A profitability analysis of low-cost long-haul flight operations

Abstract

The profitable adaptation of the low-cost carrier model to long-haul flight operations is still subject to intensive discussion. We conduct a founded route profitability analysis for operational scenarios of low cost, long-haul services that includes a systematical evaluation of potential revenue sources. Our results suggest that regular low cost, long-haul operations are possible if the traditional full-service carrier product is effectively unbundled and suitable trunk routes can be identified.