Airlines Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 9/18/2017
SIC Codes: 4512
NAICS Codes: 4811
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
View Full Sample Add To Cart

Excerpt from Airlines Industry Profile

Companies in this industry provide scheduled domestic and international passenger transportation, as well as mail and freight transportation. Major US companies include American Airlines, Delta, FedEx, Southwest, and United; leading companies based outside the US include Air France-KLM, China Southern Air, Deutsche Lufthansa, Emirates Group, and International Airlines Group.

Worldwide, the airline industry generates more than $700 billion in revenue annually. The number of air travelers is expected to grow to about 4 billion in 2017, from about 3 billion in 2012, according to the International Air Transport Association. Top regions for passenger growth include the emerging economies of Africa, Asia/Pacific, Latin America, and the Middle East.

The US airline industry includes about 2,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $185 billion.

COMPETITIVE LANDSCAPE

Airline demand depends highly on the health of the economy, which affects spending on business and leisure air travel. Because many costs are fixed, the profitability of individual companies is determined by efficient operations and on favorable fuel and labor costs. Large companies enjoy economies of scale in purchasing and the ability to provide more extensive services. Small airlines can compete by serving local or regional routes.

The high capital requirements of the airline industry severely limit the number of participants. The US industry is highly concentrated: the four largest companies account for more than 60% of industry revenue.

Major network ...

 
View Full Sample Add To Cart Return to the Industry Profile Menu

Would you or your company benefit from having unlimited access to First Research's industry intelligence tools?

Learn More About Subscription Options