It may seem like a worsening economy would be a boon for ultra-budget carriers, but in reality it’s the opposite. People who can’t afford to fly don’t really trade down, they just stop flying — leaving mostly those traveling for business, internationally or on loyalty points, up for grabs.
That comes as the industry has undergone a big shift: Lower-cost airlines such as Spirit and Frontier have sought to go more upscale, and full-service carriers like Delta Air Lines Inc. and United Airlines Holdings Inc. have broadened their range to capture budget-minded travelers. JetBlue Airways Corp. has sought to offer lower fares but with a more upscale ambiance such as vegan leather seats and self-serve snacks.
Demand for domestic leisure travel — the bread and butter for low-cost carriers — is rapidly evaporating as President Donald Trump’s trade war rattles consumer confidence. It’s thrown airlines’ hopes for a banner year and higher ticket prices out the window, and with it, an expected tailwind for discount carriers retooling their offerings.
Most US airlines have withdrawn their full-year earnings forecasts.
Even as more passengers look for bargains, it’s discount carriers that stand to be hit hardest from the downturn ripping through the aviation industry.
“I am honestly just done with them overall for our major family trips,” said Jim Wahlen, a 42-year-old who works in commercial property maintenance. “I have flown Spirit, Frontier, and Allegiant in the past and it is always just stressful on what they are going to charge you for and when.”
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
