Why Budget Airlines Are So Cheap (And How to Fly Them Without Paying Extra Fees)
I’ve flown a lot of budget airlines over the years. Many of them multiple times. In fact, I’d say 90% of my flights now are on “budget” airlines. Yes, the ones people complain about. They’re my favorites.
I know how to avoid getting nickel-and-dimed. I understand what to expect (and what not to expect). For me, understanding how low-cost airlines make money helps me use that to my advantage.
It means I snag some incredible deals on flights.
In this article, I’ll break down how budget airlines actually make money and how to avoid the common mistakes that make people swear they’ll “never fly them again.”
Budget airlines punish disorganization and reward preparation.
If you’re willing to plan ahead, they can be one of the most powerful tools for saving money on flights.
In Short: How Budget Airlines Make Money
Budget airlines make money in three main ways:
- They unbundle the ticket. The base fare covers your seat. Everything else, like carry-on bags, seat selection, priority boarding, and even snacks, costs extra.
- They earn their money from add-ons. All these additions make up a large portion of total revenue.
- They keep operating costs extremely low. This takes many forms. Often, they fly one aircraft type, pack more seats onto each plane, have less comfortable seats, minimize turnaround time, and often use smaller or less congested airports. Lower costs for them allow lower fares for us.
They do not cut safety standards. They’re offering a stripped-down product and charging separately for convenience.
If you don’t need the extras, you can often fly for dramatically less. If you do need them, the price starts to look more like a traditional airline.
The reason I take these airlines without stress is that I know what to look for before I book.
1) They Unbundle The Ticket. That Price is Just a Hook.
When you see a $59 flight, that price will only cover your seat to get you from Point A to Point B.
You will likely pay extra for carry-on bags, seat selection, snacks, and changing your flight will come with hassle and costs.
Traditional airlines bundle a lot of those things together and give you one higher price.
The key to making this work for you is to plan your travels so you don’t need these upsells.
I talk about this later in the article.
2) They Make Most of Their Money on Add-Ons
That cheap fare exists to lure you in. Budget airlines can only make real profits when most people buy add-ons.
In some cases, these extras account for 40% to 60% or more of what the airline brings in per passenger.
For example, in 2024 Ryanair earned 4.3B out of total revenue of 13B euros on these extras, according to their own public reports. That’s a third of their money.
As another example, a press release from Frontier said they make about $70 in “ancillary revenue” per passenger on average, and $113 revenue per passenger total. That’s over 60%.
The cheap ticket isn’t the full business model. Budget airlines bet that some travelers will pay…
- $40 for a carry-on
- $25 to choose their seat
- $15 for early boarding
- $10 for snacks
Others won’t. I won’t.
If you can travel with a small personal item, skip seat selection, and bring your own food, you can pay the original advertised price.
Go Into This Knowing What You’re Paying For
It’s so funny to me how many people complain that the food was extra or that the seats didn’t have a TV on them. What did you expect? The math has to math for the airlines.
The key is to plan ahead. This is much easier said than done, of course. It’s why I wrote a whole ebook about tips to pack less, plan ahead with food, and understand the reality of dealing with customer service and fare change on budget carriers.
If you pack light and plan ahead, you can save hundreds by taking budget carriers.
Just make sure to download the shows you want to watch on your phone or laptop before you board.
They Keep Operating Costs Low
Budget airlines are able to charge low base fares because they run extremely lean operations.
They design their entire business around lowering costs at every level.
Lower costs mean they don’t need to charge $247 to make money. These aren’t universal to every budget airline, but here’s an overview of strategies.
They Fly One Type of Aircraft
Many budget airlines operate just one primary aircraft model.
That means staff only need to be trained on one aircraft type, scheduling is easier, and their mechanics are standardized.
Traditional airlines often operate multiple aircraft types across long-haul and short-haul fleets. That adds complexity. Complexity adds cost.
They Fit More Seats on Each Plane
Low-cost carriers typically configure their aircraft with more seats than traditional airlines.
More seats means:
- More tickets sold per flight
- Fixed costs (fuel, crew, airport fees) get spread across more passengers
If a plane costs roughly the same amount to operate whether it has 160 seats or 190 seats, those extra seats dramatically improve the math.
You may sacrifice a bit of legroom.
But the airline reduces cost per passenger.
No Bells and Whistles
Whether it’s Spirit, Avianca, Volaris, or Breeze, you’re not going to have a TV, your headrest won’t be as padded, and the snacks will cost extra.
Such is the game.
They Avoid Complex Hub Systems
Major legacy airlines operate hub-and-spoke networks. Flights funnel through major hubs like Atlanta, Chicago, or Dallas.
That model supports business travelers and international connections. It also adds complexity and staffing costs.
Many budget airlines instead focus on point-to-point routes.
Fewer connections. Less baggage transfer. Fewer moving parts.
This is also how they compete. They run direct routes that legacy carriers often don’t.
For example, Breeze Airways, which I’m happy to fly, has direct routes from minor airports that you’d need a layover for on a legacy carrier.
This brings me to the next point.
They Often Use Smaller or Less Congested Airports
Smaller airports can mean:
- Lower landing fees and taxes
- Faster turnaround times
- Less congestion-related delays
In some cases, airports even offer incentives to attract new routes because more passengers mean more parking revenue, food sales, and tourism dollars.
Again, lower costs allow lower fares.
Are Budget Airlines Safe? Yes, They Are.
Let’s address the question that almost everyone thinks but doesn’t always say out loud:
Are budget airlines safe?
Yes.
In the United States, all commercial airlines must meet the same Federal Aviation Administration (FAA) safety standards. In Europe, Asia, Canada, and Latin America, they have similar, equally strict standards.
There is no “budget” version of aviation safety.
Pilots go through the same certification process.
Aircraft must meet the same maintenance standards.
Airlines are subject to the same regulatory oversight.
Governments do not lower safety requirements because a ticket is cheaper.
How I Avoid Budget Airline Fees
All right, now we’re at the fun part.
I’ll say it again: Budget airlines punish disorganization and reward preparation.
To have a positive, inexpensive experience, you have to approach budget airlines differently.
I Accept That Flight Changes Are Harder
Fare rules are stricter. Customer service staffing is leaner. Sometimes, you may not be able to talk to an actual person. Flights may not operate daily.
If you miss a flight or need to change plans at the last minute, you may have to accept the loss.
That’s part of the trade-off.
Over a lifetime of flying, I know I might lose money on a flight here and there. But long-term, the savings from consistently choosing lower fares far outweigh the occasional loss.
I Pack Light. This is Non-Negotiable.
If you need a full-size carry-on and a checked bag every time you travel, budget airlines probably won’t feel cheap.
But if you can travel with a personal item, the math changes dramatically.
I dedicate two full chapters in my ebook to packing light because it’s that important.
When you remove baggage fees from the equation, you unlock the real value of budget carriers.
I Am Flexible With My Travel
Many budget airlines do not operate routes daily. They might fly three times per week.
If you can select the cheapest travel day, you’ll have a lot more luck.
It also helps to know how to use the best flight search engine tools for budget travel, which I outline here.
I Bring My Own Food
Airport food is expensive. Airplane food is expensive.
I grab food before I leave for the airport. A sandwich from outside the airport costs half as much and tastes better.
I’m giving away my secret but at my hometown airport, JFK, I always stop and get a sandwich or two at a bodega right outside Jamaica Station, where the AirTrain leaves from.
I Don’t Pay for Seats
Most budget airlines will seat passengers together on the same booking if they can.
I Plan My Entertainment
Will legroom sometimes be tighter? Sure.
But let’s be honest. Legacy carriers in economy often aren’t much better.
Will there be seat-back TVs? Sometimes no.
I bring a book. I charge my phone. I bring headphones.
Almost every budget airline offers onboard entertainment through your own device. Some of charging outlets too.
Over time, flying budget airlines has saved me thousands of dollars. Stop overpaying for the legacy carriers, which, frankly, don’t provide that much as long as you can plan ahead.
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