Low-cost airlines fuel travel

New figures from OAG Worldwide indicate that global capacity on cheap flights has increased by 18 per cent, a surge it attributes to the success of low-fare travel.

Demand for cheap flights in the U.S. continues to be strong, although the maturity of the market means that growth rates are slower than in the past.

It is the emerging low-fare markets that are fuelling demand most dramatically with discount airlines in Asia increasing capacity by 257 per cent and those in the Middle East by 203 per cent this month.

Four of the top ten airlines that added the most capacity over the past year were discount carriers, including Dallas-based Southwest Airlines, which added more than 46,700 new flights.

Across the globe, airlines are offering 266.5 million seats this January, up four per cent from this time last year.

Industry insiders are likely to take this as a further indication that the industry's woes may be over, with capacity now at a level not seen since before September 11, 2001.

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