Even in 2024, low-cost airlines continue to dominate European skies, boasting market shares that would like to have those defined as the “majors” of air transport just a decade ago.
Cirium Research, an aviation industry analysis company, confirms that tariffs have dropped 6% in recent months, and there is a concerning shortage of air supply. This shortage is attributed to Airbus and Boeing’s considerable slowdown in new aircraft deliveries.
As a result, financial performance is suffering, with declining revenues impacting the stock market performance of European airlines, which continues to fluctuate compared to their North American counterparts. However, the analysis of market shares is particularly intriguing, as it highlights the overwhelming dominance of low-cost airlines, which hold over 60% of the overall market share. Ryanair leads with a 31% share in European airspace, followed by easyJet at 15% and Wizz Air at 8%. Vueling trails with a 6% share.
All flag carriers have market shares below 5%, with Lufthansa at 4.8%, British Airways at 3.9%, Air France-KLM below 2.5%, and Ita Airways at 2%. On a positive note, analysts point out that the European skies market has strong growth potential and is projected to expand significantly by 2030. This growth is expected to be driven by an increasing supply of airline seats and the opening of new routes from emerging countries, such as Azerbaijan, Kazakhstan, and the United Arab Emirates.
With the upcoming Christmas holidays approaching, a significant increase in flight capacity is anticipated in European skies. In Spain, 800,000 seats will be available for sale, while Italy and the United Kingdom will each offer around 300,000 seats.
In terms of pricing, a slight rise in fares is expected following a decline this year, during which the average flight ticket price dropped to 97 euros, compared to 101 euros last year.
As a result, nearly all airlines are adopting a strategy focused on ancillary services, often implementing price increases that have sparked considerable controversy among consumers. Experts point out that, for most airlines, ticket sales now account for only 55% of total revenue, with the rest coming from services such as checked luggage, seat selections, and increasingly expensive onboard meals. This trend has also led to rising dissatisfaction among tour operators.
