Over the past two decades, low-cost carriers (LCCs) have experienced rapid global growth in both number and capacity. This expansion has been fueled by factors such as the deregulation and liberalization of airspace along with a rising demand for affordable travel particularly among the growing middle class which has made flying more accessible than ever before.
By offering significantly lower fares through cost-efficient operations LCCs have reshaped the aviation landscape. They have disrupted traditional airline structures, compelling legacy carriers to adapt, innovate, and redefine their service models. However, differences in market structure, demand, competition, airport costs and network design can significantly influence the revenue models and operational costs of LCCs depending on the regions in which they operate.
This article aims to examine and compare seat capacity and fare levels of major low-cost carriers (LCCs) in Europe and the United States. Drawing on APEX schedule and fare data, it explores the penetration of the LCC business model in each market and highlights differences in pricing strategies across regions. For consistency, European LCCs operating long-haul routes with widebody aircraft have been excluded from the analysis, focusing solely on narrowbody operators.
Findings
LCC Market Penetration
As shown in Chart 1 there are two clear leaders in seat capacity in both markets: Southwest Airlines in the U.S. and Ryanair in Europe. Southwest’s seat capacity is over 300% higher than that of the second-largest U.S. low-cost carrier (LCC), Spirit Airlines
In contrast, the European market shows a more balanced distribution between Ryanair and easyJet, which ranks second in seat capacity. Ryanair operates with 104% more seat capacity than easyJet — just over double the volume.
Chart 1: LCCs Seat Capacity in Europe and the USA (2024) — Datawrapper
Chart 2 highlights market penetration, showing that European LCCs hold a stronger position, accounting for 21.12% of total seat capacity in Europe. In comparison, U.S. LCCs had a market share of just under 15% in 2024. However, during the first half of 2024 (H1), U.S. LCCs reached a slightly higher share of 17%, indicating a decline in the second half of the year.
This drop can be attributed to Spirit Airlines’ network restructuring following its Chapter 11 filing in November 2024, which led to reduced capacity in less profitable markets as discussed in detail in our February article, “Spirit Airlines: Profitability and Future Strategy” Spirit experienced a 4% decline in seat capacity in H2 2024 compared to H1 2024, followed by a deeper 19% drop in H1 2025 as shown in Chart 3
Chart 2: Share of Total Capacity Operated by LCCs — Datawrapper
Chart 3 also shows a decline for Southwest Airlines. As the largest LCC in the U.S. market, Southwest has faced profitability challenges in recent years, prompting operational changes that appear to be reflected in its reduced seat capacity. The airline recorded a -3% decline in H1 2025 following a -1% drop in H2 2024. Additionally, three other major U.S. LCCs reported declines in H1 2025, reinforcing the trend of overall reduced capacity among low-cost carriers in the U.S. market.
On the other hand, newer U.S. LCCs such as Avelo and Breeze have shown significant growth in seat capacity during H1 2025. Their expansion has helped offset the overall decline among other LCCs, resulting in a relatively stable low-cost market share when comparing H1 2024 and H1 2025
In Europe, the trend is notably different. There has been clear growth in seat capacity, especially during H2 2024, which includes the peak summer travel season. This reflects the strong demand for low-cost travel in the region. Even during the winter months of 2025 included in H1 2025 there was no reduction in capacity—in fact, there was an increase compared to the same period in H1 2024 for all European operators.
Chart 3: LCCs Seat Capacity Change — Datawrapper
Fare levels
In 2024 the average fare for U.S. LCCs was 117.50 USD reflecting a slight 1% decrease compared to 2023. Meanwhile, the European market experienced a sharper decline of 4% with the average fare dropping to 88.33 USD. This steeper reduction is likely driven by the higher capacity of LCCs in Europe, which—as shown in Chart 1—is 38% greater than in the U.S. This increased capacity has led to greater competition, contributing to downward pressure on fares across the European market.
This trend is further supported by the fact that most European airlines saw a decline in average fare, with the exceptions of Wizz Air and Volotea. Notably, easyJet ranks among the three airlines with the sharpest fare reductions in 2024 as shown in Table 1
Table 1: LCCs Average Fares (USD) and Year on Year Variations — Datawrapper
As Table 2 shows, the airline with the highest average fare in 2024 was JetBlue at USD 164. JetBlue also recorded the highest average sector length, 2,340 km largely driven by its position as the only low-cost carrier operating transatlantic flights with narrow-body aircraft from the U.S. East Coast to Europe. This network profile also makes JetBlue the airline with the highest average fares on routes between 4,000 and 6,500 km which represents the typical maximum range flown by U.S. and European LCCs.
In second place was Southwest with an average fare of USD 154. Southwest consistently maintained fares above USD 100 across all segment types and had the second-highest average fare on long-haul routes, after JetBlue.
Notably, three European airlines rank among the top five for highest average fares. Two of them — Eurowings and Transavia — are subsidiaries of major European airline groups, Lufthansa Group and Air France-KLM, respectively. Meanwhile, Vueling part of IAG, ranks below easyJet, with an average fare of just USD 90
At the other end of the spectrum, Ryanair offered the lowest average fare, USD 62 — around 14% lower than the second-lowest fare in Europe (Wizz Air) and 34% lower than easyJet its closest competitor in the region.
In the U.S., two relatively new entrants — Breeze and Avelo — also offered average fares below USD 100 (USD 80 and USD 67 respectively). Coupled with their expansion in the North American market, this positions them as strong options for price-sensitive travellers.
Table 2: Average Sector Length and Average Fare (USD) by Airline — Datawrapper
Conclusion
European and U.S. low-cost carriers highlights two distinct market dynamics. Europe continues to demonstrate stronger LCC penetration supported by steady growth in seat capacity and sustained demand for affordable travel. This competitive environment has driven fares lower, with Ryanair setting the benchmark as the lowest-cost operator. In contrast, the U.S market is marked by recent capacity reductions among established carriers such as Southwest and Spirit although new entrants like Breeze and Avelo are gradually reshaping the landscape with competitive fares and targeted expansion.
Fare structures also differ significantly. U.S carriers such as JetBlue and Southwest maintain relatively high average fares influenced by longer sector lengths. Meanwhile European LCCs compete in a more saturated environment where high capacity and intense competition among major groups exert downward pressure on fares
This comparison makes clear that while Europe remains the global leader in low-cost travel penetration, the U.S. market is undergoing transition. The success of emerging carriers and the response of incumbents will be decisive in shaping the competitive balance and fare levels in the years ahead.
Banner image by Lucas Davies on Unsplash
