How low cost flight companies manage to keep prices low
They buy planes in bunches, getting discounts. Ryanair once bought 151 planes together.
They upgrade planes more often, new planes are cheaper to run (less fuel consumption)
They buy the same plane models, saving money in training stuff for different type of planes
They don’t use reclining seats, as they tend to break more often
No pockets in seats, so less time spent in cleaning them
They avoid big and expensive airports (e.g. Ryanair only uses Stansted and Luton in London)
They tend to use small airports and be the major companies working there, in order to have more power of negotiation with fees
The same planes does multiple routes on the same day, with breaks of only 30-45 minutes between flights. The delays of course are more frequents than other flight companies
No flight connections, too complicate with tickets and baggages and refund for delays
They only use stairs to board people, cheaper than tunnels
The open new routes and steal clients from other popular expensive routes
Profit margin very high: Ryanair 24%, EasyJet and Wizzair around 10%, Lufthansa, BritishAirways, AirFrance only 2-7%.
Big companies created their own low cost, but they failed because they couldn’t compete with the economy of scale of other companies
On a flight costing £40 for the client, the average client buys £13 of food, resulting into a £51 income for each client. The cost of the flight per client is £45 (half of which is the fuel, and other half the staff, cost of plane, airport fees). That means the earning is around 6£ per flight.