Legacy carriers may have reduced their cost bases but not to the extent of low-cost carriers
- Low-cost model is likely to pay dividends in easyJet’s recovery
- Unlike other low-cost carriers, easyJet mostly serves primary airports
- easyJet is well-positioned to respond to any pent up demand in the market
As legacy carriers across Europe continue to pull back capacity and cancel routes, easyJet is in a strong position to capitalize on its ambitions and win market share on these lucrative routes. Its low-cost model is likely to pay dividends in the airline’s recovery.
EasyJet tends to fly short distance, point-to-point routes. Unlike other low-cost carriers, easyJet mostly serves primary airports, allowing it to go head-to-head with legacy carriers, which often have a stronghold at these airports. easyJet is already an established brand in many of these markets, unlike other low-cost carriers, and this will serve it well as it looks to increase its market share off the back of its competitors’ struggle to survive.
The latest COVID-19 Recovery Survey showed that globally, a staggering 87% of respondents were ‘extremely’, ‘quite’, or ‘slightly’ concerned about their personal financial position. The low fares offered by the airline will better cater to this need and easyJet is well equipped to lower its prices in comparison to legacy carriers.
EasyJet has long been regarded as a low-cost leader, and its ability to lower its prices will mean the airline can better capture the demand from financially conscious travelers. The drastic action taken by the airline to reduce its costs as a result of the COVID-19 pandemic will benefit the carrier as it looks towards recovery and will mean the airline can competitively price its tickets, undercut the competition and win a larger market share. Legacy carriers may have reduced their cost bases but not to the extent of low-cost carriers. The airline is well-positioned to respond to any pent up demand in the market and this is likely to pay off in the long-run.
If easyJet can win a greater market share in legacy dominated markets, it will leave little room for the reintroduction of services by others. This could leave easyJet in a much stronger position going forward, and the airline could emerge as a winner from the pandemic
