Low-Cost Carriers and the European Airline Industry

Timur Gavriljuk

Bachelor's thesis

Abstract:

This thesis delves into the impact of low-cost carriers (LCCs) on the European airline industry, employing a quantitative comparison with traditional carriers. Utilizing regression models and time series analyses, the study examines key operational strategies like average flight distance, fleet composition, and ancillary fee structures. It then delves into financial performance, identifying key variables influencing passenger numbers and profit margins, such as ticket pricing strategies, operational efficiency, and fuel costs. Additionally, the study explores broader implications for passengers, including changes in travel patterns and accessibility, as well as environmental concerns surrounding LCC operations. The analysis reveals significant differences between LCCs and traditional airlines in terms of their approaches to these aspects, offering valuable insights into the competitive dynamics of the industry.

Keywords

airline, economy, business model, performance, profit margin, passengers, statistical analysis, time series, Europe

Language used: English

Date on which the thesis was submitted / produced: 15. 3. 2024

Thesis defence

• Supervisor: Ing. Tomáš Hlavsa, Ph.D.
• Reader: Zuzana Pacáková, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Economics and Management