Everyone is familiar by now with the low-cost carrier success stories: Ryanair, Southwest, easyJet, Wizz Air, and others with similar models are among the most profitable in the industry.
But low-cost doesn’t necessarily equal high-profit. It’s a tale of two types of flights: short-haul, which is a moneymaker for budget airlines, and long-haul, which has been a big loser.
This episode of the Skift Podcast explores the next big challenge for low-cost airlines: how to make long-haul flights make money.
This podcast was also our opportunity to showcase a new addition to the Skift family, the 14-year-old newsletter Airline Weekly. Seth Kaplan, the publication’s editor, joined Skift Senior Aviation Business Editor Brian Sumers to tackle the low-cost question.
They discussed the reasons low-cost short-haul flights are so profitable, and why that success doesn’t often translate to longer routes. They also dug into which budget airlines might try long-haul next — and who definitely will not.
We at Skift are all about disruptors in the travel industry, and today we have an interview with an executive who has been shaking up the airline industry with his long-haul, low-cost strategy.
Norwegian Air has been making headlines over its inexpensive transatlantic flights, its strategy of using airports in smaller markets instead of large international hubs, and its plans to expand to Argentina.
Bjorn Kjos, the CEO of Norwegian Air, was a speaker recently at the first Skift Forum Europe. He also spoke to me, editor and podcast host Hannah Sampson, behind the scenes in the Skift Take Studio.