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 Key Buyers
The Global Airlines industry has a low level of concentration, with the top four industry players combining for about 17.7% of industry revenue in 2013. Market share concentration has increased as a result of merger and acquisition activity. For example, in 2010, United Airlines and Continental Airlines merged to create the world's largest airline, and in 2008, Delta Air Lines and Northwest Airlines merged. Additional consolidation and mergers are expected over the next five years. For example, American Airlines and US Airways are currently attempting to merge, a move that has raised awareness at the US Department of Justice which is attempting to block the merger under antitrust provisions.
Market share concentration varies among regions and countries... read more