Budget Airlines Struggle Amid US Travel Demand Decline

Reported about 21 hours ago

As US travel demand plummets due to economic uncertainties, budget airlines like Southwest, Frontier, and JetBlue are facing significant operating margin declines, while full-service carriers such as Delta and United manage to maintain stability by appealing to high-end travelers. This shift marks a departure from past trends where budget airlines often thrived during downturns. With increased focus on customer loyalty and premium offerings, legacy airlines are set to surpass low-cost carriers in profitability, as the latter grapple with a weak domestic market and reduced profitability post-pandemic.

Source: YAHOO

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