Low-cost airlines can tackle higher costs by flying smaller planes: Singapore Airshow panellist

LOW-COST airlines, which have driven the bulk of air travel demand in Asia-Pacific, are facing a jump in business costs.

Moreover, the economic headwinds are going to start to have an impact on the pace and profile of growth of the sector, plane maker Embraer said.

The Brazilian small, narrow-body aeroplane manufacturer added that pairing demand with capacity – that is the deployment of the right-sized aircraft – would help airlines to control cost. This could enable carriers to make fares affordable and sustain demand.