RSS
Follow by Email
Twitter
Visit Us
Follow Me

Long haul flights are where budget airlines lose money.

Many budget airlines have tried their luck with long haul flights over the years. And very few have had such with long haul flights. This is my personal opinion on why they fail to make these flights profitable.

Norwegian recently gave up most of their long haul flights. Air Asia did the same a while ago. Wow Air from Iceland closed down recently. And there has been many of these cases over the years. While budget airlines have thrived in selling short haul flights. They have mostly failed when it came to selling long haul flights. Why is it so?

People want comfort on long haul flights.

One very obvious reason is that many people, including myself, want a certain comfort when flying long haul. This is especially true for frequent fliers. And frequent fliers are the most important people for airlines. You tend to have less seat space on budget flights. That is ok for a 2 hour flight. But if you are flying for 10-12 hours, then it’s a different matter. I do personally not want to be cramped in to a small seat for +7 hours. It will drive me insane with claustrophobia and make an irritable passenger. I also like when I have free food and drinks on long haul flights. Including alcohol. This is still possible on many flights by the way. I’m a frequent flier on Qatar Airways for instance. And they do serve some excellent free wine on their flights.

Qatar Airways.

On a long haul flight I want comfort. Like what you get with Qatar Airways.

The affiliate sales are not higher on long haul flights.

One aspect that many people do not think of when talking about how budget airlines make money, is affiliated sales. Whenever you book a flight, you will always be asked on whether you would like to book a hotel too. Or maybe rent a car. Or book an excursion and so on. It’s not just on baggage fees and travel insurance that budget airlines make extra money.

When you book a hotel or rent a car, through the airline website, the airline get’’s a commission. Typically between 10% and 35%, depending on what you are booking. And people will often spend hundreds og Euro’s on these things. This is why airlines can sometimes sell insanely cheap tickets.

But people tend to spend roughly the same amount of money on these things, whether they book a 2 hour flight or a 10 hour flight. But fuel and labour costs are of course higher for a 10 hour flight. And that makes it harder to earn enough extra cash, to cover the loss they have from selling under priced tickets.

Air Asia

Air Asia is great. But they had no success with long haul flights.

Now this was my 5 cents about why budget airlines tend to lose money on long haul flights. Feel free to agree or disagree. The comment box is there just for that reason.

Flying

Happy flying.

Happy flying :-).

RSS
Follow by Email
Twitter
Visit Us
Follow Me

Leave a Reply

Your email address will not be published. Required fields are marked *