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

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...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

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 Report - Industry Investment Chapter

    The Domestic Airlines industry has a moderate level of capital intensity, as operators are highly reliant on both capital investment and labor inputs, though expenditure on wages typically accounts for a greater share of the industry's total revenue than capital. In fact, industry operators are expected to spend $0.25 on capital investments for every dollar spent on wages in 2017. Common labor expenses in this industry include the wages and salaries paid to pilots, crew members, ground staff and administrative staff, and the average industry wage is $68,903.43 per person, per year in 2017. This relatively high wage reflects long working hours and the industry's strong union representation.At the same time, acquiring and maintaining aircraft requires substantial investment. Mor...purchase to read more.

    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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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
    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
    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

  • 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
    Table: Industry Data for the Domestic Airlines Industry
  • 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
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Domestic Airlines provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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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