Domestic Airlines in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 48111bRevenue
$185.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
552k
Businesses
400
Wages
$XX.Xbn
Domestic Airlines in the US industry analysis
The US airline industry faced a severe decline in revenue due to stringent travel restrictions and lockdowns that had been initially imposed by governments during the COVID-19 pandemic, causing companies to teeter on the edge of bankruptcy. The financial uncertainty was temporarily alleviated by a substantial stimulus package from the Department of the Treasury, allowing airlines to survive until the restrictions eased. As pandemic conditions gradually improved, travel regulations were lifted and there was a notable boom in domestic tourism and air travel. This pent-up demand led to a surge in airline revenues for two consecutive years after business activity resumed. However, this momentum in growth was soon dampened by soaring inflation and the subsequent elevated borrowing costs. These effects reduced consumer disposable income and shifted travel preferences toward more economical options, thereby slowing the industry’s recovery. Revenue has been increasing at a CAGR of 0.3% in the current period and is anticipated to reach $185.3 billion in 2024, when revenue is expected to grow 1.1%.
Trends and Insights
- The easing of pandemic restrictions led to a surge in airline revenue in two consecutive years. Travel demand bounced back and consumers eagerly resumed activities, boosting the airline industry's financial recovery.
- Densely populated cities have supported the recovery of mainline passenger routes during the postpandemic travel rebound. Major airlines use large aircraft to capitalize on high demand, maximizing revenue per flight between major cities.
- California's many densely populated cities make it a prime location for domestic airlines. Its vast airport infrastructure and multiple airport hubs enhance connectivity and facilitate regional air traffic.
- High capital intensity and regulatory oversight keep new airlines from entering the market. Costs related to operating a fleet, securing financing and complying with stringent regulations make it difficult for new entrants to compete on the basis of price.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.3 % over the past five years, to reach an estimated $185.3bn in 2024.
Trends and Insights
Easing of the pandemic restrictions resulted in skyrocketing revenue
- During the early stages of the pandemic, governments restricted travel and mandated stay-at-home orders. These regulations significantly impacted airlines that depend on travel.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Expected recoveries in consumer sentiment and disposable income are set to benefit airlines
- With the anticipated rise in consumer sentiment and disposable income in the current year, travelers will likely show renewed enthusiasm for booking trips. Airlines are poised to seize the opportunity to boost bookings by offering attractive fare options and enhancing their services to further entice customers.
Biggest companies in the Domestic Airlines in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Delta Air Lines, Inc. | 44,738.6 | 4,311.1 | 9.6 | |
American Airlines Group Inc. | 35,302.8 | 1,707.3 | 4.8 | |
United Airlines Holdings, Inc. | 32,328.4 | 2,409.2 | 7.5 |
To view the market share and analysis for all 8 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 Mainline passenger transportation, Regional passenger transportation and Cargo transportation. Mainline passenger transportation is the largest segment of the Domestic Airlines in the US.
Trends and Insights
Densely populated cities support the recovery of mainline passenger routes
- Mainline aircraft traditionally have more than 100 seats and can travel longer distances. This higher capacity is particularly useful for trips between large cities, allowing the airline to maximize revenue per flight by accommodating more people.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Rail Transportation in the US
- Ocean & Coastal Transportation in the US
- Couriers & Local Delivery Services in the US
Complementors
- Aircraft, Engine & Parts Manufacturing in the US
- International Airlines in the US
- Charter Flights in the US
- Airport Operations in the US
- Travel Agencies in the US
International industries
- Global Airlines
- Global Cargo Airlines
- Scheduled Air Transportation in Canada
- Domestic Airlines in Australia
- Airlines in New Zealand
Table of Contents
About this industry
Industry definition
This industry provides domestic air transportation for passengers and cargo along regular routes and schedules. Network carriers operate a significant portion of their flights using at least one hub through which connections are made for flights on a spoke system. Regional carriers provide service to and from small cities, mostly using smaller aircraft and jets to support the network carriers’ hub and spoke systems. Airlines that transport mail are included in this industry.
What's included in this industry?
Mainline passenger transportation Regional passenger transportationCargo transportationCompanies
Delta Air Lines, Inc.American Airlines Group Inc.United Airlines Holdings, Inc.Purchase this report to view all 8 major companies in this industry.
Related Terms
HUBREVENUE PASSENGER MILESREVENUE TON MILESCODE SHARINGMAINLINEIndustry Code
NAICS 481111 - Domestic Airlines in the US
Performance
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 easing of pandemic restrictions led to a surge in airline revenue in two consecutive years. Travel demand bounced back and consumers eagerly resumed activities, boosting ...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Densely populated cities have supported the recovery of mainline passenger routes during the postpandemic travel rebound. Major airlines use large aircraft to capitalize on h...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
California's many densely populated cities make it a prime location for domestic airlines. Its vast airport infrastructure and multiple airport hubs enhance connectivity and ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
High capital intensity and regulatory oversight keep new airlines from entering the market. Costs related to operating a fleet, securing financing and complying with stringen...
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 2019-2024
- 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
Large airlines face barriers when looking to increase market share. The Department of Justice actively prevents mergers and partnerships in the Domestic Airlines industry tha...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Delta Air Lines, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of American Airlines Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of United Airlines Holdings, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Delta Air Lines, Inc., and factors influencing its performance in the industry
- Description and key data for American Airlines Group 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 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Essential Air Service (EAS) Program ensures that smaller, rural communities remain connected to the National Air Transportation System by subsidizing airlines. This suppo...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
High union participation rates and pilot and crew shortages in recent years have contributed to elevated wage costs, making labor one of the largest expenses for domestic airl...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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 Domestic Airlines in the US industry in United States in 2024?
The market size of the Domestic Airlines in the US industry in United States is $185.3bn in 2024.
How many businesses are there in the Domestic Airlines in the US industry in 2024?
There are 400 businesses in the Domestic Airlines in the US industry in United States, which has grown at a CAGR of 2.4 % between 2019 and 2024.
Has the Domestic Airlines in the US industry in United States grown or declined over the past 5 years?
The market size of the Domestic Airlines in the US industry in United States has been growing at a CAGR of 0.3 % between 2019 and 2024.
What is the forecast growth of the Domestic Airlines in the US industry in United States over the next 5 years?
Over the next five years, the Domestic Airlines in the US industry in United States is expected to grow.
What are the biggest companies in the Domestic Airlines in the US market in United States?
The biggest companies operating in the Domestic Airlines market in United States are Delta Air Lines, Inc., American Airlines Group Inc. and United Airlines Holdings, Inc.
What does the Domestic Airlines in the US in United States include?
Mainline passenger transportation and Regional passenger transportation are part of the Domestic Airlines in the US industry.
Which companies have the highest market share in the Domestic Airlines in the US in United States?
The company holding the most market share in United States is Delta Air Lines, Inc..
How competitive is the Domestic Airlines in the US industry in United States?
The level of competition is high and increasing in the Domestic Airlines in the US industry in United States.
