Three relatively new low-fare airlines have run into troubles ranging from minor to bad, with one shutting down completely and the other two cutting or delaying new air routes. Industry pundits have been saying for some time that it wouldn’t be easy for the slew of new low-fare airlines to make their business models work, given the competition from established low-fare lines and ongoing opposition from the legacy lines. And that now seems to be ringing true.
Related:Primera Air Abruptly Shuts Down, Stranding Passengers
Here are the most recent low-fare airlines to show signs of instability, financial or otherwise.
Cobalt Air Strands Passengers
A low-fare airline based in Cyprus has failed, completely shutting down. As in the recent Primera case, travelers already at their destinations were stranded and travelers who had not yet started their trips were left with worthless tickets. Also as in the Primera case, other lines offered “rescue” fares, starting with Wizz Air.
Cobalt suggested travelers with worthless tickets contact their credit card issuer, travel agency, or tour operator. This failure probably does not impact many U.S. or Canadian travelers, but it reinforces the warnings of a financial winter looming for European low-fare airlines: Cobalt wasn’t the first, and it likely won’t be the last. Anyone planning to use a small low-fare startup should consider buying travel insurance. And buy it from a third party, not the airline: Most airline insurance policies don’t pay off if the corporation that sold them folds.
WOW Air Cuts Routes
The fast-growing Icelandic low-cost airline is dropping five U.S. routes to its Reykjavik hub: Cleveland, Cincinnati, Dallas (Ft. Worth), New York (JFK), and St. Louis. It’s hard not to conclude from this that that (A.) $99 transatlantic fares are less sustainable than they thought, (B.) a successful air hub operation requires lots of profitable spokes on either side, and (C.) connections on routes that already have nonstop competition is not an easy sell.
This situation shows how quickly low-fare lines react to unfavorable markets: If it isn’t selling well enough, they drop it. Fortunately, WOW remains fully operational, and no travelers will lose any money. But it will probably drop another route or two, and perhaps still continue to add a few new ones to test.
Related:11 Exciting New Airline Routes for Cheap Flights Swoop Postpones New Routes
WestJet’s new low-fare airline subsidiary, Swoop, postponed its new routes into the U.S. that were due to launch October 11. Fortunately, the airline says the flights were postponed because of a delay in bureaucratic paperwork, not financial problems. And you can expect the new routes to operate by the end of October.
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With weather disruptions and constant delays upending the conversation about air travel this summer, it’s actually not all bad news. Many carriers are working to improve what they offer as they invest in new aircraft, lounges and amenities, a welcome change following the pandemic years.
An American Airlines passenger who went viral because of videos of her appearing to accuse a fellow flier of being "not real" said that the experience wrecked her life.
Flying in first or business class might seem like it’s a privilege reserved only for ultra-wealthy travelers. But plenty of ordinary people fly in premium airline seats all the time. If you’re savvy about how you pursue an upgrade on a flight, you can score a spot in the front of the plane without paying exorbitantly.
Even though it seems like the summer travel season is flying by, those still looking to book a European getaway have some cheap options for a last-minute trip, according to a new report.
Editors’ Note: On October 1, 2018, Primera Air announced it will cease operations immediately. The following story was published on September 11, 2018.
“Boutique-style flying experience for those who want to enjoy business class at a smart price.” That’s the basic value proposition of La Compagnie, a French airline that operates all-business-class flights from Newark to London/Luton and Paris/DeGaulle. Although at least four lines have flopped with an all-business-class product, La Compagnie seems to be making a go of it.
North American travelers looking for bargain transatlantic fares will have lots more options this summer, as European-based low-fare lines expand their reach. Three lines have announced aggressive moves:
If you’ve never heard of Iceland-based booking website Dohop, you should check them out. The company has been nominated for two World Travel Awards—World’s Leading Flight Comparison Website and World’s Leading Travel Technology Partner—and recently launched an amazing tool called FLYR Fare Protection, in partnership with FLYR.
If you closely followed the debate leading up to the American-US Airways merger, you’ll recall a period during which it seemed a safe bet that the Department of Justice would nix the tie-up on antitrust grounds. DOJ officials signaled that, after signing off on mergers between United and Continental, Delta and Northwest, and Southwest and AirTran, further consolidation was likely to impede competition and give the airlines outsize pricing power. And it was their duty to forestall just such an outcome.
If you’re looking for yet another reason to cross the Atlantic, WOW Air just gave you one: The Icelandic-based airline is expanding low transatlantic fares and “second city” air routes.
Google “La Compagnie” and the top non-sponsored result describes the airline thusly: “Discover Paris and London with La Compagnie, the unique French all-business-class airline, at an affordable price.”