Differences between low-cost and ultra-low-cost airline models explained

Ultra-low-cost carriers aimed to significantly undercut prices offered by full-service network carriers, including those like Southwest. Spirit Airlines and Allegiant Air are known for their no-frills approach where passengers pay for most onboard services. According to the National Air Carrier Association, about a third of passengers choose not to purchase additional services.

Both low-cost and ultra-low-cost carriers continue to exist today, serving different roles and attracting diverse traveler groups. They have different network structures; low-cost airlines often operate hub-and-spoke networks at leisure destinations or secondary facilities in major cities. In contrast, ultra-low-cost carriers follow a point-to-point route model with numerous operating bases despite being smaller in size.

The passenger experience varies significantly between these airline types. Ultra-low-cost carriers charge for nearly everything onboard, affecting customer satisfaction but essential for their revenue model as noted by FlightRadar24. Low-cost carriers generally offer more inflight perks such as free snacks or Wi-Fi.

Investment in loyalty programs also differentiates these airline models. Southwest and JetBlue have robust loyalty programs that foster strong customer relationships despite cheaper alternatives elsewhere. For ultra-low-cost airlines, loyalty programs hold less appeal due to their focus on offering lower prices over customer retention incentives.