Glossary · Travel distribution
Low-cost carrier (LCC)
A low-cost carrier (LCC) is an airline with a lower cost structure than comparable carriers that uses it to sell lower fares — the working definition ICAO gives — typically by flying one aircraft type point to point, selling directly and charging separately for bags, seats and other services.
Reviewed 30 Oct 2026
How the LCC model works
- A standardised fleet, to cut training and maintenance costs.
- Point-to-point routes rather than hub connections, and quick turnarounds.
- Secondary airports with lower charges, where available.
- Direct sales and online check-in rather than agents and desks.
- Charges for baggage, reserved seats and meals instead of including them.
These traits come from a 2013 paper by Hong Kong's Legislative Council, which also notes there is no legal definition of an LCC. ICAO describes the common thread as a relentless focus on cost and on what travellers will actually pay for.
LCC vs full-service carrier
| Low-cost carrier | Full-service carrier | |
|---|---|---|
| Network | Point to point | Hub and spoke, with connections |
| Cabins | Usually one | Several |
| Bags and seats | Mostly paid extras | Often included, depending on fare brand |
| Main sales channel | Own website and app | Own channels plus agencies and GDSs |
The lines have blurred: many network airlines now sell basic fares without bags, and some LCCs sell bundles and connecting itineraries.
What it means for fare collection
With extras priced separately, an LCC's headline fare is a starting point, not a trip price, which makes ancillary revenue data part of any fair comparison. Because LCCs sell mainly through their own sites, those sites are often the only place to see the fare at all. The setup is on low-cost carrier fares and airline ancillary prices; why the same seat costs different amounts by country is in why flight prices differ by country.
FAQ
Questions
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Is a low-cost carrier the same as a budget airline?
Yes, the terms are used interchangeably. Low-cost describes the cost structure; budget describes the fares that structure makes possible.
Why are some low-cost carriers missing from comparison sites?
Many LCCs sell mainly or only through their own websites and apps, and some restrict or do not supply third-party sellers. Their fares then have to be checked on the airline's own site.
Do low-cost carrier fares include baggage?
Usually only a small personal item or cabin bag, depending on the airline and fare brand. Checked bags and larger cabin bags are typically paid extras, so compare total trip prices rather than base fares.
Are low-cost carriers always cheaper?
Not always. Once bags and seats are added, or on routes where a full-service carrier discounts heavily, the total can be similar or higher. Only a like-for-like comparison of the whole trip answers it.
Sources & review
Last reviewed by the ARC Proxies team. Prices are read from the live catalog at build time.
- [1]ICAO: Low Cost Carriers (LCCs)
- [2]Legislative Council of Hong Kong: Operation of Low-Cost Carriers in Hong Kong, CB(1)1809/12-13(02), September 2013
In practice