Global Airlines - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
H4831-GLRevenue
$762.8bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
3m
Businesses
5,077
Wages
$XXX.Xbn
Global Airlines industry analysis
Despite rising levels of airborne passenger and cargo traffic throughout much of the period, revenue for the Global Airlines industry has declined over the five years to 2023 as volatile fuel prices and growing competition, as well as COVID-19, have placed downward pressure on industry revenue. At the same time, recent growth in global per capita income and other solid macroeconomic indicators fueled demand for airline passenger transportation before the pandemic. Overall, industry revenue is estimated to decrease an annualized 3.8% to $762.8 billion over the five years to 2023, despite an expected expansion of 5.3% in 2023 alone, stemming from an anticipated rise in global tourist arrivals.The COVID-19 pandemic had a devastating impact on the global airlines industry. The number of passengers flying internationally fell 80.0%, and the number of domestic passengers fell 50.0%. The pandemic has accelerated some trends in the airline industry, like the growth of low-cost carriers and the increased use of technology. Airlines also invest in new technologies, like sustainable fuels and artificial intelligence, to reduce operating costs and become more efficient. Industry profit, measured as earnings before interest and taxes, is expected to account for 2.8% of revenue in 2023.Moving forward, the global airlines industry is anticipated to return to growth, fueled by rising disposable incomes in emerging markets, the growth of low-cost carriers, and the development of new technologies. Low-cost carriers are expected to grow in popularity over the next five years. These airlines offer lower fares by cutting back on amenities and services. They are particularly popular with price-sensitive travelers, like students and young professionals. Airlines are increasingly using technology to improve the passenger experience. This includes online check-in, baggage tracking, and in-flight entertainment. Airlines also use technology to improve their operational efficiency, like predictive analytics, to optimize flight schedules. Ultimately, industry revenue is expected to increase an annualized 3.3% to $895.1 billion over the five years to 2028.
Trends and Insights
- The industry is recovering, but it is not yet back to pre-pandemic levels. The International Air Transport Association (IATA) expects the industry to return to profitability in 2023, but it will take several years for the industry to fully recover.
- Low-cost carriers are becoming increasingly popular, as they offer lower fares by cutting back on amenities and services. This is putting pressure on traditional full-service airlines, which are having to reduce their costs in order to compete.
- Airlines base operations near highly transited airports. This gives them access to the largest number of passengers at a given time.
- The growth of low-cost carriers is putting pressure on major airlines. Low-cost carriers offer lower fares by cutting back on amenities and services. This is making it difficult for major airlines to compete on price.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 3.8 % over the past five years, to reach an estimated $762.8bn in 2023.
Trends and Insights
COVID-19 stunted revenue growth, but the industry has begun to recover
- According to the International Air Transport Association, global airline traffic (measured by revenue passenger kilometers) declined 66.0% in 2020 and 58.0% in 2021 compared to 2019.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The global airlines landscape is anticipated to shift
- Pent-up demand for travel and an estimated rise in global disposable income are likely to fuel growth for airlines over the next five years.
Biggest companies in the Global Airlines
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
American Airlines Group Inc. | 54,819.2 | 854.0 | 1.6 | |
Delta Air Lines Inc. | 54,366.7 | 2,546.0 | 4.7 | |
United Airlines Holdings Inc. | 48,775.0 | 1,598.0 | 3.3 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cargo transportation, Domestic passenger transportation and International passenger transportation. Cargo transportation is the largest segment of the Global Airlines.
Trends and Insights
Domestic and international passenger transportation is recuperating from the COVID-19 pandemic
- Domestic passenger transportation involves the movement of passengers by air within the boundaries of a single country. International passenger transportation pertains to the movement of passengers by air between different countries.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Global Cargo Airlines
Complementors
- Global Hotels & Resorts
- Global Travel Agency Services
- Global Airport Operation
- Global Tourism
International industries
- International Airlines in the US
- Domestic Airlines in the US
- Scheduled Air Transportation in Canada
- International Airlines in Australia
- Domestic Airlines in Australia
Table of Contents
About this industry
Industry definition
The Global Airlines industry includes airlines that transport passengers over scheduled or nonscheduled routes, both domestically and internationally. Cargo that is transported within passenger aircraft is also included in this industry, though dedicated cargo airlines are excluded from this industry.
What's included in this industry?
Cargo transportationDomestic passenger transportationInternational passenger transportationCompanies
American Airlines Group Inc.Delta Air Lines Inc.United Airlines Holdings Inc.Purchase this report to view all 6 major companies in this industry.
Related Terms
IATACODE-SHARING AGREEMENTOPEN-SKIES AGREEMENTPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry is recovering, but it is not yet back to pre-pandemic levels. The International Air Transport Association (IATA) expects the industry to return to profitability ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Low-cost carriers are becoming increasingly popular, as they offer lower fares by cutting back on amenities and services. This is putting pressure on traditional full-service...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Airlines base operations near highly transited airports. This gives them access to the largest number of passengers at a given time.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Business Locations Charts
- Share of global output by region in 2023
- Share of population compared to output in each region in 2023
- Data tables
- Share of global output by region in 2023
- Detailed analysis
- Geographic spread of the industry across Global, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The growth of low-cost carriers is putting pressure on major airlines. Low-cost carriers offer lower fares by cutting back on amenities and services. This is making it diffic...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Airlines aim to become reduce their environmental impact. Major airlines make efforts to become more sustainable by using sustainable fuel and purchasing more fuel-efficient ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of American Airlines Group Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Delta Air Lines Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of United Airlines Holdings Inc. 's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for American Airlines Group Inc., and factors influencing its performance in the industry
- Description and key data for Delta Air Lines Inc., and factors influencing its performance in the industry
- Description and key data for United Airlines Holdings Inc. , and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Higher oil prices enable airlines to increase airfare, driving revenue growth. Companies can pass down cost increases to customers through rises in airfare, resulting in high...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Maintenance costs are also considered purchases. Maintenance expenses include the cost of expendable aircraft spare parts, maintenance to repairable aircraft components, cont...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources globally include:
- United Nations Comtrade
- Organization for Economic Cooperation & Development
- World Bank
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Global Airlines industry in Global in 2024?
The market size of the Global Airlines industry in Global is $762.8bn in 2024.
How many businesses are there in the Global Airlines industry in 2023?
There are 5,077 businesses in the Global Airlines industry in Global, which has declined at a CAGR of 4.3 % between 2018 and 2023.
Has the Global Airlines industry in Global grown or declined over the past 5 years?
The market size of the Global Airlines industry in Global has been declining at a CAGR of 3.8 % between 2018 and 2023.
What is the forecast growth of the Global Airlines industry in Global over the next 5 years?
Over the next five years, the Global Airlines industry in Global is expected to grow.
What are the biggest companies in the Global Airlines market in Global?
The biggest companies operating in the Global Airlines market in Global are American Airlines Group Inc., Delta Air Lines Inc. and United Airlines Holdings Inc.
What does the Global Airlines in Global include?
Cargo transportation and Domestic passenger transportation are part of the Global Airlines industry.
Which companies have the highest market share in the Global Airlines in Global?
The company holding the most market share in Global is American Airlines Group Inc..
How competitive is the Global Airlines industry in Global?
The level of competition is high and increasing in the Global Airlines industry in Global.
