Overview

Clear skies: Revenue will grow as consumer sentiment and disposable income levels rise

IBISWorld’s Domestic Airlines market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Dropping oil prices have benefited average profit margins
  • Industry enterprises have experienced bankruptcies, consolidation and downsizing
  • Global economic conditions will help push up demand for travel to the United States

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    Industry Analysis & Industry Trends

    The Domestic Airlines industry is soaring again as consumer and business spending have increased since the recession, leading to higher travel rates. Prior to the past five years, the industry experienced its most difficult year in at least a decade in 2009, as the recession led to a collapse in demand, resulting in capacity cuts and plummeting prices. businesses trips increased as corporate profit recovered quickly from the recession. As a result, industry revenue is estimated to increase over the five years to 2016. Industry revenue is expected to continue ascending over the five years to 2021, increasing and major operators will reap synergies from their recent mergers, leading to higher profit margins...

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    Industry Report - Industry Key Buyers Chapter

    The Domestic Airlines industry has a moderate level of concentration. The top five industry players are estimated to hold a combined market share of more than 64.7% in 2016. This is a significant increase from 2011, when the top four major players held 54.5% market share. Concentration has been on the rise due to consolidation in the industry. Significant mergers occurred in 2008 and 2010. Delta Air and Northwest Airlines combined operations and nearly doubled the company's market share in 2008 and United and Continental did the same in 2010. Most recently, American Airlines and US Airways agreed to merge in 2013, creating the industry's second-largest player in terms of revenue. The level of concentration is not expected to increase significantly over the next five years. Any..

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    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 Corporate profit and World price of crude oil in the Domestic Airlines industry impact industry performance..

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    Industry Products

    What is the Domestic Airlines Industry?

    The industry provides 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
    Domestic coach passengers
    Business and first class domestic passengers
    Cargo
    Transport-related and other
    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
  • Corporate profit
  • World price of crude oil
  • Per capita disposable income
  • Domestic trips by US residents
  • Inbound trips by non-US residents

  • Current Performance
  • Fuel price trends
  • Profitability and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Stronger fundamentals
  • Profitability and consolidation
  • Future 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
  • Domestic coach passengers
  • Business and first class domestic passengers
  • Transport-related and other
  • Cargo
  • Chart: Domestic Airlines Industry Products and Services Segmentation

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

  • Major Markets
  • Direct spending on leisure travel
  • Direct spending on business travel
  • 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
  • Profit
  • Purchases
  • Buy or lease
  • Operating costs
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Domestic Airlines

  • Basis of Competition
    InternalExternal
    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 (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • World price of crude oil (2007-2021)

  • 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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