There are many different types of airlines that are different sizes, have different cultures and have different business approaches.
This article explains the main types of airlines, how they work and what passengers can expect from each, along with how the boundaries between them have become increasingly blurred.
What different types of airlines are there?
Different types of airlines come in different shapes and sizes and have different business models. Some airlines are privately owned, meaning that the goal is to make a profit and some are government owned or subsidised, meaning that they are supported by the government and operate as more of a service to the people as opposed to a profit-making enterprise (although they may still make a profit).
The airline industry is also made up of airlines that operate in various regions and are of various sizes.
Major airlines typically operate on a large scale internationally. They usually make the biggest profit and hire the most employees. Examples include Emirates, Singapore Airlines and Qantas to name but a few.
National airlines are airlines that represent the nation. These may also be major airlines. Examples include Air China, British Airways and TAP.
Regional airlines operate only in a particular region, this could be a continent, a part of the world or perhaps just across a select few countries. Examples of regional airlines include Loganair in the UK and Widerøe in Norway.
The 3 different types of airlines
Passengers can choose to fly with a charter airline, a scheduled airline or a low-cost airline (also commonly referred to as a budget airline or no-frills airline). But what’s the difference?
Within the travel and tourism sector of the economy, there are many different levels and types of transportation. From planes to trains and cars, the industry has grown exponentially over the last few decades.
This is especially true for the aviation industry! As shown in the chart below from ICAO, the industry has experienced huge growth over the past few decades. According to IATA, airlines carried almost 5 billion passengers in 2025, and passenger numbers are forecast to keep growing.
Many people will simply book their flights and be done with it, without really understanding what they should expect from said flight. Will I get food included? Will the flight time be likely to change? What happens if the airline goes bust- am I protected?
Understanding the different types of airline helps passengers to know what to expect.
There are three main types of airlines typically found in the commercial aviation industry. Whilst each airline is slightly different, airlines will typically fit into one of the following categories:
- Scheduled airline
- Charter airline
- Budget airline
Each of these types of airlines, and what makes them unique, is summarised below.
What is a scheduled airline?
The first category is the scheduled airline. A scheduled airline is an airline that works to a specific schedule. Just like a bus, a scheduled airline will work to a timetable. Seats will be sold to passengers and the flight should operate as planned regardless of how many seats are sold.
Of course, there are always circumstances when a flight may be cancelled or when schedules may be changed, but as a general rule, this type of airline will operate as planned.
Many scheduled airlines are national carriers that represent a particular country. They may be private organisations or they may be owned by the Government.
Scheduled airlines traditionally provide an inclusive package that includes a seat, baggage and meals, although in recent years many airlines have been unbundling their products and selling each of these elements separately.
Scheduled airlines may also be referred to as full service carriers.
Examples of scheduled airlines
Examples of scheduled airlines include British Airways, Air India, Virgin Atlantic and United Airlines.
Video: Types of airlines explained
What is a charter airline?
The term ‘charter’ essentially means to rent or to lease. So in essence, a charter airline is one that operates on the basis of ‘rented’ or ‘leased’ flights.
These tend to be associated with package holidays. The holiday company effectively ‘leases’ the flight and combines it with the package holiday elements of a hotel and transfer.
Charter flights have traditionally been closely linked with the package holiday companies that dominated the UK market for decades, such as Thomas Cook (which collapsed in 2019) and TUI. Today, many travellers put together their own trips through dynamic packaging (for more, see Are airlines the new tour operator? Dynamic packaging in aviation), but package holidays remain popular, particularly with families.
Alongside the tour operator use of charter airlines, aircraft can be leased or chartered from airlines for use for particular events or occasions. The FA, for example, might lease an aircraft to fly all of their football players out for a game or the Government might lease a flight for a large event or summit.
What elements are included in a charter flight?
A charter airline will tend to follow the set structure that traditional charter flights have offered throughout the years.
Typically, passengers will be offered an in-flight meal, often pre-booked in advance for a fee. The Cabin Crew will then hand out meals to the relevant passengers. Sometimes the meal is automatically included in the price. Special meals are usually available upon request.
Charter airlines usually include a hold baggage allowance in the price of the holiday, although charges for overweight baggage can be high.
One of the main advantages of flying with a charter airline is the financial protection that comes with a package holiday. In the UK, package holidays that include flights are protected by the ATOL scheme, run by the Civil Aviation Authority, and many travel companies are also members of ABTA. This means that travellers will not be left out of pocket or stranded abroad if their holiday company or airline goes bust.
What are the benefits of using a charter airline?
There are a few benefits of using a charter airline.
One of the pros of this type of flight is that prices can be relatively low, especially when booked as part of a package. As always, it is worth comparing prices, for example using flight comparison sites such as Skyscanner.
Charter flights are also usually direct and non-stop, flying straight to popular holiday destinations.
Lastly, if you book as part of a package holiday, travellers benefit from the added security of ATOL protection.
What are the cons of a charter airline?
Flying with a charter airline also has its drawbacks, and the traditional charter model has declined as more people organise their holidays independently or using a dynamic package model. Many former charter airlines now also sell seats on their flights directly to the public.
One of the cons of a charter airline is the amount of cancellations that can happen with these types of flights. Since the flights are operated on an ad-hoc basis (i.e. when they are required), flight times can change or flights can be cancelled if there is not enough demand.
Another negative of a charter airline is that they often do not offer the luxuries that you might get with a scheduled airline. They may fly from smaller regional airports and rarely offer business or first class facilities.
Examples of airlines that operate charter and leisure flights include TUI Airways and Jet2.com, which fly many of the passengers on their own companies’ package holidays.
What is a budget airline?
Low-cost air travel has exploded in recent years across the globe. Whether you refer to it as a low-cost airline, a low-cost carrier, a no-frills airline or a budget airline, most travellers are now familiar with the concept: low-cost air travel, with all of the frills removed.
As demonstrated below, the low-cost airline industry has grown considerably in recent years, and the trend is set to continue.
Low-cost airline travel typically involves short-haul flights (less than around four hours), although some carriers have explored low-cost long-haul. This has worked in some contexts – for example, AirAsia X operates long-haul low-cost flights in Asia – but many airlines have struggled to make it work. Norwegian, which pioneered low-cost transatlantic flights, ended its long-haul operations in 2021.
The philosophy of a low-cost airline
A low cost carrier is basically exactly as it sounds. These flights operate without the frills and extras that are on many commercial flights.
Low-cost carriers have been particularly successful in Europe, where the sector grew from around 8 million passengers in 1998 to more than 100 million by 2007. Today, Ryanair is Europe’s largest airline by passenger numbers, carrying around 200 million passengers in its 2025 financial year. Many regions welcome low-cost carriers with open arms: according to Airports Council International, every one million passengers that travel through a new European destination can support around 1,000 jobs at the airport and another 2,700 in the local and regional area.
Such towns, however, are often at the mercy of the airlines, which tend to have the upper hand in negotiations and can often dictate conditions. When low-cost airlines withdraw their business from a specific airport due to lack of business or profit, this is known to have detrimental effects on the host community and its economy.
How can a low-cost airline be so cheap?
Low-cost airlines operate on the basis of efficiency. There are a number of ways that they are able to reduce costs and then pass this saving on to the passenger.
To begin, they will often operate out of secondary or tertiary airports. These airports tend to be located further from city centres and are cheaper to operate out of. This means that landing fees and taxes tend to be less. They can, however, be inconvenient for passengers, who may have to travel some distance to reach them.
Another cost-saving measure relates to weight. Low-cost airlines will often design their cabin interiors according to weight, removing unnecessary items such as additional toilets or galley features. Less weight means less fuel is used, which saves the airline money.
Turn-Around time is the time that it takes for the aircraft to land, disembark passengers, clean and re-stock, board passengers and depart again. Low-cost carriers frequently have a much shorter turn around time than scheduled airlines, often undertaking all of the above in only 20-30 minutes. They do this by asking Cabin Crew to clean rather than having cleaners and by having strict targets for airline staff.
Low-cost flights will, of course, stick to all of the legal requirements regarding health and safety etc and these aspects will never be compromised. Instead, they tend to limit aspects that make the flight more comfortable, such as legroom, free food and drink and free baggage.
Low cost carriers generally have the basics on the flights and if there are any extras, passengers typically pay for them separately. These are known as ancillary products. Some examples of ancillary products include-
-food and drink
-duty-free items
-car hire
-hotel bookings
-in-flight entertainment
-lottery tickets
Examples of low-cost airlines
There are many low-cost airlines operating in Europe and the rest of the world. Here are some examples-
-AirAsia
-easyJet
-Ryanair
-Wizz Air
-Jetstar
-IndiGo
-Southwest Airlines
-Spirit Airlines
-Volotea
-Vueling
Changes in the different types of airlines
The differences between the types of airlines are not always clear-cut.
In recent years many airlines have adapted their business operations in order to remain competitive in the marketplace. This has meant that not all airlines will easily fit into one of the three types of airlines outlined above and it is not always easy to categorise airlines in the same way that it used to be.
For example, scheduled airlines may use ancillary services just as much as a budget airline and budget airlines may offer premium services that are not traditionally associated with no-frills carriers. For example, American low-cost pioneer Southwest Airlines began charging for checked bags in 2025 and is introducing assigned and premium seating, while traditional airlines such as British Airways now charge for food and drink on short-haul economy flights. Airlines that combine features of both models are often described as ‘hybrid’ carriers.
Whilst scheduled, charter and low cost airlines do continue to be the three main types of airlines, differentiating between the types of airlines isn’t always an easy task these days…
Types of airlines: FAQs
Below are answers to some of the most common questions about the different types of airlines.
What are the three main types of airlines?
The three main types of airlines are scheduled (full-service) airlines, charter airlines and low-cost (budget) airlines.
What is the difference between a scheduled and a charter airline?
A scheduled airline sells seats on flights that run to a published timetable, while a charter airline operates flights that are hired or leased, often by tour operators for package holidays.
How do low-cost airlines keep prices down?
Low-cost airlines keep prices down by using secondary airports, operating a single aircraft type, fitting more seats, achieving quick turnarounds and charging separately for extras such as bags, seats and food.
What is a hybrid airline?
A hybrid airline combines features of low-cost and full-service models – for example, offering low base fares alongside optional premium seating, lounges or connecting flights.
What is the largest low-cost airline in Europe?
Ryanair is Europe’s largest airline by passenger numbers, carrying around 200 million passengers in its 2025 financial year.
To conclude: Types of airlines
This article has explained the three main types of airlines found in commercial aviation. If you found it useful, these articles may also be of interest:
- Types of hotels | Understanding tourism
- Types of tourism: A Glossary
- Types of tourist destinations | Understanding tourism
- Types of air transport
- Types of tourist attractions | Understanding tourism
- What is an airline reservation system?
- What are the categories of airline ancillary revenue?
- Types of accommodation | Made simple
