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"Low cost" lines change the travel model, no more free seats and removal of flight cancellation fees

2024-08-12 10:32:17Lifestyle SHKRUAR NGA REDAKSIA VOX

Low-cost airlines are changing their business plans, testing new policies and strategies as rising costs erode their balance sheets. US low-cost airline Southwest Airlines announced that it is ending the empty seat policy it has followed for the past 50 years. This policy allows passengers to choose their seats when boarding, a reason why it has always been characterized as the 'people's airline'. Southwest will now assign a separate seat to each passenger, allowing it to charge more for seats with more legroom or other perks.

This change was expected, but still impressive, as it was the last American low-cost company that had not yet succumbed to the trends of its competitors. It is further evidence of pressure on the industry from higher labor costs, fuel prices and oversupply. Despite growing demand for travel, airlines like Southwest are struggling with shrinking profitability and looking for alternatives.

In this context, low-cost airlines are making major policy changes as they try to increase revenue and adapt to new traveler preferences without alienating customers. For example, US low-cost carriers Frontier Airline and Spirit Airlines removed cancellation or change fees, which brought in some revenue but caused a strong backlash from their customers.

A few weeks ago, Spirit warned of falling revenue, arguing that fewer customers are buying its extra perks, such as carry-on bags or in-flight refreshments, that are critical to its low-cost business model. Also typical is the example of the low-cost airline JetBlue, which now charges up to $50 for preferred seats on the plane, which are in the window and in the aisle at the front of the economy class.

Finally, Frontier recently added business seats, where the middle seat is empty, to attract customers willing to pay a little more.


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