Fewer low-cost airlines in the future?

UK passengers could be faced with a much smaller selection of low-cost airlines to choose from when they go on their holidays, analysts warn.

Europe currently boasts around 50 no-frills airlines but that number is expected to shrink dramatically over the next few years, with analysts warning that the market is far too crowded.

"At last count, there were about 50 low-cost carriers in Europe, which is totally unsustainable," AeroStrategy's David Stewart told MarketWatch.

Going on developments in the US market, where many low-cost airlines have flopped, Mr Stewart believes the market could thin down to just three or four key players.

The European low-cost airline sector continues to welcome in new players each month, drawn by low interest rates and a high availability of second-hand planes.

Big names such as Ryanair, easyJet and Air Berlin, and the low-cost wings of traditional airlines - such as the UK's bmibaby - are expected to stay the course.

But analysts don't hold out much hope for the next layer of players, who are being increasingly squeezed by the market's big guns as they move in on any routes that have proved profitable.

It is predicted that the only small no-frills airlines that will survive in the long-term are those, like Wizz Air, that stay small and offer niche services in a special airspace.

But with low-cost airline MAXjet recently launching transatlantic flights from its US base, there is no shortage of budget airlines lining up to prove the doubters wrong.

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