Low-cost airlines traffic evolution in South-East Europe

Low-cost airlines take up an increasing share in the structure of the aviation market. Currently, there are more than 40 low-cost airlines operating in Europe and they generate 38 percent of total passenger traffic and 23 percent of total Instrumental Flight Rules (IFR) operations [1, 2, 3]. There are contrary opinions about the future of low-cost business model; from the scenario of survival of two or three biggest low-cost airlines in Europe, to the scenario of taking the role of primary operators in most European short and medium haul routes. This paper elaborates business model of low-cost airlines and defines forecasting methods of growth of air transport with the aim of forecasting traffic share of low-cost airlines operations in South-East Europe.