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Spirit, Frontier and Allegiant: ULCC sector nearing 10% market share in the US — October 2018

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The Ryanair-style ultra-low cost carrier (ULCC) business model continues to gain traction in the US. According to Cowen and Company, the three airlines in that sector — Spirit, Frontier and Allegiant — are on track to achieve a combined domestic market share of 10% by 2020, up from 4.3% in 2013 and 8% currently.

Compared to Europe, the ULCC business model had a late start in the US, where low-cost pioneer Southwest and up-market LCCs such as JetBlue have dominated the scene. If Southwest is included the LCC/ULCC share is around 29%.

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