Cancun — Low-cost, long-haul air travel has taken off across the Atlantic, shaking a club of major airlines meeting in Mexico this week and forcing established flag carriers to set up budget subsidiaries or lower fares. Transatlantic routes are among the industry’s most popular and profitable, and budget carriers are trying to grab a slice of that business by boosting capacity on them by 68% this summer, according to data from air travel intelligence company OAG. A looming fare war has gained fresh momentum from lightweight new aircraft with fresh, appealing interiors that help to keep costs down. Norwegian Air Shuttle and Icelandic rival Wow have grabbed headlines with fares as low as $69 and $55 this summer, although Wow’s flights involve a stop in Reykjavik. Legacy carriers are not idly standing by, and executives at the International Air Transport Association meeting in Cancun, Mexico, said in interviews they were confident their plans to offer low-cost long-haul flights would s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.