The low-cost airline model that reshaped US air travel over decades is facing
growing headwinds, the GAO said Thursday. While industry consolidation did not
ultimately reduce overall competition, many of the advantages that let low-cost
and ultra-low-cost carriers disrupt the market are eroding as legacy carriers
lean on premium cabins, high-margin loyalty programs and co-branded credit
cards, forcing low-cost carriers to reassess ultra-low-fare business models.
