British Airways is to restart budget flights from Gatwick in March next under a new Euroflyer banner.
The airline said the new operation, which will be separate from its parent, will offer flights to 35 destinations in Europe and North Africa with flights starting at £39 each way.
British Airways will manage the operation initially, which will ramp up to 18 aircraft by the end of May 2022, with full autonomy scheduled for autumn next year under the BA Euroflyer name.
Sean Doyle, BA chief executive, said: "The creation of a new British Airways short-haul organisation means Gatwick customers will benefit from access to a premium service from the UK's flag carrier at competitive prices.
"We are looking forward to bringing a short-haul network back to Gatwick, with a fantastic flying team in place, to serve our customers from London's second hub airport, which we feel sure will be a success."
Euroflyer passengers can choose their seats 24 hours in advance, will have a generous baggage allowance and receive free water and snacks, he added.
Gatwick's chief executive, Stewart Wingate added: "This significant news will be very welcome for many people connected to the airport.”
British Airways is owned by International Consolidated Airlines Group (LSE:IAG), which saw its shares rise by 2.5% to 133.6p.