how do the cheap airlines make money?

Answer 1

Quite simply, by operating at a lower cost than the major airlines. This is accomplished by:

- Paying lower wages
- Hiring non-union employees whenever possible
- Substituting 401K plans for defined-benefit pensions
- Keeping services simple (no meals, blankets, etc.)
- Operating only 1 or 2 aircraft types (keeps training and maintenance costs low)
- Charging fees for services that major carriers offer for free
- Relying on less expensive methods of marketing and ticket sales
- Operating into airports that have lower landing and gate fees
- Offering less generous loyalty programs

These days, it's getting harder for low-cost carriers to undercut the majors, since the majors have shed lots of costs during bankruptcy reorganization. United, Delta and American are dumping their pension programs on us, the taxpayers, and the bankruptcy courts are allowing it. Higher fuel costs have hit everyone hard, too. Southwest has benefited from low cost fuel because they hedged a large portion of their fuel over the past several years. As those contracts expire, they will be forced to purchase fuel at higher cost.

Answer 2

They make their money by having a quick turn around time for planes at the airport, no delays means no extra cost at the airport. Staff can do more flights in one shift, etc. They use junior pilots which are cheaper to hire too.

The aiport tax actually goes to the airport owners not the airline.

Answer 3

By sheer volume of the people booking, faster turn around times so that the aircraft don't spend so long on the ground, thus cutting airport fees and taxes, lower salaries for their staff, good budgeting by the Management and good cost cutting practices.

Answer 4

the airline I worked for paid crap-pilots made about 9-12 hr for a first officer ,ramp agents made around 8-9 hr.

Answer 5

A combination of quick turnaround in limited markets, limited staffing and service, and (as most all airlines do) sale of cargo space.

Answer 6

lots of people fly on that airline

Answer 7

High turn over and avg service, and giveing people just enoph to make things good enouph

but Southwest is good

Answer 8

They strip it of everything so its basically a shell with seats in. On some you also have to run up the runway like fred flintstone did with his car!

Answer 9

Because many people travel by using them so the number of people compensates the costs!

Answer 10

On the hidden tax costs that aren't mentioned when they're advertising cheap flights