Airline competition and domestic US airfares: A comprehensive reappraisal

► Growth of low-cost carriers (LCCs) has changed the landscape of airline competition. ► This paper offers a comprehensive picture of the competitive effects of both legacy carriers and LCCs. ► The impact of both in-market and adjacent competition is measured for both types of carriers. ► This approach is applied separately to two different types of markets: nonstop and connecting. ► Legacy competition has a weak effect on average fares and LCC competition a dramatic effect.