‘Low-cost carriers,’ with Ryanair and EasyJet in the lead, have increased their share of passenger traffic in most European countries into the 40%+ range. In two countries, Spain and the UK, they have actually taken the lion’s share.
The rise of the low-cost carriers over the past 20 or so years has severely shaken up the European airline industry, opening new routes to new passengers and increasing business overall, while at the same time putting a big crimp in the sales and profits of legacy carriers.
That’s reflected in a series of airline failures and consolidations in recent years, with more likely in the months ahead. Prior to the 90s, most airlines were state-owned and free from competition.
A study by Europair, a Spanish air broker, looking at data from September 2016 to August 2017 shows the legacy airlines still holding 59% of business in the 17 countries where they are leading, but in a number of those countries the LCC totals are as high as 48%. In Spain, LCCs account for 55% and in the UK 54%.
