 비해 상당히 저렴한 운임으로 항공 여행을 제공하는 항공사입니다. 일반적으로 비용 효율성에 중점을 두고 운영되며 필요한 최소 서비스를 제공하며 위탁 수하물, 기내식, 좌석 지정 등의 편의 시설에 추가 요금을 부과합니다. 가격에 민감한 여행자를 대상으로 하는 경우가 많고, 저렴한 항공권을 제공함으로써 많은 여객을 유치하는 것을 목적으로 하고 있습니다. 간소화된 운임체계, 2차 공항에서의 운항, 단일 기종의 이용, 항공기의 최대 이용률 등의 수단에 의해 비용 절감을 실현하고 있습니다. 그 결과, 저가 항공사의 비즈니스 모델은 항공 여행을 보다 폭넓은 소비자가 이용하기 쉬워, 항공 업계에 혁명을 가져왔습니다.
가격에 민감한 소비자들 사이에서 저렴한 항공 여행에 대한 수요가 증가하고 있다는 것은 예측 기간 동안 시장 성장을 자극하는 것으로 예상됩니다. 저가항공사는 추가 편의 시설 및 서비스보다 비용 절감을 선호하는 여행자의 대부분을 수용합니다. 게다가 각국 항공업계의 규제완화로 신규 진출 기회가 생겨 경쟁이 증가하고 있습니다. 이에 따라 기존 항공사를 대체하는 유력한 옵션으로서 저가항공사가 대두해, 그 우위성에 과제하고, 소비자에게 보다 많은 선택지를 제공하고 있는 것은 시장의 성장에 플러스의 영향을 줍니다. 이와는 별도로, 온라인 예약 플랫폼의 보급과 저렴한 항공권의 유통과 판매 촉진을 용이하게 하는 디지털 마케팅의 대두가, 소비자의 운임에의 액세스와 비교를 용이하게 해, 시장 성장의 기폭제가 되어 있습니다. 또한 혼잡이 적고 운영비가 낮은 2차 공항의 급속한 확대가 저가항공사에 노선 개척 옵션을 늘리고 비용 절감을 가져오는 것도 시장 성장에 기여하고 있습니다.
비용 의식이 높은 소비자 증가
비용 의식이 높은 소비자 수요 증가는 시장의 주요 촉진요인입니다. 많은 여행자, 특히 레저 여행자와 유연한 여행 계획을 가진 여행자는 추가 서비스 및 편의 시설보다 저렴한 가격을 선호합니다. 이러한 항공사는 기존 항공사보다 저렴한 운임을 제공함으로써 이러한 수요에 부응하고 있습니다. 이 항공사는 위탁 수하물, 기내식, 좌석 지정 등의 서비스에 대해 추가 요금을 징수하는 무수수료 방식을 채택하고 있습니다. 비용 효율성을 중시하고 경쟁 운임을 제공함으로써 다른 교통 수단을 선택하거나 여행을 완벽하게 보류 할 수있는 가격에 민감한 여행자의 중요한 계층을 끌어들입니다. 저가항공사가 시장에서 강한 존재감을 보여주는 단거리 노선에서는 저렴한 가격이 특히 매력적입니다.
항공 산업의 자유화 진전
많은 국가에서 항공 산업의 규제 완화와 자유화는 새로운 진입 기회를 창출하고 시장 경쟁을 격화시키고 시장 성장을 이끌고 있습니다. 규제 완화 정책은 노선, 가격, 시장 진입에 관한 규제를 완화하여 저가항공사 시장 진입과 유연한 운항을 가능하게 했습니다. 이로 인해 기존 항공사의 독점이 무너지고 경쟁이 도입되어 운임이 낮아져 소비자 선택이 늘어났습니다. 시장의 자유화는 저가항공사가 차별화를 도모하고 고객을 끌어들이려고 노력함으로써 기술 혁신과 효율화를 촉진합니다. 경쟁이 심화됨에 따라 기존 항공사는 저가 항공 자회사를 도입하거나 저가 항공사의 비즈니스 모델 요소를 통합함으로써 적응을 강요합니다.
기술진보 급증
항공기 설계 및 운항 기술의 발전은 시장 성장에 긍정적인 영향을 미칩니다. 최신 항공기는 연료 효율이 높고 항공사의 운항 비용을 줄일 수 있습니다. 이를 통해 저가항공사는 수익성을 유지하면서 경쟁 운임을 제공할 수 있습니다. 고급 네비게이션 시스템과 운항 관리 기술은 운항 효율을 높이고, 경로를 최적화하고, 연료 소비를 줄입니다. 게다가 기술의 진보는 예약,판매 프로세스를 일변시켰습니다. 온라인 플랫폼 및 모바일 애플리케이션은 항공권 발권 프로세스를 간소화하고 여행자는 쉽게 항공편을 검색, 비교 및 예약할 수 있습니다. 이 접근성을 통해 저가 항공사의 고객 기반을 확대하여 전 세계의 배포를 용이하게 했습니다. 또한 온라인 체크인 시스템에서 기내 엔터테인먼트 옵션에 이르기까지 종합적인 고객 경험을 향상시키는 기술은 필수적이며 제공하는 서비스의 가치를 더욱 향상시킵니다.
The global low cost airlines market size reached US$ 205.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 405.1 Billion by 2032, exhibiting growth rate (CAGR) of 7.7% during 2024-2032. The rising domestic travel and tourism, widespread adoption of ticketless travel, the growing internet penetration, and inflating consumer disposable income in developing nations are some of the major factors propelling the market.
Low cost airlines, also known as budget airlines or no-frills carriers, are airlines that offer air travel at significantly lower fares compared to traditional full-service airlines. They usually operate with a focus on cost efficiency, offering stripped-down services and charging additional fees for amenities such as checked baggage, in-flight meals, and seat selection. They often target price-sensitive travelers and aim to attract a large volume of passengers by providing affordable air travel options. They achieve cost savings through measures such as simplified fare structures, operating from secondary airports, utilizing a single aircraft type, and maximizing aircraft utilization. As a result, the business model of low cost airlines has revolutionized the airline industry by making air travel more accessible to a wider range of consumers.
The increasing demand for affordable air travel among price-sensitive consumers will stimulate the growth of the market during the forecast period. Low cost airlines cater to a large segment of travelers who prioritize cost savings over additional amenities and services. Moreover, the deregulation of the aviation industry in various countries has created opportunities for new entrants and increased competition. In line with this, the emergence of low cost airlines as viable alternatives to traditional carriers, challenging their dominance and offering consumers more choices, is positively influencing the market growth. Apart from this, the proliferation of online booking platforms and the rise of digital marketing that facilitates the distribution and promotion of low cost airline tickets, making it easier for consumers to access and compare fares, has catalyzed market growth. Furthermore, the rapid expansion of secondary airports, which are often less congested and have lower operating costs, providing low cost airlines with more options for route development and cost savings is contributing to the market growth.
Rise in cost-conscious consumers
The increasing demand from cost-conscious consumers is a key driver for the global market. Many travelers, particularly leisure travelers and those with flexible travel plans prioritize affordability over additional services and amenities. These airlines cater to this demand by offering lower fares compared to traditional carriers. These airlines adopt a no-frills approach, charging extra for services like checked baggage, in-flight meals, and seat selection. By focusing on cost efficiency and offering competitive fares, they attract a significant segment of price-sensitive travelers who may otherwise choose alternative modes of transportation or forgo travel altogether. The affordability factor is particularly appealing for short-haul flights, where low-cost carriers have established a strong market presence.
Increase in liberalization of the aviation industry
The deregulation and liberalization of the aviation industry in many countries have created opportunities for new entrants and increased competition, driving the market growth. Deregulation policies have relaxed restrictions on routes, pricing, and market entry, allowing low-cost carriers to enter the market and operate with more flexibility. This has broken the monopoly of traditional carriers and introduced competition, leading to reduced fares and increased choices for consumers. Market liberalization promotes innovation and efficiency as low cost airlines strive to differentiate themselves and attract customers. The increased competition has forced traditional carriers to adapt by introducing their low-cost subsidiaries or adopting elements of the low-cost business model.
Surge in technological advancements
Technological advancements in aircraft design and operations have positively influenced the growth of the market. Modern aircraft are more fuel-efficient, leading to reduced operating costs for airlines. This allows low-cost carriers to offer competitive fares while maintaining profitability. Advanced navigation systems and flight management technologies also improve operational efficiency, optimizing routes and reducing fuel consumption. Furthermore, technological advancements have transformed the booking and distribution process. Online platforms and mobile applications have simplified the ticketing process, allowing travelers to search for, compare, and book flights with ease. This accessibility has expanded the customer base for low cost airlines and facilitated their global reach. Additionally, technology is vital in enhancing the overall customer experience, from online check-in systems to onboard entertainment options, further adding value to the offerings.
IMARC Group provides an analysis of the key trends in each segment of the global low cost airlines market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on purpose, distribution channel and destination.
Leisure Travel
VFR
Business Travel
Others
Leisure travel dominates the market
The report has provided a detailed breakup and analysis of the market based on the purpose. This includes leisure travel, VFR, business travel, and others. According to the report, leisure travel represented the largest segment.
Leisure travel refers to travel activities undertaken for recreational or personal purposes, such as vacations, holidays, sightseeing, visiting friends or relatives, or engaging in leisure activities. It is a significant segment of the travel industry and plays a crucial role in fueling the demand. The dominance of leisure travel as a purpose segment can be attributed to its affordability as cost-conscious leisure travelers seek affordable travel options, and low cost airlines cater to this demand by offering competitive fares.
Moreover, leisure travelers often have more flexibility in terms of travel dates and destinations compared to business travelers. This flexibility aligns well with the low cost airline model, which typically operates on multiple routes and offers frequent flights to popular leisure destinations, thereby propelling the segment growth. Furthermore, the prevalence of short-haul destinations is also contributing to the expansion of the market.
Online
Travel Agency
Others
A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes online, travel agency, and others.
The online distribution channel has revolutionized the way travel products and services are marketed and sold. It encompasses various platforms such as airline websites, online travel agencies (OTAs), and metasearch engines. It offers various options, customer reviews, and personalized recommendations. Travel agencies act as intermediaries between travelers and airlines, assisting with travel planning and bookings and providing expert advice. They have established relationships with airlines and access to negotiated fares, package deals, and exclusive offers. They offer expertise and destination knowledge and can customize travel itineraries according to individual preferences.
Apart from online and travel agency channels, other distribution channels contribute to airline ticket sales. These include direct sales at airport counters, call centers, corporate travel departments, and consolidators.
Domestic
International
Domestic holds the largest market share
The report has provided a detailed breakup and analysis of the market based on the destination. This includes domestic and international. According to the report, domestic represented the largest segment.
A domestic destination refers to a location within the same country where travelers undertake their trips, whether for leisure or business purposes. Domestic travel is often more cost-effective compared to international travel, as it eliminates expenses such as visas, long-haul flights, and currency exchange. In addition, the surging adoption of low cost airlines that caters to price-sensitive travelers by offering competitive fares for domestic routes, making air travel an accessible and affordable option for domestic trips is positively influencing the segment growth.
Moreover, low cost airlines usually operate on multiple domestic routes and connect to secondary airports, providing travelers with a wide range of options and greater flexibility in terms of departure and arrival locations, thereby accelerating the product adoption rate. Furthermore, the rising diversity of landscapes, historical sites, natural attractions, and vibrant cities in many countries has augmented the demand.
North America
United States
Canada
Asia-Pacific
China
Japan
India
South Korea
Australia
Indonesia
Others
Europe
Germany
France
United Kingdom
Italy
Spain
Russia
Others
Latin America
Brazil
Mexico
Others
Middle East and Africa
Europe exhibits a clear dominance in the market
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe was the largest market.
Europe held the largest market share since the region boasts a dense network of airports, making it easier for low-cost carriers to establish extensive route networks and offer convenient connections. This accessibility has allowed budget airlines to penetrate various European markets, attracting a large customer base. Moreover, significant deregulation and liberalization in the aviation industry of Europe, enabling low-cost carriers to operate more freely and competitively, is propelling market growth in the region.
Additionally, the expanding geographic proximity of Europe to popular tourist destinations has accelerated the adoption of low cost airlines as it offers convenient and affordable travel options for both leisure and business travelers. Moreover, rapid growth in the Europe tourism industry and the presence of major tourist attractions have attracted a steady influx of visitors, thereby driving the demand for low-cost air travel.
The market is experiencing a lower-than-anticipated demand compared to pre-pandemic levels; however, this is likely to witness a paradigm shift over the next decade, with companies in the market continuously implementing strategies to maintain their competitiveness and attract more customers. Key players are focusing on cost efficiency by adopting various measures, such as operating a single aircraft type, minimizing turnaround times, and optimizing fuel consumption. They are also leveraging digital marketing strategies to reach a broader customer base and promote special offers and discounts. Furthermore, many low-cost carriers are focusing on route expansion, continuously adding new destinations and increasing frequency on popular routes to attract a wider range of travelers. They are also striving to maintain high operational reliability and punctuality to build customer trust and loyalty. We expect the market to witness new entrants, consolidation of portfolio, and increased collaborations to drive healthy competition within the domain.
Air Arabia PJSC
Alaska Airlines Inc.
Capital A Berhad (Tune Group Sdn Bhd)
EasyJet plc
Go Airlines (Wadia Group)
IndiGo
Jetstar Airways Pty Ltd (Qantas Airways Limited)
Norwegian Air Shuttle ASA
Ryanair Holdings PLC
Southwest Airlines Co.
SpiceJet Limited
Spirit Airlines Inc.
WestJet Airlines Ltd.
In December 2022, Indigo Airlines announced the launch of 32 new connecting flights between India and Europe, aimed at strengthening international connectivity. These flights will operate to Milan, Manchester, Birmingham, Rome, and Venice, in a codeshare partnership with Turkish Airlines.
In June 2023, WestJet Airlines Ltd. inaugurates service between Saskatoon and Minneapolis. With the inclusion of Minneapolis to Saskatoon's network, WestJet has increased transborder capacity in and out of the City of Bridges by 20 per cent during the summer. By introducing this direct flight connection, WestJet aimed to enhance travel options and connectivity for passengers traveling between Saskatoon and Minneapolis.
In June 2023, Spirit Airlines Inc. launches its new, nonstop service from its seventh California airport, San Jose Mineta International Airport (SJC). The launch introduces affordable travel options for San Jose travelers, including two daily flights to Las Vegas (LAS) and daily flights to Dallas-Fort Worth (DFW) and San Diego (SAN). It also provides an easy gateway for visitors to fly to the Southern Bay Area.