For years, it's been evident that smaller airlines have had an operating advantage, particularly when they use less expensive airports. They've been able to post better numbers as a result, and in the current travel slump, they've outperformed the larger carriers. Well, they've also picked up a considerable amount of market share.

According to a report by USA Today, low cost carriers now have 30% of the market in the United States. Price-sensitive consumers are turning to cheaper alternatives, even if it means (for fliers with elite status) giving up the perks they've earned through years of customer loyalty.

The US Airways (NYSE: LCC) ticker symbol says it all: LCC = Low Cost Carrier. With its latest announcement, the airline may want to change it to LEC -- Low Expense Carrier. In an attempt to keep pace with the plunging travel market, US Airways is cutting 1,000 jobs next year, shoving almost all its flying to its three hubs (Philadelphia, Phoenix and Charlotte) and Washington. Several international routes are being cut.

The airline reports that routes from its hubs have been profitable. Currently, US Airways pushes 93% of its flights through these airports, a rate it seeks to push up to 99% in 2010.

Passenger annoyance has been on the rise over the past year, as airlines have found new and unusual fees to charge passengers. European low-cost carrier Ryanair (NASDAQ: RYAAY) has been at the tip of the spear, at one point considering a charge for access to the lavatory. The hidden secret in all this is that it works.

Ryanair's latest fee is nothing short of brilliant. The airline is now slapping customers with a €10 ($14) charge for printing boarding passes at home ... and €40 ($55) to do so at the airport. Since there's no other way to get your boarding pass, this translates to a minimum fee of $14 per flight (with a few small exceptions). Given the company's price advantage in the short-haul European space, the move is unlikely to drive passengers to competitors.

One of the first things I thought of when my husband and I made a whirlwind move from St. Louis to Chicago this month is that I'm finally in a JetBlue Airways (NASDAQ: JBLU) market and can see what the fuss is all about. I hear rumors of low fares, cushy seats, and personal media players for every seat.

Apparently, things are looking good from inside the company as well. The low-cost carrier returned to the black in its latest third-quarter, posting net income of $23 million, or 12 cents per share. This figure compares with a year-ago loss of $500,000 (roughly 0 cents per share). The numbers were a nickel above Wall Street's consensus view of 7 cents per share, according to estimates compiled by Reuters.

Revenue rose 22% during the quarter to $765 million, falling just shy of analysts' expectations of $767 million. Traffic during the reporting period jumped 13% higher to 6.86 billion revenue passenger miles, and capacity rose 11%. Load factor -- the percentage of seats filled -- rose to 82% from 80.4% last year.