Research Insights LCCs gain an edge in APAC air market

LCCs gain an edge in APAC air market

March 2023
Phocuswright Research

With revenue of $10.6 billion in 2021 (see figure below), low-cost carriers (LCCs) comprised 15% of the total APAC air market. Though all airlines suffered greatly due to the pandemic, LCCs' low-cost base and quicker turnaround times will provide an edge in recovery.

Phocuswright Chart: APAC Airline Gross Bookings By Channel Online Penetration
(Click image to view a larger version.)

In the great recovery since 2022, short-haul international travel has been the first to return, benefiting LCCs. As a result, their share of the air market rose to 19% in 2022. As long-haul flights scale up and traditional airlines adopt aggressive customer acquisition strategies, including price competitiveness, full-service carriers (FSCs) will regain some of the lost share by 2025. The projected full-service carriers' revenue in 2025 will still be 5% short of 2019 volumes, whereas LCC gross bookings will be 3% higher than in 2019.

Related: See why APAC is expected to regain top spot as the world's largest regional travel market by 2025

For this report series, 12 markets comprise the Asia Pacific travel market: Australia-New Zealand, China, India, Japan, Northeast Asia (including Hong Kong, Macau, South Korea and Taiwan) and Southeast Asia (including Indonesia, Malaysia, Singapore and Thailand). Collectively, the series provides comprehensive market sizing and projections for the Asia Pacific travel industry from 2019-2025, including analysis of key segments, country-level share and trends, distribution dynamics and more.

Other reports in the Asia Pacific Travel Market Report 2021-2025 series:

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