S2E4 - Airline Pricing: Can Low-Cost Really Work?

In this episode of The Pricing Guys, Avy and Michael dissect the ultra-low-cost airline model: why some see the model thriving while others see it breaking down. They explore how premium mix (first class, premium economy) subsidizes headline-low fares, what happens when capacity exits and re-enters, and why “being cheapest” won’t hold without tight cost control and a well-defined value proposition.