People Express Airlines, stylized as PEOPLExpress, was a pioneering low-cost airline in the United States that operated from 1981 until its merger with Continental Airlines in 1987. Founded by Don Burr and several others who resigned from Texas International Airlines, People Express aimed to offer affordable air travel by unbundling services and charging passengers only for what they used.
The airline launched on April 30, 1981, with flights from Newark Liberty International Airport to Buffalo, Columbus, and Norfolk using Boeing 737 aircraft. By December 1981, People Express had expanded its route network to include destinations like Baltimore, Boston, Jacksonville, and Cleveland. One of its most notable achievements was the introduction of non-stop flights from Newark to London's Gatwick Airport in 1983, using a leased Boeing 747-227B.
People Express was known for its simplified fare structure, where all seats on a route were offered at the same price, except for slightly lower "off-peak" fares. Passengers paid for checked bags, food, and beverages separately, making it the first U.S. airline to charge a fee for each checked bag. This unbundled approach helped keep ticket prices low and attracted budget-conscious travellers.
The airline also had a unique workforce model, making employees owners of the airline and maximizing productivity rates. Pilots helped load luggage, and sales personnel assisted at check-in counters, contributing to one of the highest employee productivity rates in the industry.
Despite its initial success, People Express faced financial troubles after acquiring Frontier Airlines in 1985 and straying from its low-cost roots. The airline targeted higher-end business travellers, which led to increased costs and operational challenges. In 1987, People Express merged with Continental Airlines, marking the end of its independent operations.
People Express Airlines left a lasting legacy in the airline industry by demonstrating the viability of low-cost air travel and influencing the business models of future budget carriers. Its innovative approach to pricing and employee engagement set a precedent for the industry, even though the airline itself was short-lived.
In 2013, People Express Airlines attempted a comeback, the airline, originally founded in 1981 and known for its low-cost model, aimed to relaunch under the same brand name but the revival faced several challenges.
The new People Express planned to operate out of Newport News/Williamsburg International Airport in Virginia, using a fleet of Boeing 737-400 aircraft, the company initially intended to acquire XTRA Airways, a small charter airline, to expedite the certification process with the U.S. Department of Transportation (DOT). That plan didn't seem to move forward and was put on hold, instead, People Express partnered with Vision Airlines to get the necessary regulatory approvals
Despite these efforts, the relaunch faced financial difficulties and operational hurdles, the carrier struggled to complete the certification requirements and secure sufficient funding and the revival of People Express was short-lived, and the airline did not achieve the success of its original incarnation.