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Impacts of LCC growth on domestic traffic and fares at largest US airports

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  • Ben Abda, Mehdi
  • Belobaba, Peter P.
  • Swelbar, William S.

Abstract

This paper examines the evolution of domestic origin-destination air traffic and fares at the top 200 airports in the US between 1990 and 2008, with a focus on the impacts of low-cost carrier entry and growth. By 2008, 95 of the airports had an aggregate low-cost carrier market share of domestic traffic greater than 20%, up from 27 airports in 1990. Their entry or substantial growth at US airports has had significant impacts on lowering average fares and stimulating passenger volumes. This market stimulation effect has, however, diminished in recent years, as the difference in average fares between carrier types has narrowed and as the number of additional US domestic origin-destination markets able to support their entry has dwindled.

Suggested Citation

  • Ben Abda, Mehdi & Belobaba, Peter P. & Swelbar, William S., 2012. "Impacts of LCC growth on domestic traffic and fares at largest US airports," Journal of Air Transport Management, Elsevier, vol. 18(1), pages 21-25.
    • Handle: RePEc:eee:jaitra:v:18:y:2012:i:1:p:21-25
    DOI: 10.1016/j.jairtraman.2011.07.001
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    References listed on IDEAS

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