Rough landing: Foreign competition and overcapacity have forced operators to slash ticket prices

IBISWorld’s industry research report on International Airlines can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.


Industry Threats & Opportunities

  • The industry has declined despite rising levels of per capita disposable income and increased travel activity
  • Volatility in demand for the industry's cargo transportation services has led to chronic overcapacity
  • As the size of the global middle class increases, demand for industry services is forecast to rise
  • Industry Analysis & Industry Trends

    The International Airlines industry has taken off over the past five years. The industry returned to growth in 2010 and has grown in each subsequent year as the recovery of the economy encouraged both consumers and businesses to increase demand for air travel services. The industry is expected to experience heightened competition over the following five years. Inbound tourists will continue to represent a crucial and growing source of revenue for the industry due to the increasing number of tourist and business trips to the United States. Much of this increased travel will occur on US international airlines, boosting industry revenue.

    Industry Report - Starting a New Business Chapter


    Start-up costs, which include hangar and airfield space, skilled labor, highly specialized machinery and adherence to stringent safety requirements, are extremely high for operators in this industry. Moreover, having a network alliance, a wide network of industry contacts, a proven safety record and the demonstrated ability to deliver projects on time and on budget, are essential to succeed in this industry. As a result, new entrants could struggle to win business even after massive initial capital outlays. Existing major players can use economies of scale to win business by consistently undercutting smaller players on price and speed of delivery (which ultimately improves their industry reputation). It

    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 Per capita disposable income and World price of crude oil in the International Airlines industry impact industry performance..

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    Industry Products

    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

    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
  • Per capita disposable income
  • World price of crude oil
  • International trips by US residents
  • Corporate profit
  • Inbound trips by non-US residents

  • 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

  • Products & Markets
    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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities, depreciation and marketingOther
  • 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
    Major Companies
    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

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
  • 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.
  • 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 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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