The End of Low-Cost Fundamentalism: The COVID Interruption - Teaching Note

  • Reference: MT-54-E

  • Year: 2020

  • Number of pages: 23

  • Publication Date: May 25, 2021

  • Source: IESE (España)

  • Type of Document: Teaching Note

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Description

We review pre-COVID-19 trends, discuss the pandemic's main impact on existing models, and provide the likely new post-COVID-19 trends in the airline sector. However, the fundamentals of the democratization of air travel, particularly in the short-haul segments, are left untouched. After a "short" interruption, it will remain a cost-based game in which high return, agile, low-cost carriers compete with typically less-profitable network airlines that leverage their long-haul network and loyalty platforms.

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Keywords

airlines aviation carriers COVID low-cost Travel Industry