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
Mainline carriers are the industry's largest product segment, accounting for an estimated 64.5% of industry revenue. Mainline carriers are flag carriers that have large and well-developed home markets. They also have the capacity to exploit deregulation through global alliances and acquisitions. These airlines typically generate over $1.0 billion in annual revenue and offer domestic and international flights, focusing on long-haul routes between and beyond the main alliance hubs. Many mainline carriers also have subsidiaries or affiliates – often with the same company logo – that provide regional transportation to connect passengers to major airline hubs. Once the passengers reach the hubs, mainline carriers then transport the passengers... read more