Market Size of Low-Cost Carrier (LCC) Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 10.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Low Cost Carrier (LCC) Market Analysis
The low-cost carrier market is anticipated to register a CAGR of 10% during the forecast period
- The COVID-19 pandemic had a negative impact on the low-cost carrier market. The onset of the pandemic led to travel restrictions, with various countries worldwide imposing barriers or lockdowns to curb the spread of the virus. As a result, there was a decline in the number of aircraft operations worldwide, and low passenger traffic forced airline operators to ground their aircraft, impacting their revenues. Furthermore, there was a decrease in new aircraft acquisitions, leading to a decline in the production of new aircraft.
- However, with the decline in the pandemic situation, various countries are now easing travel restrictions and encouraging international travel. This has resulted in an increase in air passenger traffic, and low-cost airline companies are acquiring newer aircraft models with advanced features to cater to this growth. Additionally, the decline in the pandemic has led to the production of new aircraft models with advanced capabilities, which low-cost airline companies are acquiring to expand their fleets.
- Post-COVID recovery of the airline sector is expected to be led by LCCs. The operational responsiveness and cost-cutting measures implemented by LCCs had enabled them to address the sudden increase in demand when travel restrictions were eased. As more travelers prioritize affordability over luxury, LCCs are expected to witness growth during the forecast period.
- Low-cost airlines have grown exponentially worldwide over the past few years due to increased economic activities, ease of travel, development of the travel and tourism industry, rapid urbanization, changes in lifestyle, and consumers' preference for low-cost services with non-stop and frequent service. With sustainability becoming a major concern, airlines are focusing on improving aircraft sustainability by reducing carbon emissions, using sustainable aviation fuel, and employing carbon capture technologies. Due to the increase in last-minute bookings and uncertainty around international travel, LCCs are now providing more flexibility to customers regarding cancellations and changes to their trips.
