Dirt-cheap fares are popping up from airlines brave enough to expand or start out amid the COVID-19 crisis, as they try to eke out sales and get a jump on competitors that have pared back operations.
Airlines worldwide cut $1 billion of expenses a day last year to cope with the slump in passengers, and that’s given them some wiggle room to lower ticket prices. More broadly, cost savings are emerging for carriers as unwanted planes become available on the cheap. Thousands of laid off flight crew are also eager for work, allowing some airlines to go on hiring sprees.
Ultra-cheap fares could help revive the market by luring back customers who’ve been reluctant to fly due to border restrictions and lengthy quarantines. Vaccine rollouts add to the bullishness, even with air passenger travel in an unprecedented funk and a return to pre-crisis levels not expected before 2024.