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Airline Market: Latest Industry Trends and Statistics

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Global Airline Industry

The global airline industry represents a strong segment of the air transport industry.

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 spendings, such as travel and holidays, due to falling levels of disposable income, rising unemployment, and economic volatility, the global transport industry saw revenue fall.

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.

Airline Market Outlook

The global airline industry has had to change its strategic approach in a bid to limit the damage incurred due to the global economic downturn. Such changes include making airfare more accessible to passengers to boost numbers, consolidation within the industry and capacity rationalization, reports Global Industry Analysts.

Consolidation has played a central role in the global airline industry over recent years and has helped it remain afloat despite falling passenger numbers and declining cargo volume shipments. Industry players have tried to make operations more efficient and boost profitability through consolidation. One way of boosting airline efficiency has involved the acquisition of new aircrafts, which has allowed airlines to better manage their costs and streamline operations.

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Parent industry: Air Transport
Related industries: Airport

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