The report indicates that low-cost airlines in the United States are losing their competitive advantage relative to major airlines.
The low-cost airline model that has reshaped the landscape of air travel in the United States for decades is facing increasing challenges; at the same time, traditional airlines are gradually gaining the upper hand with their premium cabins, high-profit frequent flyer programs, and co-branded credit cards. A report released by the U.S. Government Accountability Office on Thursday pointed out that despite the wave of consolidation in the airline industry ultimately not weakening overall competitiveness, many of the advantages that low-cost and ultra-low-cost airlines once relied on to disrupt the market are gradually eroding, forcing these airlines to re-examine their business models based on "ultra-low fares."
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