Mordor Intelligence has published a new report on low-cost carrier market offering a comprehensive analysis of trends, growth drivers, and future projections.
-- Introduction
The low-cost carrier (LCC) market stands at USD 287.95 million in 2025 and is forecasted to reach a market size of USD 603.38 million by 2030, advancing at a 15.95% CAGR.
This growth reflects a rebound in passenger volumes beyond pre-pandemic levels, led largely by leisure and VFR (visiting friends and relatives) travellers who prioritize cost over frills. As air travel resumes normalcy worldwide, demand for affordable, no-frills travel has surged and low-cost carriers are uniquely positioned to benefit. The low cost structure, combined with modern, fuel-efficient aircraft and expanding networks, underpins the accelerating momentum in the low-cost carrier market.
Key Market Trends
Surge in Price-Sensitive Leisure and VFR Travel: The biggest driver of growth in the low-cost carrier market is the return of leisure and VFR travel. Demand from travellers who are willing to trade comfort for lower fares has surged globally, helping airlines fill seats even on short-notice bookings. This trend is especially strong in emerging markets and among price-sensitive travellers, where affordability often determines travel decisions. Higher load factors allow carriers to slowly raise fares without losing competitiveness, helping protect margins while keeping travel accessible.
Fleet Modernization with Next-Generation Narrowbody Aircraft: Carriers are renewing their fleets with modern, fuel-efficient narrowbody jets (such as the latest A320neo and B737 MAX families). These aircraft burn less fuel, carry more passengers per flight, demand fewer maintenance hours, and thereby reduce cost per available seat-mile by an estimated 15–20%.
Expansion into International and Long-Haul Routes: While domestic short-haul flights remain central, low-cost carriers are increasingly exploring international and long-haul routes. The introduction of extended-range narrowbody jets (such as A321XLR) enables airlines to serve thin long-haul city-pairs previously outside their scope without hefty costs associated with wide-body aircraft.
Digital Sales Channels and Ancillary Revenue Monetisation: Digital direct sales via airline websites and mobile apps dominate bookings, capturing nearly all ticket sales for many low-cost airlines. This direct relationship with customers allows carriers to implement dynamic pricing and personalise optional extras (baggage, seat selection, meals, priority services), boosting ancillary revenue without eroding the base fare appeal.
Market Segmentation
By Aircraft Type
- Narrowbody
- Widebody
By Destination
- Domestic
- International
By Haul Length
- Short-Haul
- Medium-Haul
- Long-Haul
By Distribution Channel
- Online Direct
- Travel Agency
By Geography
- North America
- South America
- Europe
- Middle east&Africa
- Asia pacific
Key Players
- Southwest Airlines Co.
- Ryanair
- easyJet PLC
- Indigo (InterGlobe Aviation Limited)
- Wizz Air Group
Conclusion
The low-cost carrier market is set for robust and sustained growth over the coming years. Catalyzed by rising demand for affordable air travel from leisure and VFR passengers, fleet modernization, and expansion of digital sales channels and ancillary services, the market is on track to more than double in size by 2030.
As carriers continue to optimize costs through fuel-efficient aircraft, direct online sales, and efficient airport and route strategies, the low-cost carrier market growth will likely remain strong offering affordable air travel to a growing global population. Emerging long-haul opportunities, expanding international networks, and increasing adoption in high-growth regions signal a promising future for budget air travel worldwide.
About the company: Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. For any inquiries or to access the full report, please contact: media@mordorintelligence.com https://www.mordorintelligence.com/
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