What Are Hybrid Airlines & How Do They Work?

Summary The rise of budget airlines led to the hybrid model offering affordable prices with high-quality service. No strict rules define the hybrid model, but the goal is to offer a quality service at lower costs. Airlines like JetBlue and Air Premia embrace the hybrid model, combining budget airline amenities with features of legacy carriers.

Since the inception of the low-cost carrier business model in 1949, first with Pacific Southwest Airlines (PSA), the airline industry has changed dramatically. Many new budget airlines have emerged across the world, disrupting the traditional market dominated by full-service carriers. Not surprisingly, the popularity of low-cost has meant full-service carriers lost a significant market share.

Legacy airlines have adopted cost-cutting strategies to stay competitive, while budget airlines have focused on improving the passenger experience and attracting new customers. As the industry has evolved alongside the rise of low-cost carriers, a relatively new airline model known as the hybrid model has emerged. Although several studies have explored this concept, airlines rarely categorize themselves as such in their corporate communications.

Balancing low price with quality The growing competition between low-cost and full-service airlines led to the development of a new business model. In simple terms, hybrid airlines typically operate on a low-cost carrier model but also include features of legacy carriers, such as improved customer service, .