Average ticket price of low cost carriers in the U.S. 2020
Amongst low-cost airlines in the United States there is considerable difference in average ticket prices: on one extreme is Spirit, with an average domestic ticket price of 98 U.S. dollars, while on the other extreme is JetBlue, whose average domestic ticket price stood at 191 U.S. dollars in the 12 months ending December 31, 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.
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.
