Which statement best describes the fare structure of ultra low-cost carriers?

The fare structure of ultra low-cost carriers (ULCCs) is characterized by a base fare that typically excludes most extras. This model allows ULCCs to offer very low initial ticket prices, appealing to budget-conscious travelers. The strategy is designed to keep base fares low while charging additional fees for various services such as checked baggage, seat selection, and onboard refreshments. This unbundling of services means that customers can choose to pay only for the services they wish to use, which aligns with the ULCC business model focused on cost efficiency.

Other options do not accurately reflect the ULCC fare structure. Fixed pricing that includes all services would contradict the ultra low-cost approach, as it does not allow for the flexibility or transparency that ULCCs promote. High fares with numerous included benefits are more indicative of traditional carriers, which often position themselves in contrast to the ULCC model by offering a broader range of included services. Lastly, while loyalty programs may exist within the industry, they are typically not a significant feature of ULCCs, as these airlines focus on providing the most economical base fares rather than emphasizing loyalty benefits or extensive program structures.