Industry Analysis & Industry Trends
The past five years were extremely turbulent for airlines operating in the Scheduled Passenger Air Transport industry. IBISWorld estimates that industry revenue will decline by 0.2% per annum over the five years through 2011-12 to reach £17.4 billion. The industry is slowly recovering, with revenue growth of 4.0% expected in 2011-12. Despite a recovery in the global economy, airlines will be cautious about increasing capacity and are expected to offer further deals to attract consumers.
The industry is expected to recover from losses to post a profit of 2.8% of revenue during 2011-12. The slow recovery in demand will allow for an increase in airfares... purchase to read more
Industry Report - Industry Analysis Chapter
The past few years have been extremely turbulent for the Scheduled Passenger Air Transport industry. Growing competition, skyrocketing fuel prices and the recession all put downward pressure on airline performance. The pressure led to restructuring among carriers, with increased merger and acquisition activity. The overall effect was a decline in industry revenue, poor earnings and a contraction in industry size over the past five years.
Demand for air travel is the main driver behind the industry. Demand is affected by factors such as consumer and business confidence, household income and airfares. When sentiment is up and income is rising, demand for all travel tends to increase, leading to more passengers on planes... purchase to read more