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
Annual Growth 12-17
Forecast Growth 17-22

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 Products Chapter

    Passenger transportationPassenger transportation is the main service offered by international airlines, accounting for an estimated 83.5% of industry revenue in 2017. More specifically, 57.4% of total industry revenue is earned through coach travel, while 26.1% of the industry's total revenue will be generated through business and first-class travel. Mainline carriers are flag carriers that have large and well-developed home markets. These carriers also have the ability to exploit open skies agreements through global alliances, and major passenger airlines generally focus on long-haul flights between and beyond their alliance's main hubs. 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
  • 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
  • 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?

    IBISWorld’s International 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.

    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
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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

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

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