In 2013, Europe’s two largest low-cost carriers, Ryanair and easyJet, were having an annus horribilis. EasyJet’s executives were battling its founder and biggest shareholder, Stelios Haji-Ioannou, over the airline’s strategy. Ryanair issued two profit warnings, its first in ten years. Three years on, things look better. The two—which make up 47% of the low-cost market in Europe— are expected in the coming days to reveal strong results for the October-December quarter.
Both airlines say this success is a result of making their flights more attractive to businesspeople. Previously, their customers were mainly price-conscious holidaymakers who did not mind an uncomfortable flight as long as it was cheap. The big untapped market, easyJet and Ryanair’s bosses twigged, was the short-haul business market, which was still dominated by pricey full-service airlines.
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Source Credits: The Economist