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Home / TIPS + PLANNING / Airlines + Airports / U.S. Growth in New Budget Positive Air Travel Outlook from Airlines

U.S. Growth in New Budget Positive Air Travel Outlook from Airlines

2023-01-09  Tatiana Travis
Avelo Air

 

Our December sections will be devoted to analysing the most significant travel trends for 2021. Continue reading to learn more about the changes influencing the future of travel, including the emergence of new low-cost airlines, significant changes to airline loyalty programmes, the rising acceptance of "adult study abroad" opportunities, and a look at the top travel and outdoor gear trends for 2022.

Travel may have been difficult during the past year, but despite an ongoing pandemic, one industry has managed to thrive: inexpensive airlines.

A year of low passenger volumes and quiet airports has seen the emergence of several new low-cost airlines as well as the expansion of some well-known ones. In addition to the reduced prices offered by these airlines, new routes connecting previously untapped markets and more competition for passengers' business both benefit travellers.

The most recent wave of low-cost carriers fly to smaller, more frequently used gateways by leisure tourists. Willis Orlando, a flight deal scout with Scott's Cheap Flights, said, "They're linking these odd routes as Southwest did in the 1990s instead of attempting to fight one-to-one with legacy carriers."

These airlines are concentrating their efforts on cities like New Haven, Connecticut; Akron, Ohio; Tampa, Florida; and Burbank, California instead of John F. Kennedy International Airport, Chicago O'Hare International Airport, and Los Angeles International Airport.

David Neeleman, the guy behind JetBlue, started Breeze Airways, a brand-new domestic airline, in May. It provides service to cities like Tampa, Louisville, Tulsa, and Akron. Avelo Airlines, founded by Andrew Levy, a former COO of discount airline Allegiant Air, debuted in April with an emphasis on neglected tourist hotspots like national parks and cultural centres.

Only Avelo operates flights between Fort Collins, Colorado, and New Haven, Connecticut, at the moment. According to Jim Olson, the company's head of communications, "We have purposefully selected routes and airport combinations that do not have existing service." The positive feedback we have had from these and the other places Avelo serves is really encouraging.

Avelo will offer service to 18 U.S. locations by the end of December.

The definitive proof of concept, according to Olson, is the favourable demand and booking trends. We are just getting began, and we anticipate launching much more aircraft and expanding to far more stunning and well-liked locations.

Aha!, a different brand, became popular in late October. ExpressJet's regional airline intends to link many locations in California, Oregon, and Washington with Reno, Nevada, and the larger Lake Tahoe area. The company's name, "air-hotel-adventure," is an acronym that alludes to its desire to market holiday packages.

Airbahn, based in California, intends to debut there in early 2022. Tariq M. Chaudhary and his family, who hold a significant stake in Airblue, Pakistan's second-largest airline, launched Airbahn. Much like Southwest has become Texas' hometown airline, Chaudhary aspires to create a brand that would become California's airline. The airline has already made a purchase for its first aircraft and plans to create a hub in one of the well-liked alternatives to LAX, such as Ontario, Long Beach, or Orange County.

The quantity and calibre of low-cost airlines have both significantly increased, according to Orlando of Scott's Cheap Flights.

Many airlines today function like cheap airlines but present themselves more like legacy carriers, frequently including seat reservations, bags, and meals in ticket rates. He refers to this type of airline as a "tweener."

 

 

These airlines have, in some ways, been less affected by the pandemic than their titanic rivals. New airlines have been allowed to hire their experienced former team members and hand-pick the routes they'll serve in a market now driven more by leisure travel than by business travel as established carriers have laid off flight crews and reduced their route maps.

And the revival of inexpensive airlines is not limited to domestic travel. Additionally, there is more competition from abroad. Budget flights from Oslo to London, Paris, New York, Los Angeles, and Florida are planned by Norse Atlantic Airways.

Launched in June, Play is a brand-new Icelandic airline that will step in to fill the void left by WOW's cancellation in 2019. Play's debut flight was from London Stansted to Reykjavik's Keflavik International Airport. Additionally, play flies from Iceland to Warsaw, Barcelona, Paris, Amsterdam, Berlin, and Copenhagen.

New airlines have been allowed to hire their experienced former team members and hand-pick the routes they'll serve in a market now driven more by leisure travel than by business travel as established carriers have laid off flight crews and reduced their route maps.

JetBlue, albeit not a brand-new airline, has concentrated its low-cost expansion efforts on transatlantic routes that link London and New York. A new direct flight from Seattle-Tacoma International Airport to Helsinki-Vantaa Airport in Finland will be added by Finnair in June, along with additional flights from New York and Los Angeles planned for the following spring.

 

In the meantime, French Bee, a long-distance airline located in Paris Orly, has expanded its route schedule. In addition to flying between San Francisco and Tahiti and Reunion Island, French Bee now connects San Francisco with Newark and Paris. In April, it intends to begin offering nonstop service between Los Angeles and Paris.

The French government stated in July that it would reopen its borders to American tourists after more than a year. Shortly after that announcement, French Bee began operating direct flights between Newark and Paris. The business decided to expand despite knowing it was unsafe to do so during a pandemic at the time.

French bee President and CEO Marc Rocher said, "We knew we were taking a risk when we described the Newark to Orly launch plans, despite the constraints in place.

The company has also been pleasantly surprised by the positive reception its new lines have received, despite changing travel restrictions brought on by a continuing pandemic. Given that we are relatively new and not widely recognised, Rocher remarked, "We were shocked to see such a strong response from the American market."

Budget airlines defied the trend by extending routes and expanding passenger capacities during the pandemic, when the majority of airlines drastically reduced their services. Only three airlines—Frontier, Spirit, and Allegiant, all low-cost carriers—increased their passenger capacity during the pandemic.

They have been aggressive, adding flights all over the world and substantially reducing rates, according to Orlando.

Orlando has noticed traditional carriers cutting more deals on short-haul routes that are in competition with Avelo since Avelo joined the market, and he anticipates this trend to continue. He remarked, "Those airlines have little choice except to maintain those low costs.


2023-01-09  Tatiana Travis