New Discount Airlines Prepare for Takeoff

Use of smaller-market airports allows carriers to offer cheaper flights in the U.S. and abroad.

New discount airlines are taking flight: Canadian carrier WestJet’s low-cost brand, Swoop, took flight in June, while Japan Airlines plans to establish a low-cost line to fly throughout Asia, Europe, and the Americas by 2020, when Tokyo will host the Summer Games. In the U.S., JetBlue founder David Neeleman is looking to launch Moxy in 2021. The airline aims to keep costs down by servicing more-regional airports and charging for amenities.

According to aerospace manufacturer Airbus Group, the global market share of low-cost carriers is expected to grow from 17 to 21 percent by 2034. Discount airlines have helped increase competition in the past decade, leading to lower fares. According to The New York Times, between 2013 and 2016, average one-way fares between Detroit and Philadelphia never dropped below $300. However, when Spirit Airlines launched the same route at less than $100, in 2016, major carriers, including Delta and American Airlines, lowered their prices.

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