The global low-cost carrier market is anticipated to exceed 254 billion U.S. dollars by 2027. The main drivers of growth in this market are the increase in air passenger traffic and investments made by major airlines in this business model.

Low cost carriers have rapidly expanded their share of the global air travel market over the last decade or so; in 2020, low-cost carriers accounted for 35 percent of the world’s total seat capacity.

Low-cost carrier market

Low cost carriers are different from full service carriers in how they are able to offer passengers lower ticket prices, primarily through two mechanisms. The first is to charge additional fees for services usually included by full service providers, such as checked luggage and in-flight food and beverages. Second, low cost carriers often (although not always) operate from secondary airports, which generally are cheaper for airlines to use.

Leading low-cost carriers

While the largest low cost carrier market is Europe, the leading low cost carrier both in terms of the number of seats offered and revenue generated is the U.S. carrier Southwest Airlines. Ryanair, the Irish carrier ranked second on both metrics, is growing at a faster rate though, meaning this gap may narrow over time.

In 2018, low cost carriers (LCCs) in Europe performed more than 30 percent of the total number of flights in the region. In 2021, Ryanair was the busiest airline group in Europe, transporting 72.4 million passengers. European low-cost carriers Although LCCs' market share in the European aviation industry increased by almost 20 percent in the last decade, there has been a fierce competitive response by the traditional full-service carriers during this period to sustain their market position. For instance, full-service carriers started to offer some alternative cheaper flight options called budget-economy class. Nevertheless, LCCs have a well-advanced cost-minimization strategy so that they can operate at a much lower expense. In 2020, the average cost per passenger of Ryanair and EasyJet was 90 euros. Usually, LCCs operate on a shorter distance, this requires them to have a dispersed airplane fleet across cities rather than having one main hub for all the flights as it is the case for traditional carriers. An example could be that Ryanair had 274 airplanes in Germany in 2020. Wizz Air European LCC Wizz Air like many other LCCs has a progressive development strategy which enabled it to capture larger market share across Europe. This was ensured by entering new markets which were less explored by other European LCCs such as Eastern Europe. Over the recent decade, the total revenue generated by Wizz Air increased five-folds, reaching over 2.7 billion euros in 2020. In the recent three years, the on-time performance of Wizz Air somewhat deteriorated, down to the lowest level since 2011.

After months of intense fluctuation in 2020 and early 2021, the European low-cost airlines market share stabilized around the 30 percent margin. As of September 2022, the market share of low-cost airlines in Europe amounted to approximately 33.7 percent of the total number of flights.

In March 2022, low cost carriers in the South East Asia region are expected to held over half of the market. The success and emergence of low cost carriers are mainly attributed to the growing demand for air travel in the region.

Europe Low Cost Airline market USD 90462.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031. High demand for affordable travel options and the region's extensive network of budget carriers offering competitive fares is expected to aid the sales to USD 128768.0 million by 2031

Southwest Airlines, carried approximately 126.6 million travelers in 2022, the highest traffic figure among the other selected low-cost airlines.

LCC business model

In the airline industry, ancillary revenue is a major financial constituent for low-cost carriers and ultra-low-cost carriers all over the world. Unbundled sources, such as baggage fees or on-board activities like food or Wi-Fi, represented the highest share of revenue for low cost airlines like Ryanair in Europe or Spirit Airlines in the U.S. in 2020. The success of this business model can not only be seen in the airline’s profitability but also in the increasing demand for this type of service in the aviation industry. As low-cost carriers continue to increase their market share in the air transportation sector, passengers are more inclined to choose what they want to pay for when flying.

In terms of seat capacity, the global low cost carrier (LCC) industry is expanding. According to the International Air Transport Association (IATA), LCCs hold 26% share in Asia-Pacific, 54% in Southeast Asia, and 26% globally. More than 12 airlines started operating in Asia-Pacific during the period 2005–2015. The fast growth in Asia-Pacific can be attributed to the fact that it has some of the fastest-growing economies including China and India Read More

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Full-Service Carrier Market Size 2024-2028

The full-service carrier market size is forecast to increase by USD 81.6 billion at a CAGR of 5.2% between 2023 and 2028.

The market is experiencing significant growth due to several key trends. Business travel, a major revenue driver, is on the rise, leading to increased demand for full-service carriers that offer additional amenities and services. Furthermore, digital transformation is transforming the aviation industry, enabling carriers to improve operational efficiency and enhance the customer experience. The presence of low-cost carriers (LCCs) continues to challenge full-service carriers, forcing them to adapt and offer competitive pricing while maintaining their premium offerings. These trends are shaping the future of the market and presenting both opportunities and challenges for industry players.

What will be the Size of the Full-Service Carrier Market During the Forecast Period?

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The market is a dynamic and evolving industry that caters to travelers seeking premium services and experiences. This market encompasses airlines that offer extensive route networks, codeshare agreements, and integrated travel solutions. Fueled by rising disposable incomes and increasing demand for connectivity, the market has seen significant growth in recent years. Airline alliances have played a crucial role in expanding reach and offering seamless connections. Government support and operational efficiency have also been key drivers, with airlines investing in fuel-efficient aircraft and advanced customer service systems. In response to growing competition and customer expectations, full-service carriers have embraced digital transformation, implementing artificial intelligence (AI) and machine learning to enhance operational efficiency and improve customer satisfaction.
Premium services, carbon offset programs, and in-flight entertainment continue to differentiate offerings, while transatlantic partnerships broaden reach and strengthen market position. Flight schedules and route networks remain critical factors, as airlines strive to offer the most convenient and reliable travel options.

How is this Full-Service Carrier Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  International aviation
  Domestic aviation


Type

  Fixed-wing aircraft
  Rotary-wing aircraft


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Application Insights

The international aviation segment is estimated to witness significant growth during the forecast period.

Full-service carriers are essential players in international aviation, providing passengers with a variety of offerings and comforts for cross-border travel. International aviation significantly contributes to global tourism and travel, connecting diverse countries and continents. Full-service airlines facilitate economic growth by enabling the transportation of people and goods across borders. Air cargo is an integral part of international aviation, transporting perishable goods, electronics, and industrial products, often for time-sensitive shipments, ensuring efficient global supply chains. Disposable incomes enable travelers to utilize full-service carriers' premium services, including airline alliances, government support, and seamless connections. Premium amenities, such as in-flight entertainment, meals, and beverages, enhance the passenger experience.

Operational efficiency, fuel-efficient aircraft, and carbon offset programs contribute to cost savings and sustainability. Digital transformation, artificial intelligence (AI), machine learning, in-flight connectivity, and integrated travel solutions further enhance the travel experience. Regulatory requirements and low-cost carriers offer competition, while codeshare agreements and loyalty programs ensure customer satisfaction. Route optimization and flight schedules cater to business travelers and tourists alike. Capacity, aircraft type (fixed-wing and rotary-wing), and passenger experience are crucial factors for full-service carriers.

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The international aviation segment was valued at USD 192.10 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 36% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market d

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Commercial Airlines Market Size 2025-2029

The commercial airlines market size is forecast to increase by USD 430.2 billion at a CAGR of 8.7% between 2024 and 2029.

The global commercial airlines market is growing steadily, driven by rising demand for air travel, air cargo, and advancements in fuel-efficient aircraft technology. Consumer preferences are shifting toward affordable, flexible travel options, while innovations like next-generation planes are helping airlines meet stricter environmental standards and cut operational costs.
This report delivers a clear picture of the market, including its current size, growth forecasts through 2029, and key segments such as passenger airlines and low-cost carriers. It offers practical data for business applications—think strategic planning, customer outreach, or operational efficiency—with details on market value and regional performance. A key trend is the increasing adoption of sustainable aviation practices, though a persistent challenge lies in supply chain disruptions, particularly with aircraft parts and maintenance. For businesses looking to thrive in the global commercial airlines market, this report provides valuable insights to navigate sustainability trends and supply chain hurdles, ensuring smarter decisions in a competitive and evolving industry.

What will be the Size of the Commercial Airlines Market During the Forecast Period?

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The commercial aviation industry continues to evolve, with passenger aircraft being a significant segment. Among the various sub-aircraft types, narrowbody aircraft have gained considerable attention due to their fuel-efficiency and modern design. These aircraft cater to the product offerings of numerous airlines worldwide, enhancing connectivity and mobility. Aircraft OEMs are constantly improving their product offerings to cater to a wider segment of a booming market, including commercial aircraft passenger service units (PSU). Fuel-efficient narrowbody aircraft are the backbone of many airline industry business models. Manufacturers invest heavily in new aircraft technologies, including engine programs, to meet the growing demand for more sustainable and cost-effective solutions. 



Body type, fuselage, wings, cockpit, engine, tail assembly, and landing gear are essential components of passenger aircraft. Modern aircraft designs optimize these elements to improve fuel efficiency and reduce operational costs. Turbofan engines have become increasingly popular due to their high thrust-to-weight ratio and lower fuel consumption than propeller engines. Cargo transportation is another essential aspect of the commercial aviation industry. Commercial helicopters and gliders serve specific niches, providing unique solutions for transporting goods in challenging terrains and short-haul routes. Integrating these aircraft types into the broader aviation landscape offers a more comprehensive and interconnected transportation network.

How is the Commercial Airlines Market Segmented?

The market 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.Revenue StreamPassengerCargoTypeInternationalDomesticRange OutlookShort-haulMedium-haulLong-haulUltra-long haulFuel EfficiencyConventional Jet FuelBiofuelsElectric PropulsionHydrogen-poweredOperation ModelScheduled FlightsCharter FlightsWet LeasingBusiness ModelNetwork CarriersPoint-to-Point CarriersUltra-Low-Cost Carriers (ULCCs)GeographyAPACChinaIndiaJapanEuropeGermanyUKFranceItalyNorth AmericaCanadaUSMiddle East and AfricaEgyptSouth AmericaBrazilArgentina

By Revenue Stream Insights

The passenger segment is estimated to witness significant growth during the forecast period. The market experienced significant growth in passenger traffic in 2024, with approximately 4.6 billion air passengers passing through airports, marking a 28.3% increase. This expansion was primarily driven by the burgeoning air travel sector in emerging countries, particularly in the Asia Pacific region. In response, aircraft original equipment manufacturers (OEMs) have ramped up production to meet demand and fulfill scheduled deliveries. low-cost carriers (LCCs) are also modernizing their fleets to capitalize on new market opportunities.

However, controlling operating costs remains a significant challenge for commercial airline operators. The increasing number of air passengers is a primary factor fueling the procurement of new aircraft, as fleet expansion is essential to meet the growing demand. Infrastructure growth and rising per capita income in developing countries are also contributing factors to the market's expansion.

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The passenger

GlobalData’s Low Cost Airline Market report provides in-depth analysis of the key market trends that are shaping the future of this segment and an analysis of the low cost airline market globally. Detailed market insight is provided on the Americas, Asia-Pacific, Middle East & Africa, and Europe. It also features profiles of some of the segment’s leading players and looks at how companies can better meet their customers' needs. Read More

Based on the scheduled flights registered in January 2024, 30 percent of intra-European air traffic was handled by low-cost airlines. Other airlines, for example flag carrier airlines, accounted for 70 percent of regional movement.

Forecast: Low-Cost Airlines Passenger in the US 2024 - 2028 Discover more data with ReportLinker!

Japan Transport: Return Trip: Hong Kong: Low Cost Carrier(LCC) data was reported at 229.000 Person in Mar 2018. Japan Transport: Return Trip: Hong Kong: Low Cost Carrier(LCC) data is updated quarterly, averaging 229.000 Person from Mar 2018 (Median) to Mar 2018, with 1 observations. Japan Transport: Return Trip: Hong Kong: Low Cost Carrier(LCC) data remains active status in CEIC and is reported by Ministry of Land, Infrastructure, Transport and Tourism. The data is categorized under Global Database’s Japan – Table JP.Q026: Tourism and Leisure: Characteristics of Visitors and Trips: Transportation.

United States Airline Cost Index: 1982=100: A4A: Qtr: All Others data was reported at 166.800 1982=100 in Jun 2002. This records an increase from the previous number of 166.200 1982=100 for Mar 2002. United States Airline Cost Index: 1982=100: A4A: Qtr: All Others data is updated quarterly, averaging 164.500 1982=100 from Mar 2000 (Median) to Jun 2002, with 10 observations. The data reached an all-time high of 166.800 1982=100 in Jun 2002 and a record low of 160.100 1982=100 in Mar 2000. United States Airline Cost Index: 1982=100: A4A: Qtr: All Others data remains active status in CEIC and is reported by Airlines for America. The data is categorized under Global Database’s United States – Table US.TA010: Airline Statistics (Discontinued).

The Latin American commercial aircraft market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 10% from 2025 to 2033. This expansion is driven by several factors. Firstly, the region's burgeoning economies, particularly in Brazil and Mexico, are fueling increased passenger traffic and demand for air travel. Secondly, governments are investing in infrastructure development, including airport upgrades and expansion, to support this growing demand. Thirdly, the increasing adoption of fuel-efficient aircraft models reduces operating costs for airlines, making expansion more financially viable. Finally, the rise of low-cost carriers (LCCs) is further stimulating competition and driving down fares, increasing accessibility for a broader population. However, challenges remain. Economic volatility in some Latin American countries can impact airline investments and fleet expansion plans. Furthermore, geopolitical uncertainties and potential regulatory hurdles could also pose challenges. Despite these potential headwinds, the long-term outlook remains positive. The market is segmented geographically, with Brazil, Mexico, and Colombia representing the largest segments, driven by their significant populations and established air travel networks. Key players like Airbus SE, Boeing, Embraer, and ATR compete intensely, offering a diverse range of aircraft tailored to the specific needs of the Latin American market. This competition is beneficial to consumers through improved services and competitive pricing. The market's trajectory indicates continued strong growth, making it an attractive investment opportunity for both aircraft manufacturers and airlines. This comprehensive report provides an in-depth analysis of the Latin America commercial aircraft market, covering the period 2019-2033. It offers valuable insights into market size, growth drivers, challenges, and future trends, making it an essential resource for industry stakeholders, investors, and researchers. The report leverages extensive data and analysis to provide a 360-degree view, including detailed segmentation by geography (Brazil, Mexico, Colombia, Rest of Latin America), aircraft type, and key players like Airbus SE, Boeing, Embraer SA, ATR, and Rostec. The base year for the study is 2025, with estimations for 2025 and forecasts extending to 2033. The historical period covered is 2019-2024. Notable trends are: Passenger Aircraft Segment held the Largest Share in 2021.

United States Airline Cost Index: 1982=100: A4A: Qtr: Labour: Cargo Carriers data was reported at 242.300 1982=100 in Jun 2002. This records an increase from the previous number of 240.100 1982=100 for Mar 2002. United States Airline Cost Index: 1982=100: A4A: Qtr: Labour: Cargo Carriers data is updated quarterly, averaging 180.100 1982=100 from Mar 2000 (Median) to Jun 2002, with 10 observations. The data reached an all-time high of 242.300 1982=100 in Jun 2002 and a record low of 165.000 1982=100 in Sep 2000. United States Airline Cost Index: 1982=100: A4A: Qtr: Labour: Cargo Carriers data remains active status in CEIC and is reported by Airlines for America. The data is categorized under Global Database’s United States – Table US.TA010: Airline Statistics (Discontinued).

The statistic illustrates the seat capacity of the low cost carrier market in Africa based on seat capacity from 2007 to 2016 and broken down by segment. In 2014, low cost carriers within Africa accounted for over ten percent of the seats available.

GlobalData’s "Tourism Case Study: Norwegian Air", discusses the low cost carrier's expansion and offers an insight into the key reasons behind the success of the company. Read More

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Used Aircraft Market Size 2025-2029

The used aircraft market size is forecast to increase by USD 1.82 billion at a CAGR of 7.6% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. The rise of low-cost carriers is driving demand for used aircraft, particularly in emerging economies. Additionally, increasing demand from developing countries is contributing to market expansion. However, the market faces challenges, including the high cost of maintenance and operation for used aircraft. These factors are shaping the dynamics of the market, making it an intriguing space for investors and industry players alike. The market is a dynamic and complex sector within commercial aviation, involving various stakeholders such as aircraft brokers, leasing organizations, individual buyers, sellers, and both commercial operators and private citizens. The integration of AI, data analytics, and advanced technologies in aircraft systems, including engine control devices, flight management systems, and power distribution, is shaping the future of commercial aviation.
Furthermore, the growth In the number of low-cost carriers is leading to increased demand for used aircraft, particularly in developing countries. This trend is expected to continue, as these carriers seek to expand their fleets while keeping costs low. At the same time, the high cost of maintaining and operating used aircraft remains a significant challenge for market participants. Despite these challenges, the market is poised for growth, driven by increasing demand and innovative solutions to address the cost challenges.

What will be the Size of the Used Aircraft Market During the Forecast Period?

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This market encompasses a diverse range of aircraft types, including regional jets, airlines' fleets, and cargo aircraft In the form of freighters. Fuel efficiency and passenger traffic are key drivers In the market, with e-commerce and tourism contributing significantly to increased flight activity. Airline cash flows and economic conditions also play a significant role in shaping the market, influencing both aircraft orders and deliveries. Engine technology and system integrators continue to innovate, offering more fuel-efficient options and extended ranges for commercial aircraft.
Furthermore, commercial aviation's continued growth is further fueled by cross-border travelers and the increasing demand for air passenger traffic. Used aircraft are often sourced from original equipment manufacturers (OEMs) through various channels, including direct sales, brokers, and leasing organizations. The market's diversity and constant evolution make it an intriguing and exciting space for all involved, from individual buyers to large commercial operators.

How is this Used Aircraft Industry segmented and which is the largest segment?

The used aircraft 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.

Product

  0-15 years
  16-30 years
  More than 30 years


Application

  Civil aviation
  Military aviation
  Others


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    Japan
    South Korea


  Middle East and Africa



  South America

By Product Insights

The 0-15 years segment is estimated to witness significant growth during the forecast period.

The market, encompassing aircraft aged 0 to 15 years, is poised for significant expansion during the forecast period. Economic growth in developing nations, particularly India and China, driven by industrialization, fuels this segment's growth. Demand for private jets and regional passenger aircraft is high In these regions, bolstering market growth. Aircraft aged between six and ten years are most frequently available for purchase within this age group. Initial buyers typically retain their aircraft for several years due to minimal maintenance costs, leading to fewer sales during the early years. Commercial operators, including airlines, leasing organizations, individual buyers, sellers, private citizens, and businesses In the passenger, cargo, and freight sectors, are key market participants. Fuel-efficient options, passenger traffic, e-commerce, and tourism are significant factors influencing market trends. Engine technology, system integrators, and commercial aviation regulations also play crucial roles. Aircraft maintenance, aviation industry growth, and economic conditions further impact market dynamics.

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The 0-15 years segment was valued at USD 1.47 billion in 2019 and showed a gradual increase during the f