Industry Analysis & Industry Trends
The Global Airlines industry has taken off over the past five years. Airlines have exhibited positive growth since 2010. As unemployment has declined in developed economies and disposable income has risen in emerging economies, vacation and discretionary travel spending has increased. In addition, the number of business travelers, who usually pay a premium for tickets, has increased over the past five years as corporate profit has risen, which has bolstered businesses' travel budgets. Over the five years to 2020, passenger numbers are expected to rise as income levels increase worldwide and business spending ramps up. Travelers from fast-growing emerging economies will especially benefit the industry.
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Industry Key Buyers
The Global Airlines industry has a low level of concentration, with the top four industry players accounting for 20.6% of industry revenue in 2015. In spite of many mergers over the past five years, market share concentration has decreased from 22.6% in 2010. A large anticipated decline in revenue for Air France and Lufthansa, partly driven by an appreciation of the US dollar, is expected to reduce their respective market shares from 4.6% and 4.7% in 2014 to 4.1% and 3.7% in 2015. Over the past five years, market share concentration has remained between 20.5% and 23.0%.
Additionally, increasing demand from Asia and the Middle East has resulted in those countries developing their own aviation sectors... read more