Industry Analysis & Industry Trends
The Domestic Airlines industry is soaring again as consumer and business spending have increased since the recession, leading to higher travel rates. Prior to the past five years, the industry experienced its most difficult year in at least a decade in 2009, as the recession led to a collapse in demand, resulting in capacity cuts and plummeting prices. businesses trips increased as corporate profit recovered quickly from the recession. As a result, industry revenue is estimated to increase over the five years to 2014. However, thanks to consumer confidence receding slightly from its recent high and people becoming more intent on saving rather than spending, growth in 2014 is projected to be subdued... purchase to read more
Industry Report - Industry Products Chapter
Scheduled passenger services are by far the industry's largest product segment, made up of coach class, business class and first class passengers. Coach class passengers account for the greatest share of industry revenue and the majority passenger seats on scheduled flights. Demand for coach class tickets has climbed over the past five years as passengers grow increasingly budget-conscious. Airlines specializing in low priced tickets, such as Spirit and Jet Blue, have done particularly well as consumers value low prices ahead of more leg room and inflight meals.
Business class and first class passengers, distinguished from other travel classes by the quality of seating, food, drinks and other amenities, represent a smaller share of total revenue... purchase to read more