Abstract
The purpose of this study is to analyze the relationship between service failure, service recovery, and loyalty for Low Cost Carrier travelers. This study also examines the mediating effects of service recovery between service failure and loyalty through travelers' perceived satisfaction. The study reveals that service recovery has a positive effect on attitude and behavior loyalty, while service failure has a positive effect on service recovery. The empirical analysis shows that both apology and compensation have only a partial mediating effect between delivery failure, and attitude loyalty and behavior loyalty separately. Practical implications of the findings for Low Cost Carrier services are discussed.
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