ULCCs glimpse an opening as the US’ consolidated industry focuses on yields and profits

Consolidation in the North American marketplace has now been a mainstay for a decade, beginning with the combination of US Airways and America West and culminating with US Airways and American closing their merger in late 2013.

Those tie-ups, along with the Delta-Northwest merger, Continental's pursuit of United and Southwest's acquisition of AirTran, have resulted in four airlines controlling approximately 47% of North America's capacity (ASMs).

The process of consolidation and rationalisation has inevitably created some openings. This potentially offers space for ULCCs and other more niche airlines to capture a larger place in the market. This report looks at some of the recent developments and at where the industry may be heading.

The topic of ULCCs in the US market place will feature in a high level panel session at CAPA's Americas Aviation Summit in Las Vegas on 27/28 April, 2105.