Global Airline Industry
The global airline industry expanded by 12% in 2010 to generate revenue of more than $501 billion. MarketLine predicts the industry will be worth almost $714 billion in 2015, representing 42% growth in five years. In terms of volume, the global airline industry grew 6% in 2010 to reach almost 2.4 billion passengers; this figure is forecast to climb more than 28% by 2015 to exceed 3 billion passengers.
Domestic demand represents the leading market segment within the global airline industry, accounting for almost 65% of the overall industry in terms of volume. Regionally, the Americas hold almost 45% of the industry in terms of value.
Obstacles faced by airline operators include uncertain economic climate, slow economic growth and climbing crude oil prices, reports Global Industry Analysts. The economic recession took its toll on the industry as air travel plunged despite falling oil prices. As consumers cut back on non-essential spending, such as travel and holidays, due to falling levels of disposable income, rising unemployment and economic volatility, the global transport industry saw revenue fall.
Apart from declining passenger numbers, airports also saw cargo volumes fall significantly in 2008 and 2009 as demand for goods declined, dragging down cargo volume shipments and pushing the airfreight industry into a turbulent period.
In 2010, a rise in air traffic served well for the global airline industry, though climbing fuel prices have boosted costs of operations, putting a dent in industry profit. Other negative factors facing industry players include raised concern over security, unstable exchange rates, political unrest and natural disasters.