The business behind budget airlines like Ryanair and Spirit

The low-cost business model was first implemented by Pacific Southwest Airlines in 1949 and perfected by Southwest Airlines in the early 1970s. Today, low-cost carriers like Ryanair in Europe and Spirit Airlines in the U.S. make up almost a third of all global airline capacity. These airlines use several strategies to keep costs down including limiting their amenities to the bare minimum and charge for add-ons such as seat selection, food and luggage.