Due to rising disposable income, a rapidly expanding middle class, and rising travel demand, it is anticipated that the global airline industry market will expand during the coming years. Additionally, the cost of jet fuel is anticipated to be relatively steady during the forecast, enabling airlines to impose surcharges and generate extra money from the transportation of passengers and cargo. International trade in manufactured goods, notably in the components sector, which makes up a sizeable portion of current cross-border trade, depends on air transportation. This year, international trade transported by air will be worth $7.5 trillion, an increase of 15% from 2019, and it will increase by an additional 7.2 percent in 2022. Thus, increasing tourist spending on air travel—which reached $354 billion in 2021—is another factor driving industry expansion. Increased government support in the form of capital infusions, loans, deferred tax payments, and reduced tax obligations for airlines are among the factors driving market expansion throughout the forecast period, and it is predicted that employment opportunities in the airline industry market.
The COVID-19 pandemic's prolonged instability has severely impacted the airline industry market since it has caused problems for aircraft manufacturers around the world with cash flow, supply chain obstructions, and persistently weak demand. Moreover, one of the key elements endangering the viability of numerous companies in the airline industry market is the sharp decline in demand for passenger air travel due to the COVID-19 epidemic. Therefore, the COVID-19 pandemic crisis has completely halted all worldwide air transportation. Throughout the pandemic, this will finally result in a drop in airline industry market revenue.
Quick and Efficient Services will Enable the Airline Industry to Create Impressive Income
The significant increase in travel, e-commerce, and logistical transportation over the past few years has significantly impacted the airline industry market. Easy access to locations and the absence of physical obstacles are key factors propelling the airline industry market. Airlines can travel to and operate in remote areas inaccessible by other forms of transportation. Airlines don't need any new infrastructure, like train tracks or highways, to reach their destination. Therefore, they can take the shortest path possible. Additionally, airline industries are essential to the nation's security because modern planes are so important to warfare because they can travel long distances quickly.
Need for Significant Infrastructure Improvements could Impede the Expansion of the Market
Significant investments are needed to build airports, airbases, and aircraft, among other necessities. A further factor that is expected to limit market growth in the near future is the need for a highly qualified, experienced, and competent workforce for aircraft maintenance. Additionally, due to the extremely low carrying capacity and high transit costs of aircraft, the airline industry market expansion may be hampered.
By Commercial Airlines
Based on commercial airlines, the industry market is segmented into passenger aircraft and freight aircraft. The freight aircraft category dominated the market in 2022. This market is anticipated to grow, resulting in integrated airfreight services becoming more and more well-liked and quick shipment delivery compared to other alternative logistics solutions. In addition, it is anticipated that over the forecast period, the use of cool-chain technology, robotics, automated systems, artificial intelligence (Al), Big Data, deep learning, loT, and augmented & virtual reality will increase across several operations.
Based on the destination, the airline industry market is segmented into domestic and international. The domestic category dominated the market in 2022. Low air prices, growing living standards, and an anticipated global gross domestic product recovery are driving this trend. In addition, fleet expansion, rising demand for fuel-efficient aircraft, relentless advancements in aviation technology, such as the use of light carbon composites in aircraft manufacture, and an increase in air travelers all contribute to the growth of the domestic aircraft market.
The Asia Pacific is projected to hold the largest airline industry market share over the forecast period. The significant increase in air traffic, supportive government measures, and the expanding tourism sector in Asia, particularly in India, Thailand, Singapore, and Japan, are the main drivers of the Asia-Pacific airline market's substantial expansion. The Asia-Pacific airline industry market is also benefiting from some of the major investments and advances in the Asian airline industry market. On the other hand, the North American airline industry market is anticipated to grow significantly over the forecast period. The rise in high-net-worth people (HNWIs), along with continuous research and development efforts focused on producing light aircrafts, are expected to support the North American airline industry market during the projection period. New product launches, long-term service contracts, and procurement are major drivers fueling the market expansion. Technological advancements in the airline industry are another important aspect.
LIST OF KEY COMPANIES PROFILED:
- Air France-KLM S.A.
- American Airlines Group Inc.
- Ana Holdings Inc.
- British Airways Plc
- Delta Air Lines, Inc.
- Deutsche Lufthansa AG
- Hainan Airlines Co., Ltd.
- Japan Airlines Co., Ltd.
- LATAM Airlines Group S.A.
- Qantas Airways Limited
- Ryanair DAC
- Singapore Airlines
- Southwest Airlines Co.
- Thai Airways International PCL
- United Airlines Holdings, Inc.
- WestJet Airlines Ltd
- April 2020: Lockheed Martin made public a contract for USD 4.7 billion for the modification of 78 F-35 Lightning II Joint Strike Fighters. 48 F-35As with conventional takeoff and landing for the US Air Force, 14 F-35Bs with short takeoff and vertical landing for the Marine Corps, and 16 F-35C stealth fighters carried by carriers are the outputs demanded under the contract.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Commercial Airlines, By Destination, and By Geography|
|By Commercial Airlines||