In Germany Lufthansa now has 12 low-cost competitors on domestic routes.
It also appeared to be willing to accept the lower price due to the pressure it puts on higher cost competitors, notably the growing shale oil business in the US.
It came just hours after Alitalia's board presented a revised business plan that it said included "sharp reductions" in operating costs as well as unspecified cuts to its medium-haul operations, which face fierce competition from low-cost competitors like Ryanair and EasyJet on European routes, as well as from high-speed rail in the domestic market.
Qantas has seen yields on its revenue eroded as it battles lower-cost competitors at home, mainly Virgin Australia, while on long-haul overseas routes it faces ongoing challenges from rival Asian and European carriers.
With scant competition from low-cost competitors internationally, airlines can charge higher fares on such routes.
For the year through March, it lost $348 million on short-haul flights, largely because of low-cost competitors, said Martin George, the airline's director of marketing.
As a result, the company has had to raise prices to offset higher costs but with shoppers increasingly making purchase decision based on price, Campbell risks losing market share to lower-cost competitors and private-label brands.
It has sued them on the ground that they are colluding to keep low-cost competitors out a charge both firms deny.
"They are being hit on all sides -- both by the bigger network competitors and smaller, lower-cost competitors," said Raymond E. Neidl, an airline analyst at ABN Amro Securities.
TODAY'S Wall Street Journal reports on why older airlines are struggling to match the fares offered by their newer, low-cost competitors.
There were labor problems and low-cost competitors.
