It's The End of Cheap Flying as Americans Tire of Budget Airlines
High costs, more competition upend business models at no-frills brands
The Frontier Airlines check in at Hartsfield-Jackson Atlanta International Airport.
Photographer: Dustin Chambers/BloombergTakeaways NEW
It may seem like a worsening economy would be a boon for ultra-budget carriers, but in reality it's the opposite. People who can't afford to fly don't really trade down, they just stop flying — leaving mostly those traveling for business, internationally or on loyalty points, up for grabs.
That comes as the industry has undergone a big shift: Lower-cost airlines such as Spirit and Frontier have sought to go more upscale, and full-service carriers like Delta Air Lines Inc. and United Airlines Holdings Inc. have broadened their range to capture budget-minded travelers. JetBlue Airways Corp. has sought to offer lower fares but with a more upscale ambiance such as vegan leather seats and self-serve snacks.