Revenue characteristics of long-haul low cost carriers (LCCs) and differences to full-service network carriers (FSNCs)

Christian Soyk, Jürgen Ringbeck and Stefan Spinler

Transportation Research Part E: Logistics and Transportation Review, 2018, vol. 112, issue C, 47-65

Abstract: Low cost carriers (LCC) have smaller cost advantages on the long- than on the short-haul compared to network carriers (FSNCs). Hence, revenue competitiveness is critical. To evaluate long-haul LCC performance, this paper contributes a new metric for bench-marking the revenue per equivalent flight capacity. Second, a revenue model combining traffic, fare, load factor, and seat data is developed. Third, the revenue per flight capacity is evaluated across selected city-pairs. Long-haul LCCs earn revenue per flight capacity comparable to FSNCs. Lower direct yields compensated by fewer low-yield connecting passengers and significantly more passengers per aircraft have been identified as key factors.

Keywords: Airlines; Revenue; Point-to-point; Long-haul; Low cost (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (12)

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DOI: 10.1016/j.tre.2018.02.002

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