Recent developments suggest that India and the Middle East may hold the key to unlocking its full potential
A new report by OAG, a leading travel data provider, has highlighted India and the Gulf Cooperation Council (GCC) countries as emerging leaders in long-haul low-cost (LCC) air travel.
After years of trial and error, carriers in these regions are now strategically positioned to meet the rising demand for affordable, long-distance flights.
In a press statement OAG says that while the long-haul low-cost model has faced significant challenges in the past including competition from legacy carriers, seasonality and shifting consumer preferences, recent developments suggest that India and the Middle East may hold the key to unlocking its full potential.
It adds that India’s rapidly expanding economy and its booming middle class have created an ideal environment for low-cost carriers.
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The statement adds that with increasing disposable income and a growing number of people traveling abroad for work, leisure and religious purposes, demand for affordable air travel has surged.
It adds that this trend is particularly evident in the growing number of flights connecting India to the GCC and beyond. At the same time, the GCC has seen a strong increase in demand, particularly for religious tourism and the movement of migrant workers.
According to OAG both independent carriers like IndiGo and Air Arabia and subsidiary carriers like flydubai, flyadeal, and Air India Express have capitalised on these emerging markets, driving growth in low-cost air travel.
It adds that between 2010 and 2025, India and Saudi Arabia are projected to see an eightfold increase in low-cost flights. Other markets in the region have also seen significant growth, demonstrating the increasing demand for budget-friendly air travel.
The statement adds that as low-cost carriers continue to expand their reach, the focus is now shifting to wide-bodied aircraft, which could offer greater capacity and improved efficiency for long-haul services.
It adds that fyadeal and flynas have already made strategic moves by placing orders for Airbus A330s, and the growing demand for migrant labour and religious tourism makes these routes an attractive opportunity. Saudi Arabia’s Vision 2030 project, which aims to attract 30 million Umra visitors by 2030, is one of the driving forces behind this expansion.
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OAG says that India, too, is seeing carriers like IndiGo moving into the wide-bodied market. The airline has started offering long-haul services to cities like Manchester and Amsterdam, and its expansion plans include routes to Europe, the Middle East, and Southeast Asia.
It adds that the expansion into wide-bodied aircraft also opens up the possibility of offering premium services. Airlines like flydubai, IndiGo, and flynas are developing premium cabins with higher fares and more amenities, tapping into a market willing to pay for additional comfort on long flights.
It further adds that by 2027, long-haul low-cost airlines in India and the GCC may have finally found a sustainable niche in the market. While challenges remain, including high operating costs and external factors that could disrupt the market, the continued growth in low-cost air travel in these regions, combined with a demand for more international connectivity, suggests that long-haul low-cost services have found a viable path forward.
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