U.S. ultra-low-cost carriers are facing eroded cost advantages due to rising unit costs, fare compression, and intensified competition, making their traditional model unsustainable. Successful U.S. low-cost airlines are evolving by focusing on network exclusivity, diversified revenue streams, or hybrid premium-lite models, rather than pure scale or lowest fares. Industry trends indicate a shift toward consolidation, retrenchment, and selective hybridization, as illustrated by the proposed Allegi
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