Budget airlines are not always the cheapest - here's what you need to know

Once it was simple to assume that if you were chasing the cheapest airfare, you booked a low-cost carrier. And the delineation seemed clear - full-service airlines were for when the budget was strong, while budget carriers promised more affordable prices as long as you packed light and understood the conditions.

But with current air travel, those old assumptions do not always fit. Today, the low-cost carrier (LCC) fare, with extras added to make a like-for-like comparison with full-service airlines, isn't necessarily the lowest final fare. Add a checked bag, choose a seat, pay for a meal and buy a blanket, and that bargain base fare can climb close to, and sometimes exceed, the price of a full-service, all-inclusive carrier ticket.

That's the case when comparing some economy international return fares in mid-February and mid-March on LCCs such as Scoot, AirAsia, Jetstar, VietJet and Cebu Pacific. On some routes, when comparing like-for-like with all the extras, the budget options sometimes end up only marginally cheaper, and possibly more, than flying full service.

Based on searches done in December for the early months of 2026, Sydney to Singapore in February shows how close things can get when the low-cost option on Scoot is actually $69 more expensive than the full-service Singapore Airlines. The Scoot fare starts from $676, but once seat selection, 20kg checked baggage, a meal and drink, blanket kit and Wi-Fi are added, it totals $870. Singapore Airlines, with the same extras and additional meals and drinks included, is $69 cheaper at $801 on Trip.com.

Sydney to Singapore in March on Scoot commences at $676, but with the extras it's $720. On full-service Qantas, it's only $17 more at $737 on BestPriceTravel.com. For Melbourne to Singapore on Jetstar in February, the starter fare is $546, but with extras including screen entertainment, it's $727. The same route and date on Singapore Airlines is $739 on BudgetAir.com - a $12 difference. AirAsia in February from Sydney to Istanbul, via KL, starts at $1449, but with the Value Pack is $1731. It's a $5 difference to fly full-service Qatar - $1736 on AuntBetty.com.

Adam Kelly, Scoot's General Manager (Australia), says an LCC fare varies on how many extras a passenger actually needs. "We're upfront that it's possible when extras are added to our base fare, the total can sometimes reach or almost be as much as full-service carriers," Kelly says. He explains a fare is dependent on factors such as how much in advance the booking is made and demand for that flight.

"With us, the important difference is choice. Our customers only pay for what they want, rather than being locked into a bundled fare that includes services they might not need."

AirAsia echoes the "choice" message. An airline spokesperson states, "AirAsia offers competitive base fares so more people can afford to travel ... and our value proposition gives guests the freedom to choose and pay only for what they need." To secure the best lower fares on an LCC is often a matter of timing. "Fares are dynamic and vary by season, demand and booking conditions, which means travellers who plan ahead or are flexible with dates can secure the best value," the AirAsia representative adds.

Flight Centre's James Kavanagh, CEO of Global Leisure, believes most passengers understand LCC unbundle fares to offer impressive starter fares. "But passengers don't always realise the full extent of the additional costs," Kavanagh says. "These can easily add hundreds of dollars to a booking and make the fare comparable or more expensive to a full service carrier's offering.