How Do Budget Airlines Make Money?

In the past few years, the low-cost airline industry has been booming. These airlines offer the same service as the major carriers, but without the frills. Yet the gap in price between a low-cost ticket and a full cost ticket can be enormous. How do they do it?

On a low-cost flight, you will get no free meals, no free beverages and smaller seats. Everything is cost-effective (meaning cheap), from the flight attendants' outfits to the soap in the restrooms.

By having one type of aircraft and one passenger class, they keep their training costs down. Staff are multitaskers; the girl at the check-in counter might also be the flight attendant serving you drinks (which you have to pay for).

These airlines get the most out of their aircraft. Turnaround times are fast and smaller airports are chosen over larger ones. The smaller the airport, the faster you get in and out and the less chance of delays. They will get you on the plane as quickly as possible, not wasting time with reserved seats. Low-cost airlines do not believe in transit points. They fly direct from one destination to another. If they cannot fly there directly, they will not fly there at all.