Budget Airlines in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: August 2024
SIC SP0.068Revenue
£11.1bn
Past 5-Year Growth
Profit
£XXX.Xm
Employees
29,049
Businesses
4
Wages
£X.Xbn
Budget Airlines in the UK industry analysis
Budget airlines have benefitted from consumers increasingly seeking value for money. The industry is highly concentrated, consisting of only four airlines. External factors, including business and consumer confidence, household disposable income and outbound and international tourist numbers, determine demand for budget airlines. Shocks like natural disasters, terrorist attacks and disease outbreaks also affect demand. Revenue is expected to inch upward at a compound annual rate of 0.3% over the five years through 2024-25 to £11.1 billion, including growth of 5.9% in 2024-25.
Trends and Insights
- Increased travel demand boosts revenue. As economic conditions improve and consumer confidence rises, UK residents are taking more trips abroad, contributing to higher spending on budget airlines.
- Budget airlines drive sales with affordable tickets. By excluding non-essential services and focusing on keeping prices down, budget airlines prove extremely appealing to people seeking a cost-effective travel option.
- The North West's big cities attract budget airlines. With Manchester and Liverpool hosting major airports, budget carriers like easyJet, Jet2 and Ryanair have established operating bases in the region to serve its large population.
- Budget airlines fight fiercely for sales. They strive for a competitive edge by running exclusive routes, investing in efficient aircraft, offering quality customer service and seeking high visibility on comparison sites.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.3 % over the past five years, to reach an estimated £11.1bn in 2024.
Trends and Insights
Value-seeking consumers have raised demand for budget airlines
- The lower value of the pound due to Brexit has supported demand from overseas tourists capitalising on increased purchasing power in the UK. Some UK residents also switched from more expensive traditional airlines as overseas holidays became more expensive.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Stronger travel demand will drive growth in revenue
- An anticipated improvement in economic conditions as inflation normalises and the Bank of England cuts interest rates will fuel demand for budget airlines.
Biggest companies in the Budget Airlines in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
easyJet Airline Company Ltd | 10,425.2 | |
Jet2.com Ltd | 1,250.7 | |
Ryanair UK Ltd | 254.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Ticket sales, Ancillary services and Other. Ticket sales is the largest segment of the Budget Airlines in the UK.
Trends and Insights
Budget airlines are more affordable to the general public, boosting ticket sales
- Budget airlines, also known as no-frills airlines, eliminate non-essential services. Consumers only looking to purchase a ticket often choose a budget airline over traditional, full-service airlines with higher ticket prices because they include more ancillary services. However, reduced leg space and paying extra for baggage allowance put some customers off.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Intercity Passenger Rail Transport in the UK
- Sea & Coastal Passenger Water Transport in the UK
- Scheduled Passenger Air Transport in the UK
- Non-Scheduled Passenger Air Transport in the UK
Complementors
- Travel Agencies in the UK
- Tour Operators in the UK
- Corporate Travel Services
International industries
- Global Airlines
- International Airlines in the US
- Domestic Airlines in the US
- Scheduled Air Transportation in Canada
- International Airlines in Australia
Table of Contents
About this industry
Industry definition
This industry includes all no-frills airlines, which are also known as a low-cost, discount or budget airlines. These are airlines that offer low fares by eliminating many traditional passenger services.
What's included in this industry?
Ticket salesAncillary servicesName and flight changesCommission earned from car hire bookings and travel insuranceCompanies
easyJet Airline Company LtdJet2.com LtdRyanair UK LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
LOW-COST CARRIERLOAD FACTORAIR PASSENGER DUTYIndustry Code
SIC 51.10/1 - Budget Airlines in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Increased travel demand boosts revenue. As economic conditions improve and consumer confidence rises, UK residents are taking more trips abroad, contributing to higher spendi...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Budget airlines drive sales with affordable tickets. By excluding non-essential services and focusing on keeping prices down, budget airlines prove extremely appealing to peo...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The North West's big cities attract budget airlines. With Manchester and Liverpool hosting major airports, budget carriers like easyJet, Jet2 and Ryanair have established ope...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Budget airlines fight fiercely for sales. They strive for a competitive edge by running exclusive routes, investing in efficient aircraft, offering quality customer service a...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
EasyJet rebounds well, surpassing pre-pandemic revenue levels. The budget airline saw passenger numbers continue to recover, reaching nearly 83 million in the 12 months throu...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of easyJet Airline Company Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Jet2.com Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Ryanair UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for easyJet Airline Company Ltd, and factors influencing its performance in the industry
- Description and key data for Jet2.com Ltd, and factors influencing its performance in the industry
- Description and key data for Ryanair UK Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Budget airlines are regulated by the CAA and DfT. These two governing bodies meticulously oversee safety, security, economic and environmental regulations to ensure budget ai...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Multitasking workers means lower wages. Budget airlines seek to employ fewer staff by having them carry out multiple roles, like flight attendants also working at boarding ga...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Budget Airlines in the UK industry in United Kingdom in 2024?
The market size of the Budget Airlines in the UK industry in United Kingdom is £11.1bn in 2024.
How many businesses are there in the Budget Airlines in the UK industry in 2024?
There are 4 businesses in the Budget Airlines in the UK industry in United Kingdom, which has declined at a CAGR of 4.4 % between 2019 and 2024.
Has the Budget Airlines in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Budget Airlines in the UK industry in United Kingdom has been growing at a CAGR of 0.3 % between 2019 and 2024.
What is the forecast growth of the Budget Airlines in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Budget Airlines in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Budget Airlines in the UK market in United Kingdom?
The biggest companies operating in the Budget Airlines market in United Kingdom are easyJet Airline Company Ltd, Jet2.com Ltd and Ryanair UK Ltd
What does the Budget Airlines in the UK in United Kingdom include?
Ticket sales and Ancillary services are part of the Budget Airlines in the UK industry.
Which companies have the highest market share in the Budget Airlines in the UK in United Kingdom?
The company holding the most market share in United Kingdom is easyJet Airline Company Ltd.
How competitive is the Budget Airlines in the UK industry in United Kingdom?
The level of competition is high and increasing in the Budget Airlines in the UK industry in United Kingdom.
