On the wing: As the economic environment prospers industry demand is anticipated to grow

The Charter Flights industry is flying high over the five years to 2018, following growth in demand from downstream markets. Since 2013, demand for nonscheduled air transport services grew as the broader economy continued to grow, corporate profit reached record highs and per capita household income increased. Demand for private charters has grown over the past few decades due to rising disposable incomes and demand for more-personalized services. Demand has also been fueled by jet cards, which are offered by a range of companies. The industry's growth is expected to continue over the next five years to 2023, driven by higher per capita income and corporate profit...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Demand for private charters has grown due to rising disposable incomes and demand for more-personalized services
  • increased demand over the past five years and low oil prices during the latter half of the period have kept profitability up
  • Revenue growth will depend on operators' abilities to capitalize on their strengths of flexibility, luxury and convenience
  • Industry Report - Industry Investment Chapter

    In 2018, IBISWorld estimates that for every $1.00 spent on wages and associated labor costs, operators in the Charter Flights industry spend $0.36 on the use and replacement of capital. Capital intensity in the industry has increased since 2013. The change is due to an increase in capital expenditure compared with wages since the recession. The industry is moderately labor intensive with wages currently accounting for a relatively high proportion of revenue at 15.3%.Labor expenses include the wages and salaries paid to pilots, crew members, ground staff and administrative staff. In 2018, the average industry wage is $71,420, reflecting the high skill level required for many industry positions and the strong presence of industry unions...purchase to read more.

    Additional Insights for the Charter Flights Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Charter Flights Industry are

  • Having a good reputation
  • Ability to compete on tender
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Domestic trips by US residents in the Charter Flights industry impact industry performance..

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    What's in this report

    What is the Charter Flights Industry?

    Companies in this industry provide air transport services on an irregular or nonscheduled basis for passengers and cargo, also referred to as a charter arrangement. Industry operators enable people to fly where they want (in terms of destination and airport) and when they want, as opposed to commercial airlines that operate on a fixed schedule of destinations and times. This industry also includes scenic tours and sightseeing services.

    Industry Products
  • Domestic passenger charter services
  • International passenger charter services
  • Specialty
  • Transportation of nonperishable goods
  • Transport of perishable goods
  • Sightseeing
  • Industry Activities
  • Nonscheduled passenger and cargo air transportation
  • Charter air passenger and cargo services
  • Scenic tours and sightseeing air services
  • Nonscheduled mail air transportation (except air couriers)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Domestic trips by US residents
  • Per capita disposable income
  • World price of crude oil
  • Demand from domestic airlines

  • Current Performance
  • Nonscheduled flights
  • Profit and fuel costs
  • Industry participation grows
  • Chart: Revenue Growth

  • Industry Outlook
  • Challenges exist
  • Profitability
  • Participation
  • Table: Charter Flights Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Charter Flights Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Freight Forwarding Brokerages & Agencies
  • Postal Service
  • Finance and Insurance
  • Public Administration
  • Couriers & Local Delivery Services

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul
  • Aircraft, Engine & Parts Manufacturing
  • Airport Operations
  • Gasoline & Petroleum Wholesaling
  • Heavy Equipment Rental

  • Products & Services
  • Transport of perishable goods
  • Domestic passenger charter services
  • Specialty
  • Transportation of nonperishable goods
  • International passenger charter services
  • Other
  • Sightseeing
  • Chart: Charter Flights Industry Products and Services Segmentation

  • Demand Determinants
  • Price options
  • To fly or not to fly
  • Unexpected travel problems

  • Major Markets
  • Business travel passenger
  • Domestic and international leisure passengers
  • Freight forwarders, cargo and business freight
  • Other
  • Chart: Major Market Segmentation for the Charter Flights Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Labor and capital
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Charter Flights

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Charter Flights Industry

  • Industry Globalization
    Atlas Air Worldwide Holdings Inc.,
  • Table: Atlas Air Worldwide Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Charter Flights Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Charter Flights Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Aircraft, complete crew, maintenance and insurance.
  • Air Charter
  • The business of renting an entire aircraft as opposed to individual aircraft seats.
  • Block Hour
  • The time interval between when an aircraft departs the terminal until it arrives at the destination terminal.
  • Jet Card
  • A card that gives the buyer a certain number of hours to use a private aircraft for a fee, typically about $100,000 for a minimum purchase of 25 hours.
  • Revenue Passenger Miles
  • A number calculated by multiplying the total number of revenue-paying passengers by the distance traveled measured in miles.
  • Revenue Ton-Miles
  • The measurement of freight traffic onboard an aircraft, calculated using the total weight of the cargo aboard the vehicle by the distance traveled measured in miles.
  • Wet Lease
  • A leasing arrangement where one airline (lessor) provides an aircraft, complete crew, maintenance and insurance (ACMI) to another airline (lessee) that pays by hours operated.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Charter Flights Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Charter Flights industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Charter Flights:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Charter Flights market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Charter Flights, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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