United States - Consumer Price Index for All Urban Consumers: Airline Fares in U.S. City Average was 238.92500 Index 1982-84=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Consumer Price Index for All Urban Consumers: Airline Fares in U.S. City Average reached a record high of 322.64500 in March of 2013 and a record low of 128.00000 in January of 1989. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Consumer Price Index for All Urban Consumers: Airline Fares in U.S. City Average - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Airline Fares in U.S. City Average (CUUR0000SETG01) from Dec 1963 to Jun 2025 about air travel, travel, urban, consumer, CPI, price index, indexes, price, and USA.

United States - Producer Price Index by Industry: Travel Agencies: Flight Bookings was 83.88600 Index Dec 1989=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Travel Agencies: Flight Bookings reached a record high of 133.20000 in March of 1992 and a record low of 80.89500 in October of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Travel Agencies: Flight Bookings - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Flights (Partial) (WPS471) from Jan 2016 to Jun 2025 about flight, travel, services, commodities, PPI, price index, indexes, price, and USA.

United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Domestic Flights (Partial) was 63.34300 Index Dec 2008=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Domestic Flights (Partial) reached a record high of 106.50000 in September of 2014 and a record low of 61.00000 in October of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Domestic Flights (Partial) - last updated from the United States Federal Reserve on July of 2025.

United States - Producer Price Index by Industry: Travel Agencies: International Flight Bookings was 72.58900 Index Dec 1989=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Travel Agencies: International Flight Bookings reached a record high of 144.60000 in June of 1997 and a record low of 55.50000 in October of 2002. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Travel Agencies: International Flight Bookings - last updated from the United States Federal Reserve on July of 2025.

United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Domestic Flights was 63.34300 Index Dec 2008=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Domestic Flights reached a record high of 106.50000 in September of 2014 and a record low of 61.00000 in October of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Domestic Flights - last updated from the United States Federal Reserve on July of 2025.

United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Flights (Partial) was 92.30200 Index Jun 2009=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Flights (Partial) reached a record high of 115.50000 in September of 2014 and a record low of 89.74200 in October of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of Flights (Partial) - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Producer Price Index by Industry: Travel Agencies: International Flight Bookings (PCU561510561510112) from Dec 1989 to Jun 2025 about flight, agency, travel, PPI, industry, inflation, price index, indexes, price, and USA.

United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of International Flights was 109.41100 Index Dec 2008=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of International Flights reached a record high of 111.83500 in August of 2023 and a record low of 99.40000 in April of 2009. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Travel Arrangement Services (Partial): Arrangement of International Flights - last updated from the United States Federal Reserve on July of 2025.

United States - Producer Price Index by Industry: Travel Agencies: Other Travel Agency Services, Except Flight Bookings was 176.69500 Index Dec 1989=100 in May of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Travel Agencies: Other Travel Agency Services, Except Flight Bookings reached a record high of 179.72200 in October of 2024 and a record low of 97.50000 in August of 1991. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Travel Agencies: Other Travel Agency Services, Except Flight Bookings - last updated from the United States Federal Reserve on July of 2025.

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Low-Cost Carrier (LCC) Market Size 2025-2029

The low-cost carrier (LCC) market size is forecast to increase by USD 348.2 billion, at a CAGR of 15.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing air passenger traffic worldwide. This trend is fueled by the rising preference for affordable travel options, making LCCs an attractive choice for price-sensitive consumers. However, this market is not without challenges. Operating expenses for LCC companies continue to rise, putting pressure on their profitability. The need to maintain low fares while managing these costs presents a significant challenge. Moreover, the increasing adoption of smart airports and advanced technologies, such as contactless check-in and mobile applications, is transforming the industry landscape. LCCs must adapt to these trends to remain competitive and provide a seamless travel experience for their customers.
In summary, the LCC market is characterized by robust growth, fueled by increasing passenger traffic and cost-conscious consumers, while facing challenges from rising operating expenses and the need to innovate to stay competitive in a rapidly evolving industry. Companies seeking to capitalize on market opportunities and navigate challenges effectively must focus on optimizing their operational costs, leveraging technology to enhance the customer experience, and continuously adapting to changing market dynamics.

What will be the Size of the Low-Cost Carrier (LCC) Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the market, dynamics continue to evolve, shaping various sectors with ongoing activities and patterns. Ground handling processes are streamlined through self-service kiosks and digital platforms, optimizing distribution channels and reservation systems. Yield management software and pricing strategies adapt to passenger demand, while route planning and seat allocation are fine-tuned for maximum load factor and capacity utilization. Revenue management and passenger loyalty programs are leveraged to generate ancillary revenue through dynamic pricing and slot allocation. Risk management and airline alliances are essential for cost optimization and fuel efficiency, as LCCs navigate the complexities of turnaround time and fleet management.

Passenger experience is a top priority, with in-flight entertainment, cabin crew training, and customer service enhancing the overall journey. Safety regulations, airport infrastructure, technical maintenance, and sustainability initiatives are continually addressed to ensure operational efficiency and regulatory compliance. Cargo operations, charter flights, aircraft leasing, and digital transformation are additional areas of focus for LCCs, as they adapt to the ever-changing market landscape. Code sharing agreements, unaccompanied minors, online check-in, and web check-in are integral components of the LCC business model, further emphasizing the continuous dynamism of this sector. In this competitive environment, LCCs must remain agile, addressing the challenges of aviation safety, flight scheduling, inventory management, and aircraft maintenance, while maintaining a focus on passenger experience and cost optimization.

How is this Low-Cost Carrier (LCC) Industry segmented?

The low-cost carrier (LCC) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Service

  Passenger service
  Cargo service


Type

  Narrow body
  Wide body


Haul

  Short Haul
  Long Haul


Geography

  North America

    US
    Canada


  Europe

    Germany
    Italy
    Spain
    UK


  APAC

    Australia
    China
    India
    Japan


  Rest of World (ROW)

By Service Insights

The passenger service segment is estimated to witness significant growth during the forecast period.

The market has experienced significant growth due to the rising number of air passengers. According to the International Air Transport Association (IATA), global passenger demand, measured in revenue passenger kilometers (RPKs), increased by 8.1% year-on-year in November 2024, while capacity, measured in available seat kilometers (ASK), grew by 5.7%. This led to a load factor of 83.4%, an improvement of 1.9 percentage points. International passenger demand surged by 11.6% compared to November 2023, with capacity expanding by 8.6%, resulting in a higher load factor. LCCs face substantial fuel costs, which can significantly impact their profitability, as they already offer lower fares than traditional carriers.

Self-service kiosks and online check-in have become common practice

The Aviation Market Report is Segmented by Type (Commercial Aviation, Military Aviation, General Aviation, Unmanned Aerial Systems, and Advanced Air Mobility), Propulsion Technology (Turboprop, Turbofan, Piston Engine, and More), Power Source (Conventional Fuel, Fuel Cell, and More), Fit (Line Fit, and Retrofit), and Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

The graph depicts the poll results for a survey about a flight in space. People were asked whether they would be willing to pay 1,000 U.S. dollars for a 10-minute flight in space. 24.6 percent of the respondents would be willing to pay that price for a flight in space, whereas 67.9 percent would not pay that kind of money for a space flight.

Euro Area - Harmonised index of consumer prices (HICP): Domestic flights was 197.74 points in June of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Euro Area - Harmonised index of consumer prices (HICP): Domestic flights - last updated from the EUROSTAT on July of 2025. Historically, Euro Area - Harmonised index of consumer prices (HICP): Domestic flights reached a record high of 197.74 points in June of 2025 and a record low of 88.03 points in November of 2020.

The India Aviation Market is segmented by Aircraft Type (Commercial Aviation, General Aviation, Military Aviation). Key Data Points observed include air passenger traffic, air transport freight, defense spending, military aircraft active fleet, revenue passenger kilometers, high-net worth individuals, and inflation rate.

The average fare for a ticket on the low-cost airline AirAsia amounted to *** Malaysian ringgit in 2023, higher compared to *** Malaysian ringgit on average in 2022. The Malaysian airline operates in ** countries, mainly with international flights, but also with local offshoots such as AirAsia Indonesia, Thai AirAsia, AirAsia India or Philippines AirAsia.

United States - Producer Price Index by Commodity: Transportation Services: Airline Passenger Services, International was 116.08800 Index Dec 2008=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Transportation Services: Airline Passenger Services, International reached a record high of 134.33500 in July of 2023 and a record low of 81.60000 in March of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Transportation Services: Airline Passenger Services, International - last updated from the United States Federal Reserve on July of 2025.

United States - Producer Price Index by Commodity: Transportation Services: Airline Passenger Services, Domestic was 143.24400 Index Dec 2008=100 in June of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Transportation Services: Airline Passenger Services, Domestic reached a record high of 149.14100 in December of 2024 and a record low of 92.20000 in May of 2009. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Transportation Services: Airline Passenger Services, Domestic - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Producer Price Index by Commodity: Transportation Services: Airline Passenger Services (WPU302201) from Dec 2008 to Jun 2025 about passenger, air travel, travel, transportation, services, commodities, PPI, inflation, price index, indexes, price, and USA.