Low Cost Airline Market Report 2025 (Global Edition)

Global Low Cost Airline Market Report 2025 Market Size Split by Purpose (Leisure Travel, Visiting Friends & Relatives (VFR), Business Travel), by Destination (Domestic, International), by Distribution...

Low Cost Airline Market Report Description

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Low Cost Airline Market Insights Video

Competitive Landscape of the Low Cost Airline Market

The competitive landscape of the low-cost airline market is characterized by numerous established and emerging players offering budget-friendly travel options. Major carriers like Southwest Airlines and Ryanair dominate with extensive route networks and aggressive pricing strategies. Competition is driven by factors such as operational efficiency, ancillary revenue models, and customer service enhancements. New entrants and regional players also compete by targeting underserved markets and offering innovative digital solutions, driving continuous evolution in the low-cost travel sector.

February 2023: Air India signed a major agreement with Airbus, securing orders for 140 A321neo and 70 A320neo aircraft, along with 40 widebody A350s, which include six A350-900s and 34 A350-1000s. In parallel, Air India also placed an order with Boeing for 190 Boeing 737MAX narrowbody planes, 20 Boeing 787 Dreamliners, and 10 Boeing 777X aircraft. These strategic decisions highlight the anticipated growth of the narrowbody aircraft segment. (Source: https://www.airbus.com/en/newsroom/press-releases/2023-06-air-india-firms-up-order-for-250-airbus-aircraft-selects-new) April 2024: Air Arabia, a prominent airline in the Middle East and North Africa, introduced a significant seat sale, providing discounts on 150,000 seats across its entire flight network. The offer included direct flights from various Indian cities to three UAE airports: Sharjah, Abu Dhabi, and Ras Al Khaimah. (Source: https://timesofindia.indiatimes.com/spotlight/air-arabia-launches-early-bird-promotion-on-150000-seats/articleshow/109490488.cms) January 2023: IndiGo expanded its fleet to 300 aircraft, enhancing its capacity to meet increasing travel demands on both domestic and international routes. (Source: https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/indigo-expands-its-fleet-to-300-aircraft/articleshow/96798176.cms?from=mdr)

Top Companies Market Share in Low Cost Airline Industry: (In no particular order of Rank)

• Southwest Airlines
• Ryanair
• EasyJet
• JetBlue Airways
• AirAsia
• Spirit Airlines
• Wizz Air
• IndiGo
• Norwegian Air Shuttle
• Scoot
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of the Low Cost Airline Market

Which Region Dominates the Low Cost Airline Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024. It accounted for around 40% of the global revenue due to the region's well-established air travel infrastructure and strong demand for affordable travel options. The region's large population, high disposable incomes, and preference for budget-friendly travel drive the popularity of low-cost carriers. Additionally, major players like Southwest Airlines and JetBlue have extensive networks and competitive pricing strategies, further solidifying the region's dominance. The presence of multiple hubs and high-frequency routes also contributes to North America's leading position in the market.

Which Region is Expanding at the Fastest CAGR?

The Asia Pacific region is growing at the fastest CAGR in the low-cost airline market due to rapid economic growth, increasing disposable incomes, and a burgeoning middle class eager to travel. The region's vast and diverse population, coupled with the expansion of low-cost carriers like AirAsia and IndiGo, has made air travel more accessible. Additionally, the rise of tourism and business travel within and beyond the region, along with government support for aviation infrastructure, is fueling this accelerated growth.

The current report Scope analyzes Low Cost Airline Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Low Cost Airline Market

According to Cognitive Market Research, the global Low Cost Airline market size was estimated at USD 301542.6 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 120617.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Low Cost Airline market with a market size of USD 95166.84 million in 2024 and is projected to grow at a CAGR of 4.0% during the forecast period. The nation's increasing demand for affordable travel options and a rise in budget-conscious travelers is driving the Low Cost Airline market.
• The Canada Low Cost Airline market had a market share of USD 14474.04 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period. Canada's growing emphasis on cost-efficiency in air travel is driving the Low Cost Airline market.
• The Mexico Low Cost Airline market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 10976.15 million in 2024.

Europe Low Cost Airline Market

According to Cognitive Market Research, the global Low Cost Airline market size was estimated at USD 301542.6 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 90462.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.

• The United Kingdom Low Cost Airline market had a market share of USD 15197.75 million in 2024 and is projected to grow at a CAGR of 5.3% during the forecast period. In the UK, Low Cost Airline sales witness an upswing due to high demand for affordable travel options and the region's extensive network of budget carriers offering competitive fares.
• The France Low Cost Airline market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 8322.58 million in 2024.
• According to Cognitive Market Research, the German Low Cost Airline market size was valued at USD 17911.63 million in 2024 and is projected to grow at a CAGR of 4.7% during the forecast period. In Germany, Low Cost Airline surged due to the presence of major market players.
• The Italy Low Cost Airline market is projected to witness growth at a CAGR of 3.9% during the forecast period, with a market size of USD 7779.80 million in 2024.
• The Russia Low Cost Airline market is projected to witness growth at a CAGR of 3.5% during the forecast period, with a market size of USD 14021.73 million in 2024.
• The Spain Low Cost Airline market is projected to witness growth at a CAGR of 3.6% during the forecast period with a market size of USD 7417.95 million in 2024
• The Luxembourg Low Cost Airline market is projected to witness growth at a CAGR of 4.6% during the forecast period, with a market size of USD 2804.35 million in 2024.
• The Portugal Low Cost Airline market is projected to witness growth at a CAGR of 4.3% during the forecast period, with a market size of USD 1899.72 million in 2024.
• The Greece Low Cost Airline market is projected to witness growth at a CAGR of 4.8% during the forecast period, with a market size of USD 1085.55 million in 2024.
• Rest of Europe's Low Cost Airline market is projected to witness growth at a CAGR of 3.2% during the forecast period, with a market size of USD 14021.73 million in 2024.

Asia Pacific Low Cost Airline Market

According to Cognitive Market Research, the global Low Cost Airline market size was estimated at USD 301542.6 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 69354.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.

• According to Cognitive Market Research, the China Low Cost Airline market size was valued at USD 31209.66 million in 2024 and is projected to grow at a CAGR of 7.5% during the forecast period. Low Cost Airline surged in China due to increasing disposable incomes, a rising middle class, and strong demand for affordable air travel.
• The Japan Low Cost Airline market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 9570.96 million in 2024.
• The India Low Cost Airline market had a market share of USD 8322.58 million in 2024 and is projected to grow at a CAGR of 9.8% during the forecast period. India's regulatory support for low-cost carriers is driving the Low Cost Airline market.
• The South Korean Low Cost Airline market is projected to witness growth at a CAGR of 7.1% during the forecast period, with a market size of USD 6935.48 million in 2024.
• The Australian Low Cost Airline market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 3606.45 million in 2024.
• The South East Asia Low Cost Airline market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 4785.48 million in 2024.
• The Rest of Asia Pacific Low Cost Airline market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 4924.19 million in 2024.

South America Low Cost Airline Market

According to Cognitive Market Research, the global Low Cost Airline market size was estimated at USD 301542.6 Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD 15077.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031. .

• According to Cognitive Market Research, the Brazil Low Cost Airline market size was valued at USD 6453.01 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period. Low Cost Airlines flourished in Brazil due to rising demand for affordable air travel and increasing middle-class populations.
• Argentina's Low Cost Airline market had a market share of USD 2532.96 million in 2024 and is projected to grow at a CAGR of 6.3% during the forecast period. Argentina's infrastructure development augment the demand.
• Colombia Low Cost Airline market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 1341.86 million in 2024.
• Peru Low Cost Airline market is projected to witness growth at a CAGR of 5.6% during the forecast period, with a market size of USD 1236.32 million in 2024.
• Chile Low Cost Airline market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 1085.55 million in 2024.
• The Rest of Latin America's Low Cost Airline market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD 2427.42 million in 2024.

Middle East and Africa Low Cost Airline Market

According to Cognitive Market Research, the global Low Cost Airline market size was estimated at USD 301542.6 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 6030.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031..

• The GCC Countries Low Cost Airline market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 2581.20 million in 2024. Low Cost Airline sales flourish due to the presence of major market players.
• The Egypt Low Cost Airline market is projected to witness growth at a CAGR of 6.0% during the forecast period, with a market size of USD 633.24 million in 2024.
• The South Africa Low Cost Airline market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 952.87 million in 2024. Low Cost Airline sales flourish in South Africa due to increasing demand for affordable travel and expanding middle-class populations.
• The Turkey Low Cost Airline market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 518.65 million in 2024.
• The Nigeria Low Cost Airline market is projected to witness growth at a CAGR of 4.8% during the forecast period, with a market size of USD 633.24 million in 2024.
• The Rest of MEA Low Cost Airline market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 711.64 million in 2024.

Low Cost Airline Market Analysis

Low Cost Airline Market Purpose Segment Analysis

According to Cognitive Market Research, Leisure Travel stands out as the dominant category. Leisure travel captured the largest market share in the low-cost airline market due to the growing preference for affordable vacations and short getaways among budget-conscious travelers. Low-cost carriers offer competitive fares and extensive route networks, making it easier for people to explore new destinations without breaking the bank. The rise of tourism, especially in emerging markets, and the increasing popularity of weekend trips and holiday travel, have further driven demand for low-cost flights, solidifying leisure travel's dominant position in the market.

The Visiting Friends & Relatives (VFR) segment is growing at the highest CAGR in the low-cost airline market due to increased global migration and the growing diaspora communities. As more people live away from their home countries, there is a rising demand for affordable travel options to maintain family and social connections. Low-cost airlines offer budget-friendly fares, making frequent travel between distant locations more accessible. Additionally, the convenience of direct flights to regional hubs further supports the rapid growth of this segment.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Low Cost Airline Industry. Request a Free Sample PDF!

Low Cost Airline Market Destination Segment Analysis

According to Cognitive Market Research, the dominant category is Domestic. Domestic destinations captured the largest market share in the low-cost airline market due to the high demand for short-haul travel within countries, where budget-conscious travelers seek affordable and convenient options. Low-cost carriers cater to this demand by offering frequent flights, competitive pricing, and extensive coverage of regional and secondary airports. Additionally, the growing trend of domestic tourism, business travel, and short getaways has fueled the preference for low-cost airlines, making domestic routes more popular and dominant in the market.

International destinations are growing at the highest CAGR in the low-cost airline market due to the increasing demand for affordable global travel. As more budget-conscious travelers seek to explore international locations, low-cost carriers are expanding their networks to include more cross-border routes. The rise of tourism in emerging markets, the availability of low-cost long-haul flights, and competitive pricing strategies make international travel more accessible. Additionally, the expansion of partnerships and code-sharing agreements with other airlines enhances connectivity, driving rapid growth in this segment.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Low Cost Airline Distribution Channel Segment Analysis

Low Cost Airline Market Distribution Channel Segment Analysis

According to Cognitive Market Research, the dominant category is Online. The online distribution channel captured the largest market share in the low-cost airline market due to its convenience, accessibility, and ability to offer competitive pricing directly to consumers. Travelers increasingly prefer booking flights through airline websites and online travel agencies (OTAs) for the ease of comparing prices, accessing promotions, and managing bookings in real-time. The digitalization of the travel industry and the rise of mobile apps have further boosted online bookings, making it the dominant channel for low-cost airline ticket sales.

The Travel Agency distribution channel is growing at the highest CAGR in the low-cost airline market due to the increasing preference for personalized travel services and comprehensive booking solutions. Travel agencies offer convenience by providing expert advice, bundled travel packages, and customer support, which enhances the overall travel experience. Additionally, as low-cost airlines expand their networks, travel agencies are leveraging their extensive reach and relationships to offer these budget-friendly options to a broader audience, driving their rapid growth.

• Online
• Travel Agency
• Others

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Sumedha Gosavi

Research Associate at Cognitive Market Research

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