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Domestic Airlines in the US - Industry Market Research Report

  • August 2017
  • 40 pages
  • Ibisworld
Report ID: 167990

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In plane sight: Revenue will grow as consumer sentiment and disposable income levels rise

Abstract

Domestic Airlines in the US

The Domestic Airlines industry has expanded over the past five years, as rising levels of per capita disposable income, consumer confidence and total corporate profit have bolstered demand from both business and leisure travelers. At the same time, price competition within the industry has intensified in recent years as low-cost airlines continue to siphon passengers from industry leaders through no-frills service options. Moreover, recent declines in the world price of crude oil have caused the price of jet fuel to plummet, preventing many operators from generating revenue through fuel surcharge fees. Overall, industry revenue is estimated to increase over the five years to 2017. In line with continually improving economic conditions and an expected increase in demand for air travel, the Domestic Airlines industry is projected to continue growing over the next five years. Ultimately, industry revenue is forecast to grow over the five years to 2022.


The industry provides domestic air transportation for passengers and cargo over regular routes and on regular schedules. Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system. Regional carriers provide service 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.


This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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