A low cost airline is also known as low-cost carrier or a discount carrier or no-frills. These airlines usually have cheap airfare than the normal traditional passenger services. The concept of offering cheap airfare ticket originated in the U.S. In early 1990s, it spread to Europe and the concept of granting cheap airfare subsequently spread to the rest of the world.

"Pacific Southwest Airlines" is the first successful low-cost airline of United States which started its operation on May 6, 1949. The most famous low cost carriers offering cheap airfare ticket in Europe are "Ryanair" and "Easy jet".

Airlines offering cheap airfare ticket are alarmed a serious threat to traditional airlines service, since the high cost structure of traditional full-service carriers put them out of action with the carriers offering cheap airfare especially due to the most important factor, the cost. During the period 2001 to 2003 when the aviation industry was rocked by SARS, war and terrorism, the flights with cheap airfare ticket stayed profitable while the traditional airlines suffered a huge loss.

Cheap Airfares have changed the way of travel. It is really interesting to know that the taxi fare to the airport is more than the actual flight fare for traveling to a new land. Cheap airfare has made any business class to have a comfortable journey to any destination.