Is the Era of Low Cost Airlines Over?
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- เผยแพร่เมื่อ 19 ก.ย. 2024
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Since the pandemic, many low cost airlines (including Southwest, Spirit and JetBlue) have struggled to bounce back. So in this video we unpack the business model of low cost airlines and why it's beginning to break.
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Is the Crabification of the average TH-cam Channel
Just for MrBeast and CoCoMelon to talk about the USA train logistics.
Is Wendover Mr Beast?
The odd time im interested in one of these videos I just hit chatgdp to tell me the summary and save 10 mins with a few sentences:
Is the Era of Low Cost Airlines Over?
Summary
🌍 Global Impact of Low-Cost Airlines: Revolutionized air travel, making it more accessible worldwide.
📉 Current Struggles: US carriers like Southwest, Spirit, and JetBlue face post-pandemic financial challenges.
💼 Southwest Issues: Largest US domestic airline; activist investor demands leadership change due to poor performance.
💸 Profit Margins: Spirit and JetBlue haven't turned a profit since the pandemic.
🛫 LCA Business Model: Focus on no-frills, low-cost service with fees for extras like boarding or baggage.
👷 Staffing Shortages: Airlines face difficulties hiring pilots and crew post-pandemic.
✈ Aircraft Delays: Boeing and Airbus delays due to supply chain disruptions affect expansion.
⛽ Fuel Costs: Rising fuel prices hit LCAs harder due to thinner profit margins.
⚙ Inflation: Increased costs for maintenance, parts, and airport fees.
🧳 Leisure Customers: LCAs focus on leisure travelers, who are now more price-sensitive in a tough economic climate.
🎯 Changing Expectations: Travelers demand more convenience and flexibility from LCAs, making full-service carriers more attractive.
🛬 Legacy Competition: Major airlines now offer cheaper, no-frills options, further challenging LCAs.
🇪🇺 European Market: Even more competitive and environmentally conscious, with travelers opting for alternatives to flying.
💡 Adapting to Customers: LCAs need to focus on providing better value beyond just low prices to retain their customer base.
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Thank god we have a robust international rail network to pick up the slack right?
*cries Scottish tears*
Tr
@@TyrooShinofffff ffffffffeyy😊😊
we have robust national rail network (with few exceptions)
That's already something
Well, yes, we do, as it happens. You can easily get by rail from the UK to Europe and basically anywhere in Europe you'd want to go. And while the Labour Party and Conservatives stuffed up HS2 (Labour proposed it, many years late after HS1, Conservatives approved it, both failed this city) dozens of pan-European high speed rail projects are going ahead, with the explicit goal to take high speed rail from a small thing to a big thing, that's interconnected in more places. Just because the UK has become bad at implementing stuff, doesn't mean the other countries aren't just getting on with it.
Obviously, we can expect this new Labour government to just restart the full HS2 project, because it's financially insane not to spend the money. And surely they have at least one ambition to make our lives better, right? They also, famously care about the north, so will obviously want to do HS3 and go all the way to Scotland too and they won't shy away because they're totally incompetent and untrustworthy with no vision of a bright future for the UK.
This reminds me of what Richard Branson once said when someone asked him what the fastest way to make a million dollars was. "Oh that's easy," replied Branson, the wealthy CEO of Virgin Airlines, "start with a billion, then buy an airline."
The common person can only be squeezed so much.
LCS are buses in the sky. For short flights, my family of 4 or 5 (including my mum) can tolerate the general unpleasantness (all that waiting and queuing) but for longer flights and longer trips, it just doesn't make sense to fly LCS after we add in the extras. (Luggage, more legroom, power plug access, meals, etc.) Full-service carriers costs just 10-15% more after adding the extras in LCS.
More importantly, full service carriers makes you feel like a valued customer. And the departure & arrival times are also better for vacationers.
I mean, air travel has been in crisis since it's inception. Basically the answer is they don't know how to make a business model; yet, they keep working and making tons of money. So apparently the problem is not as big, the problem seems more of an unrealistic expectation of neverending and ever growing profits (the same problem all other induestries have).
and you have also to consider that airlines have toooooons of regulation they need to abide by (otherwise governments will actually block them from operating). So (luckily for everyone but the greedy fuckers at the top) they can't cut operational costs
Which also means they have to make tickets as expensive as possible, and squeeze seats as much as possible to be even barely profitable
Btw trains are just better. If only we lived in a world where everywhere was built like switzerland and you could go anywhere by train (plains make sense only for veeeeery long travels, and travels over an ocean)
@no_name4796 train travel in Switzerland is so expensive though... The 60km, 35 minute train from Genève to Lausanne is over €40 return if I remember right. Everything is more expensive in Switzerland but it does feel disproportionately more expensive compared to most European countries (and feels even more expensive than the UK although maybe not compared to local wages). There is definitely a cost to Swiss trains
I kinda feel like Jack only made this video just so he could make a bunch of plane puns 😂
You just scratched the surface, what about lost baggage, check-in apps that don't work on Android, no refunds for canceled flights. Once even the air company went bankrupt literally mid-air when I was flying, that was WOW Air in 2019. What's the point of going on vacation if you constantly fear what could happen with your flight. No thanks.
Seems like an american not a European problem
Ryanair is in financial trouble as well.
easyJet and I think Wizz are doing fine though.
@@drscopeifyRyanair is profitable.
@@Squaretable22 Are they?
US is solidly European
Latin America is where actual Americans still reside as Canada chose genocide as well.
First it was Corona, then it was Energy and now its Ukraine, they will always find a reason to not lower the prices when the reason before doesn't apply.
Greedflation out of control
Gotta love capitalism, where the poor defends their slave masters
1:00, you can see Spirit and Jetblue failing to break even and posting losses, there's not much more price drop they can engage in. And Southwest who did post a profit had a profit margin of 2-3%, even if they eliminated all profits, ticket prices would drop by a measly portion.
I used to fly and travel a lot, I've been to 72 countries. Air travel is so hideous now I prefer to stay home or travel by car, I've stopped long distance travel. The few low cost carriers I've been on were so dreadful, uncomfortable and made you feel more like cattle than human, will never use them again.
i fly at the front of the plane and never had a bad experience
If your flying economy then you get what you pay for
@@charlesjay8818 Not everyone has the choice of flying in premium classes. Rather arrogant coment!
Oh no, given the current situation, don't know if Jetblue would be forced to sell its JFK slot?
Low cost airlines aren’t that cheap anymore with the amount they charge for everything else
Catch up! The era of everything is over at this point.
In my teenage years i've flown both low cost, and flag carrier... Now that i'm paying, i'm choosing the flag carrier every time. the extra on short to medium flights isn't that bad it you're willing to fly at garbage times, and the extra service and comfort are much appreciated
Trips around europe are usually short, i have very little luggage so cheap flights are perfect. I don't need food or drinks or anything on a 2 hour flight.
Brussels edinburg on ryanair is 130 euros 2 way. On brussels airways it was about 700. Both on friday evening.
Intercontinental i will always fly business on a high quality airline.
@@rogerk6180 that's fair, but if you're willing to fly at an uncomfortable time, that flag carrier can come down to 150.
Before I even play it, the answer is: No.
Bad joke, but it's ironic that the video's length is 9:11.
clearly intended
Big problem with Spirit and JetBlue is that they don’t fly to many places like Southwest.
Ryanair seems to be doing pretty well in Europe still. Though prices are not as low as they were, say, 10 years ago. I remember booking a flight from Brussels to Madrid (about a 3 hour flight) and back which set me back a whopping 160 euro. And that's for both flights combined, including a checked-in bag, and seat reservation.
Now I wouldn't be able to book that flight anymore because ryanair doesn't really fly from Brussels anymore because it's too expensive.
But doing a similar flight from the nearest airport they do still serve would set me back 300 euro today.
In any case, I value comfort a lot more now than I did then so I no longer fly Ryanair if I can avoid it. For my last travel (to Greece last month) I picked a legacy carrier and went Business class for the first time in my life. And now I'm spoiled forever, business class rules.
I remember travelling with Ryanair from my hometown in Spain to Stockholm for 1€ plus taxes. It was cheaper to travel to Stockholm than to take a taxi to the airport. But like you, I also value certain comfort now and it's been more than a decade that I simply ignore Ryanair.
Ngl, Southwest Airlines is kind of cool here in the US especially with the rewards programs…
From my understanding though the US never really had cheap airlines like Europe. Even when accounting for distance, they were still usually x2-x3 the price of Europes cheap airlines like Ryanair, Wizair or even the much more expensive easy jet. Now, obviously, this is because of the higher income in the US along with more expensive airports. Bit still a cheap plane ticket in the US is $100 in Europe I took 6 flights for a little over that price in 2023. And they weren't short either
Scotland- Germany €15
Belgium - Israel €32
Israel- Romania €20
Romania Scotland €20
Scotland - Bulgaria €25
Bulgaria-Scotland €20
Thing is no other airline aside for Ryanair could even hope to match those prices. Wiz air and Easy jet regularly go from €60-100 per flight sometimes.
AirAsia: Am I a joke to you?
Different market and different needs.
A different sponsor other than Brilliant? Impossible!
LCCs. Low cost carriers.
Not LCA
Looking at growth rates of low-cost vs full-service airlines globally, it is clear that this is exclusively an American phenomenon. The US market never had much low cost traffic in the first place, nevermind ultra-low-cost-carriers. Claiming that low-cost airlines are struggling while Ryanair is about to grow into the largest airline in the world is nonsense.
J9 is my favorite LCC.
I think costumers just want a little more quality. Thinks got to bad lately. No need for luxury just a little better
I haven't considered Southwest a low-price carrier for decades. It's nothing like WizzAir or RyanAir in Europe. Really none of the US carriers use the really budget elements of busses and stairways and flying to a Parisian-labeled airport that's not in France. Still Southwest is rarely price competitive, though they are flexible.
It was a bit misleading to talk about rail in Europe as an alternative because the trend is quite the other way around. Budget airlines have been taking market share from rail for over a decade now and it's been a problem for DB and ÖBB and other international operators.
American low cost airlines... Certainly not in Europe or Asia
sure hope so
Luckilly the international rail network is getting more integrated every year. Rather take trains anyway.
as an early supporter and investor of ai, my answer to the title is yes. 1st class here on out ✈️📈🇺🇸💰
Not the video length
yes he is a loser
no class
Based.
It wont be over just yet.
But there will be more creative fees/ ancillary charges...
Won’t accept the Southend airport slander
Dach Pine
I have enough self respect not to fly southwest. It's cheap for a reason even if I don't have that much cash to burn.
I say we triple the cost of private flights and drop the low cost ones that most people use...the rich are gonna pay anyway 😂😂
All airlines should just ditch food and drinks service It’s unhealthy garbage anyways. People can bring their own. They must just make sure to pass on the savings
You mean bring food from home? Airports would never allow that and the cost of food at the airports are much worse.
Commenting 4 algorithm
Small electric planes are coming in the relatively near future, at least in terms of buying aircraft and ships and the like so even if the low cost airlines struggle now, the nature of short flights is going to change in a number of ways. Not to mention the massive ramp up in high speed rail projects across all the bits of Europe you'd want visit, and also Germany.*
Airships might do something for us but I think it's fair to say that remains to be seen, unlike hydrogen based cars which are a disappointment and will never help us. Hyperloop is still making progress but once the technology is ready, you'd never either new tunnels or highly upgraded ones and it's probably not going to be useful for anything but mid-range trips anyway (not much point if you stop the thing every 20 miles but great to go from London to Paris, or Edinburgh).
Basically, the future is bright but ditch your ICE car and acknowledge that we did land on the moon, do need to colonise Mars so we don't eat an asteroid for breakfast that wipes out all life on Earth including us, the Earth is not flat, and climate change is real and solvable.
*Feel free to insert your European country of choice that you've no interest in visiting and want to poke fun at like Monaco, or Austria, or Italy.
Their stock price is coming in for a landing.
TLDR US
So, they provide shitty service that doesn't end up fitting with the new normal, so they do like crap?
Isn't that like, exactly how people should expect to happen yet the video makes it seem like "surprised Pikachu face" reveal.
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Yes it is hopefully over; it was a terrible race to the button 🤷🏻♂️🤦🏻♂️
Southwest isn’t low cost sir
Tax airfuel!
No
What are this Airlines? Never Heard of them
Did anyone notice that the video ABOUT PLANES is 9 minutes and 11 seconds long. I know it might just be a mistake but TLDR thats pretty shocking 9 days after the 23rd year since the tragedy.
A 9:11 long video about airplanes ?
pos 🇺🇸
he’s a *****
I'm fairly certain it's a coincidence. History is full of them. 🙃
But these are American companies, so their loss isn't important.
2:33 just nitpicking but thats Stansted not southend
This video is 9:11 long 🤔
that’s the kind of guy he is apparently
@Matthew.M.S. Seriously? Wow. I suppose that the idea that it was a coincidence is unfathomable to some. Bear in mind too that Europeans may not even refer to this as 9-11. I'm European and in my country, we say "11 of September". The content creator certainly doesn't sound American so I'm pretty certain he may not even have made that connection. Regardless, it's a pretty disgusting insinuation to make as if the creator WILFULLY had the video at 9 minutes and 11 seconds to... what... rage bait?
@@MissWhiskerspeople here in the UK (where he's from) refer to that day as 9/11. He (or the person that edited the video) knows exactly what 9/11 is.
@@vkdrk Fair point. Most of us know what 9-11 is but we might not always make the immediate connection. It should also be noted that when you search for the video, the time actually says 9 minutes and 12 seconds but when you click it, it's one second shorter. At least it does for me. And I really do believe it was a slip-up and not intentional.