How Major Airlines Are Responding to the Rise of Budget Carriers

In past years, discount carriers operated mainly within local and regional markets, serving smaller or harder-to-reach destinations. The rise of low-cost long-haul airlines that offer no-frills fares across borders forced major carriers to adapt in order to stay competitive.

To retain frequent travelers and preserve annual revenue, legacy airlines such as Delta Air Lines, United Airlines and American Airlines have moved beyond simply cutting fares. Introducing lower-priced base fares — which guarantee a seat but include fewer ancillary services — has become a common starting point. At the same time, major carriers are investing in onboard amenities to differentiate their service, improving in-flight entertainment systems and boosting WiFi availability and performance.

Some low-cost long-haul operators, like Norwegian Air and WOW Air, have added conveniences such as seat-back charging outlets on certain routes, though they often do not provide complimentary in-flight WiFi on intercontinental flights. These carriers typically unbundle services that traditional airlines include in the ticket price; for example, meals on long-haul flights are commonly part of the fare with major airlines, while airlines like Norwegian and WOW offer meals only for an additional charge or by advance purchase.

Frequent-flyer programs remain a key retention tool for bigger airlines. Loyalty schemes tie customers to accumulated benefits and status, creating a barrier for travelers considering switching to a new carrier whose rewards program would require starting over. As a result, airlines balance lower base fares and optional add-ons with enhanced loyalty incentives and targeted in-flight improvements to attract price-sensitive passengers without sacrificing long-term customer relationships.

Overall, the competition between legacy carriers and low-cost long-haul airlines has reshaped ticket structures and passenger expectations. Travelers now choose between bundled comfort and predictable service on established carriers or à la carte pricing and lower headline fares on budget operators. The market continues to evolve as airlines weigh price, service, loyalty benefits and onboard technology to meet diverse traveler preferences.