Industry Analysis & Industry Trends
Stormy weather has dominated the skies for the Scheduled Passenger Air Transport industry. IBISWorld estimates industry revenue has declined at a compound annual rate of 0.3% over the five years through 2012-13 to reach £18.1 billion. The industry has been buffeted by rising input costs and rising input costs. Revenue growth of 3.0% is expected in 2012-13 as the industry continues to show signs of recovery despite the looming threat of a triple-dip recession. With recovery uncertain in the United Kingdom and eurozone, airlines will be nonetheless cautious about increasing capacity and are expected to offer further deals to attract consumers.
This fragile growth is expected to help the industry return to profitability in 2012-13... purchase to read more
Industry Report - Industry Products Chapter
International flights are the most common form of air travel in the United Kingdom, as more people fly in and out of the country than across it. The dominance of international flights stems from passengers' preference for cars, buses or trains when travelling domestically. On a price basis, the industry struggles to compete with privatised bus companies who offer intercity services. Since the recession, demand for all air travel has subsided. However, the economy class became more popular compared with the much more expensive business and first-class alternatives. The drop in demand for domestic air travel was steeper than for international air travel... purchase to read more