Rapid expansion of low-cost airlines

"As the forerunner of bargain air tickets, the range of flights offered by Ryanair has consolidated in second place in the ranking of low-cost carriers in Germany, offering a record number of 243 routes," says lead investigator Peter Berster from the DLR Institute of Air Transport and Airport Research in Cologne. “The Irish airline recorded more than 50 new routes departing Germany, compared to last year,” Berster continues. "Ahead by some distance is Eurowings/Germanwings, which offers 368 different routes within and from Germany, and has included around 50 new routes in its flight schedule, whereby Eurowings also operates a number of Lufthansa connections departing from Munich." EasyJet offers around 90 routes, while Wizz has 73. Overall, a significant growth of 14.8 percent from 700 to 802 routes was recorded in low-cost air transport departing from Germany. Passengers flying to destinations in Spain, Italy or Greece, in particular, benefit from this development. The low-cost segment now accounts for 25 percent of air transport from German airports.

"The prices offered by low-cost carriers have continued to fall compared to last year due to the persistently fast-moving market," explains Berster. "This autumn, the identified price range fell to its lowest level to between 35 and 97 euro, after 40 to 105 euros in autumn 2016 and 45 to 115 euros in autumn 2015.” The reviewed prices remain low due to the continued availability of inexpensive kerosene and sustained competition with more than one low-cost carrier on now almost 100 routes departing Germany. Despite increasing their presence at major airports once again, Ryanair and Wizz have lowered their prices compared to last year and hence increased the trend toward falling ticket prices," says Berster. "How the takeover of Air Berlin will affect price development in the upcoming winter season remains to be seen." The quoted price range reflects the gross average ticket price for a representative selection of routes serviced by the most significant low-cost airlines in Germany, namely Eurowings/Germanwings, Ryanair, EasyJet and Wizz. The Low Cost Monitor determines the average prices based on a variety of advance booking periods, ranging from one day to three months.

Norwegian and Eurowings are investing significantly in expanding their range of low-cost air tickets in the long-haul segment. The Scandinavian low-cost carrier even doubled its number of intercontinental flights compared to last year, targeting passengers accustomed to travelling with the classic alliance airlines from major airports in London, Paris, Copenhagen and Stockholm. Modern, smaller aircraft are now also being deployed to service secondary airports on both sides of the Atlantic, including Edinburgh in Europe or Providence in the United States. Eurowings joined the market in November 2015, offering flights to Asia and America. Until now, it has operated low-cost flights from Cologne/Bonn Airport without competition. Moreover, Eurowings plans to service destinations in the Caribbean when it takes over Air Berlin’s long-haul flights from Dusseldorf in November 2017.