Article at a glance:

Hyped hopes for Europe's low-cost airlines

Low-cost airlines are everybody's favorite success story in Europe these days. While flag carriers suffer, Ryanair and easyJet are boasting impressive operating margins and placing substantial orders for new airplanes. Will this British phenomenon conquer the Continent and eventually dominate European short-haul air travel?

The take-away

Not likely. Over the next five years, low-cost airlines could double their modest market share. But structural limitations and competitive challenges cloud their longer-term growth prospects.