Industry Analysis & Industry Trends
The Global Airlines industry has taken off after suffering massive losses during the global economic downturn. Despite the large decline in revenue at the beginning of the period, industry revenue is estimated to increase at an annualized rate of 2.9% over the five years to 2013. A sense of normality has returned to the industry and revenue growth is expected to be more stable in 2013, increasing 2.8% to $711.0 billion.
Conditions have greatly improved since 2009, which was the industry's worst year in at least two decades. The easing of average airfares and declining passenger numbers during the recession resulted in decreasing revenue. The total number of global tourist arrivals declined 3.8% in 2009, with a stronger decline in international flights compared with domestic... read more
Industry SWOT Analysis
The Global Airlines industry is in the mature stage of its life cycle. Over the 10 years to 2018, industry value added, which measures an industry's contribution to the economy, is forecast to grow at an annualized rate of 3.9%. World GDP is expected to grow at a rate of 5.4% over the same period, indicating that the industry is growing slightly slower than the economy as a whole. While demand for air travel is strong in some parts of the world, like Asia, it is declining in others, such as North America. Generally, the airlines industry in developed countries is in the decline stage of its life cycle, while the same industry is in the growth phase of its life cycle in Asia, Africa and the Middle East... read more