The low cost air transport market - Italy

With low cost air transport we refer to that service offered by low cost airlines consisting of the possibility to buy and use flights at lower prices than those applied by traditional airlines. This service was born in the United States in 1970 with the Southwest Airlines company but began to spread considerably only in the 1990s thanks to a strong process of deregulation.  Low cost airlines have undergone a strong expansion process in recent years thanks not only to economic growth but also, in particular, to the travel and tourism sector. As a result, the global low cost airline market is expected to grow between 2021 and 2025 at a CAGR of 8.62%, reaching a value of approximately $250 billion at the end of this time period. Global market growth is also expected to be driven primarily by the expansion of low-cost airlines in developing countries.  Within Italy, the low-cost air transport market is booming, with high growth rates despite limitations due to the spread of the Covid-19 pandemic. In Italy, the low-cost air transport market is dominated by the Irish airline, Ryanair, followed by EasyJet and then by Wizz Air and Volotea, which continue their strategy of territorial expansion by dedicating themselves to the opening of an increasing number of new bases at Italian airports.  A strong growth driver for this market within the Italian panorama will certainly be the closure of Italy's largest airline, Alitalia, which, after a long period in which it was subjected to the extraordinary administration procedure, finally closed its doors in autumn 2021. This offers obvious growth opportunities for low cost airlines that will be able to take over the market share previously belonging to Alitalia.