Why Low-Cost Carriers Are Rapidly Redrawing Europe's Aviation Map

Low-cost carriers (LCCs) are quickly gaining ground over conventional airlines. This trend is reshaping the European air transport map and the global industry. The shift confirms a steady demand for more flexible and economical travel models.

Consumers are increasingly sensitive to cost issues. It is now common to choose a travel destination based on the available fare. This focus on budget travel demand is a key driver for the LCC sector's expansion.

Global and European Market Dynamics

Today, traditional airlines and LCCs together account for 70% of total global traffic. Each segment holds an approximate 35% market share of that total.

However, the balance is shifting post-pandemic. Compared to 2019, traditional airlines show a small but important decline. Their share has dropped one percentage point from 36% before the pandemic.

At the same time, LCCs have significantly strengthened their position. They have increased their share by four percentage points since 2019. The LCC segment represented 31% of the European market before the pandemic.

In Europe, the top dozen LCC brands grew by 8.3% year-on-year in 2024. This growth outpaced the top 12 non-LCCs, which grew by 6.8%. Overall, LCCs were up 17% compared to 2019, showing superior recovery.

Airline Group Competitive Strategy

It is no coincidence that major airline groups are adapting their strategies. More large groups are choosing to either acquire or develop a low-cost version. This is necessary to remain competitive and align with the dominant industry trends.

• IAG continues to leverage its LCC, Vueling, which has grown its market share.
• Air France-KLM Group has seen its low-cost carrier, Transavia, also grow its market presence.
• The Lufthansa Group has a stake in SunExpress, which saw capacity grow by nearly 50%.

These subsidiaries allow large carriers to compete directly on short-haul routes. They also protect the premium services of the main brand.

Greece: A Case Study in LCC Dominance

The trend of low-cost carriers gaining ground is clearly visible in the Greek market. The Greece LCC market was valued at USD 941.34 million in 2024. It is projected to grow at a Compound Annual Growth Rate (CAGR) of 15.8%.

Athens International Airport (AIA) Traffic

At Athens International Airport, the LCC presence is notable behind the two domestic leaders. Aegean holds a 44% share, followed by Sky Express at 20%.

The following airlines are all low-cost carriers, according to reported figures:

• Ryanair holds a 4.5% share.
• easyJet holds a 2.7% share.
• Wizz Air holds a 1.8% share.

Cumulatively, these three LCCs account for approximately 8% of AIA traffic. By comparison, major traditional full-service airlines like Lufthansa (1.9%), British Airways (1.4%), Swiss (1.4%), Turkish Airlines (1.1%), and ITA Airways (1%) hold a combined total of 6.8%.

Fraport Greece Regional Airports

The superiority of LCCs is even more evident at the 14 regional airports. These airports are managed by Fraport Greece and cater heavily to leisure travel.

In the total air transport mix at these regional hubs, LCCs occupy 39% of traffic. Traditional full-service carriers account for 31%. Tour operators make up the remaining 30%.

LCCs nearly monopolize the top five largest players at these airports:

• Ryanair is in first place with a 17% share.
• Domestic carrier Aegean follows with 16%.
• easyJet holds 9%.
• TUI holds 8%.
• Jet2.com holds 6%.

This pattern highlights the LCC model's effectiveness in high-volume, leisure-focused markets. The continued expansion of LCCs, often using efficient fleets of Airbus and Boeing narrowbody aircraft, is a major focus for global commercial aviation news.

Industry Outlook

The growth of LCCs presents both challenges and opportunities. For airports, LCCs bring high passenger volumes and new routes. For legacy carriers, the pressure to cut costs remains intense. Industry bodies like IATA continue to monitor the shifting landscape. The LCC focus on ancillary revenue streams is a key factor in their profitability. This model allows them to offer lower base fares.

This trend confirms that affordability is a primary driver for post-pandemic air travel. The LCC model is now a permanent and dominant feature of the global aviation industry.