CAPA Americas Summit: ULCC ambitions in the US remain high

Opinions abound over the ultimate size and shape of the ULCC model in the US market place. The market share of Frontier and Spirit remains in the mid-single digits, but their growth rates and order books indicate that their ambitions to capture a larger share of the market remain robust.

As Frontier and Spirit continue their growth trajectories, US full service airlines are using segmented fares and hub densification to beat back the ULCC threat. But if Europe is any example, full service airlines may need to shift their focus as the market evolves.

ULCCs cannot rest on their laurels either. In order to remain competitive they need to think outside the box, and a planned codeshare between Frontier and Volaris could be the first test of the model's evolution.