Industry Analysis & Industry Trends
The Scheduled Passenger Air Transport industry includes all British companies that transport passengers on domestic or international routes on regular timetables. The industry is highly concentrated, with the four biggest players expected to account for 75.6% of industry revenue in 2016-17. The performance of the industry is affected by many factors, including consumer and business confidence, household income and airfare levels. When consumer sentiment is high and income is rising, demand for all travel tends to increase, boosting the number of passengers on planes. Similarly, consumer price sensitivity means that airfare prices are a highly important determinant of demand.
IBISWorld expects industry revenue to grow at a compound annual rate of 2.6%... purchase to read more
Industry Report - Industry Analysis Chapter
The performance of the Scheduled Passenger Air Transport industry has been relatively strong over the past five years. Positive movements in a number of key demand determinants have helped operators expand revenue. Demand for air travel is affected by factors such as consumer and business confidence, household income and airfare price levels. When consumer sentiment is high and income is rising, demand for all travel tends to increase, leading to an increase in passenger air travel. Consumer price sensitivity to air travel means that even small reductions in airfares generate increased demand. International travel is also influenced by the effective exchange rate. A weakened pound attracts foreigners keen to benefit from improved buying power in the United Kingdom. On .. purchase to read more