CASK: Europe's Full Service Airlines have the world's highest costs, US airlines the lowest

In the Americas there is a narrower CASK gap between FSCs and LCCs than elsewhere. This has created an opening for the development of the region's ultra-LCCs, particularly in the US. Europe is, on average, home to the highest-cost FSCs in the world, in spite of some cost-efficient FSCs that are close to LCC territory. Europe also has some ultra-LCCs, with even lower unit costs than in the US. The Asia Pacific & Middle East region has perhaps the greatest diversity of CASK levels, reflecting its range of business models and its combination of developed and emerging markets.

For all airlines and all markets, CASK reduction - or, at least having the most efficient level of CASK for the chosen business model - is crucial. The long-term history of the global airline industry is one of falling unit revenue in real terms. The only way that the industry has ever made a positive margin has been through lowering its CASK. This remains vitally the case as economic conditions remain soft.

After profits, CASK has become a vital focus for airline managements over recent years. Segmentation of the world's airlines according to their unit cost - cost per available seat kilometre (CASK) - reveals much about their relative competitive positioning. It highlights the differences between airline business models, and also between the major regions.