Overview

In plane sight: Revenue will grow as consumer sentiment and disposable income levels rise

IBISWorld’s Domestic Airlines Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The Domestic Airlines industry is projected to continue growing over the next five years
  • Rising disposable income levels and increases in services offered will support industry revenue growth
  • Industry Analysis & Industry Trends

    The Domestic Airlines industry has expanded over the past five years, as rising levels of per capita disposable income, consumer confidence and total corporate profit have bolstered demand from both business and leisure travelers. At the same time, price competition within the industry has intensified in recent years as low-cost airlines continue to siphon passengers from industry leaders through no-frills service options. Moreover, recent declines in the world price of crude oil have caused the price of jet fuel to plummet, preventing many operators from generating revenue through fuel surcharge fees. Overall, industry revenue is estimated to increase over the five years to 2017.

    Industry Report - Industry Key Buyers Chapter

    The Domestic Airlines industry has a high level of concentration, and the top five industry players are estimated to hold a combined market share of 79.0% in 2017. This is a significant increase from 2012, when the top five major players accounted for 70.0% of the industry's total revenue. Concentration has been on the rise due to consolidation in the industry. For example, American Airlines and US Airways agreed to merge in 2013, creating the industry's largest player in terms of revenue. However, the level of concentration is not expected to increase significantly over the next five years, since any proposed merger between airlines is likely to garner significant attention from the Department of Justice and unlikely to be approved given the current level of concentration.

    Additional Insights for the Domestic Airlines Industry

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

  • Optimum capacity utilization
  • Prompt delivery to market
  • Well developed internal processes
  • IBISWorld analysts also discuss how external factors such as Domestic trips by US residents and Per capita disposable income in the Domestic Airlines industry impact industry performance..

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    Industry Products

    What is the Domestic Airlines Industry?

    The industry provides domestic air transportation for passengers and cargo over regular routes and on regular schedules. Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system. Regional carriers provide service from small cities, mostly using smaller aircraft and jets to support the network carriers’ hub and spoke systems. Airlines that transport mail are included in this industry.

    Industry Products
    Passenger transportation: coach class
    Passenger transportation: first and business class
    Cargo transportation
    Industry Activities
    Scheduling domestic air transport
    Scheduling domestic cargo and freight air transport (excluding air couriers)
    Transporting commuter domestic passengers
    Transporting charter domestic passengers
    Scheduling domestic mail air transport

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Domestic trips by US residents
  • Per capita disposable income
  • Corporate profit
  • Inbound trips by non-US residents
  • World price of crude oil

  • Current Performance
  • Improving demand conditions
  • Fuel prices and profit margins
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising demand
  • Profitability and consolidation
  • Employment trends
  • Table: Domestic Airlines Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Domestic Airlines Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Freight Forwarding Brokerages & Agencies
  • Public Administration
  • Couriers & Local Delivery Services
  • Consumers

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul
  • Aircraft, Engine & Parts Manufacturing
  • Aircraft, Marine & Railroad Transportation Equipment Wholesaling
  • Airport Operations
  • Gasoline & Petroleum Wholesaling

  • Products & Services
  • Passenger transportation: coach class
  • Passenger transportation: first and business class
  • Cargo transportation
  • Other
  • Chart: Domestic Airlines Industry Products and Services Segmentation

  • Demand Determinants
  • Leisure travel
  • Business travel
  • Cargo transportation

  • Major Markets
  • Leisure travelers
  • Business travelers
  • Freight and mail markets
  • Chart: Major Market Segmentation for the Domestic Airlines Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Domestic Airlines

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

  • Industry Globalization
    Major Companies
    American Airlines Group Inc.Delta Air Lines Inc.United Continental Holdings Inc.Southwest Airlines Co.
  • Table: American Airlines Group Inc. - financial performance
  • Table: Delta Air Lines Inc. - financial performance
  • Table: United Continental Holdings Inc. - financial performance
  • Table: Southwest Airlines Co. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Domestic Airlines Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Domestic Airlines Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Domestic Trips by US Residents (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Code-Sharing
  • Code-sharing involves one or more airlines using their designator codes to process bookings and sell tickets on flights operated by another carrier.
  • Hub
  • An airport that an airline uses as a transfer point to get passengers to their intended destination.
  • Revenue Passenger Miles
  • A measure calculated using the total number of revenue-paying passengers aboard a vehicle by the distance traveled measured in miles.
  • Revenue Ton Miles
  • A measure of freight traffic onboard an aircraft, calculated using the total weight of the cargo aboard the vehicle by the distance traveled measured in miles.
  • Why buy this report?

    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 Domestic Airlines:
    • 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 Domestic Airlines 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 Domestic Airlines, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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