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It is often challenging for new airlines to establish themselves in a market dominated by major players such as Delta Air Lines, American Airlines, United Airlines, and Southwest Airlines. However, low-cost and ultra-low-cost carriers have begun to carve out a significant portion of the US airline market share. In 2021, Breeze Airways and Avelo Airlines entered the scene as startup airlines aiming to fill niches overlooked by larger legacy carriers.
These startups are focusing on smaller regional airports rather than competing directly with established airlines at large hubs. As noted by the New York Times, "Aviation is unforgiving. Competition is fierce, the barriers to entry are high and success is fragile." Despite these challenges, low-cost carriers have increased their global share since the pandemic.
Breeze Airways operates a fleet of Airbus A220-300s and Embraer 190/195s while offering some additional amenities despite being a low-cost airline. Avelo Airlines flies Boeing 737s and began operations under its current name in April 2021 after transitioning from charter flights. Both airlines focus on non-stop flights between destinations not typically connected by traditional hub-and-spoke models.
