Low-cost airlines shake up market for long-haul flights

Cancun, Mexico

LOW-COST, long-haul air travel has taken off across the Atlantic, shaking a club of major airlines meeting in Mexico this week and forcing established flag carriers to set up budget subsidiaries or lower fares.

Transatlantic routes are among the industry's most popular and profitable, and budget carriers are trying to grab a slice of that business by boosting capacity on them by 68 per cent this summer, according to data from air travel intelligence company OAG. A looming fare war has gained fresh momentum from lightweight new planes with fresh, appealing interiors that help to keep costs down.