Prepare for takeoff: Rising disposable income will fuel increased passenger travel, boosting revenue

The International Airlines industry has declined over the past five years despite rising levels of per capita disposable income and increased travel activity both into and out of the United States. In recent years, mounting competition from government-subsidized foreign competitors and chronic overcapacity within the industry's cargo transportation segment have forced industry operators to slash ticket prices and reduce freight shipping rates, causing industry revenue to decline. Moreover, substantial declines in the world price of crude oil caused the price of jet fuel to plummet during the five-year period, preventing operators from generating revenue through fuel surcharge fees...purchase to read more.

Industry Statistics & Market Size
Revenue
$64bn
Annual Growth 12-17
-0.4%
Forecast Growth 17-22
Profit
Employment
134,464
Businesses
749

Industry Threats & Opportunities

  • Industry revenue is expected to recover amid continued growth in disposable income, corporate profit and US travel activity
  • Volatility in demand for the industry’s cargo transportation services has led to chronic overcapacity
  • An increase in business spending is forecast to bolster industry growth
  • Industry Report - Industry Investment Chapter

    The International Airlines industry is characterized by a moderate level of capital intensity, as operators are highly reliant on both capital investment and labor inputs. In 2017, industry operators are expected to spend $0.25 on capital investments for every dollar spent on labor costs. These labor expenses include the wages and salaries paid to pilots, crew members, ground staff and administrative staff. The average annual wage for workers in this industry is relatively high and is expected to total $87,846 in 2017. This wage reflects long working hours, the extended time a crew member spends away from his or her home and family and the industry's strong union representation. At the same time, substantial amounts of capital are required to purchase and operate an airline. Man...purchase to read more.

    Additional Insights for the International Airlines Industry

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

  • Optimum capacity utilization
  • Prompt delivery to market
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Inbound trips by non-US residents and International trips by US residents in the International Airlines industry impact industry performance..

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    What's in this report

    What is the International Airlines Industry?

    The International Airlines industry provides air transportation to passengers and cargo over regular routes and schedules. These services include any flights that either end or originate internationally. Scheduled air passenger carriers, including commuter and helicopter carriers (except scenic and sightseeing), are included in this industry. Airlines that provide international mail transportation on a contract basis are also included in this industry.

    Industry Products
  • Passenger transportation: coach class
  • Passenger transportation: first- and business-class
  • Cargo transportation
  • Industry Activities
  • Scheduled international passenger air transport
  • Scheduled international cargo and freight air transport (except air couriers)
  • Scheduled commuter international passenger air transport
  • Scheduled charter international passenger 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
  • Inbound trips by non-US residents
  • International trips by US residents
  • World price of crude oil
  • Corporate profit
  • Per capita disposable income

  • Current Performance
  • Rising demand
  • Fuel prices, capacity and competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving revenue prospects
  • Expanding profit margins
  • Limited industry participation
  • Table: International Airlines Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Freight Forwarding Brokerages & Agencies
  • Couriers & Local Delivery Services
  • Tourism

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

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

  • Demand Determinants
  • Leisure and business
  • Cargo

  • Major Markets
  • Leisure travelers
  • Freight transport markets
  • Business travelers
  • Student travelers
  • Chart: Major Market Segmentation for the International Airlines Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities, depreciation and marketing
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs International Airlines

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the International Airlines Industry

  • Industry Globalization
    United Continental Holdings Inc., American Airlines Group Inc., Delta Air Lines Inc.,
  • Table: United Continental Holdings Inc. - financial performance
  • Table: American Airlines Group Inc. - financial performance
  • Table: Delta Air Lines Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the International 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 International Airlines Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • International 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
    Cargo
  • Goods or produce transported, generally for commercial gain.
  • Code-Sharing Agreement
  • An agreement between two airlines to share the same flight; a seat can be purchased on one airline but is actually operated by a cooperating airline under a different flight number or code.
  • Hub-And-Spoke System
  • A system of air transportation in which local airports offer air transportation to a central airport where long-distance flights are available.
  • Load Factor
  • The ratio of the lift on an aircraft to the weight of the aircraft.
  • Mainline Air Travel
  • A commercial passenger plane that flies long distances and carries a large number of persons.
  • Open Skies Agreement
  • An international agreement under which two or more countries allow unrestricted overflight and landing rights to one another.
  • What Our Customers Say

    Why buy this report?

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    This report on International 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 International 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

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