Recent times have seen the market for short haul airlines increase, and take their fair share of the overall aviation market share. Has that now come to an end?
As more low cost airlines start up and increase competition in this arena, two of the big names in low cost airlines are, for the first time, beginning to show a slowdown in profit as well as slowed growth. With these latest numbers, which reflect less profit over this past winter, it is perhaps an indication of a shakeup that is likely underway.
Legacy airlines that have been on life support and barely hanging on in the last few years will, in most cases, flat line. According to Andrew Lobbenberg, airlines analyst at HSBC, the next five years should see significant change in the European market.
Low cost airlines that formerly focused on no frills deals with no extras have now begun to focus on customer service and amenities, whilst legacy airlines have begun to reduce their costs to long haul destinations in order to compete successfully.
Some of the carriers such as Norwegian saw these changes coming and are amongst the first larger airlines to offer long haul flights at a much reduced cost than other airlines, as well as possibly being in negotiations with airlines such as Ryanair and EasyJet to act as feeder airlines to their larger hubs and long haul flights.
With budget airlines proving they can provide customer service and a pleasant flight, and the legacy airlines, reducing their costs without taking away from the flight experience, it will, indeed be interesting to see where these changes will take us in the next five years.