Losing altitude: Declining demand and rising competition have caused revenue to fall

The Non-Scheduled Passenger Air Transport industry comprises businesses that transport passengers by air on a non-scheduled basis. The industry focuses mainly on flights operated by charter airlines with holiday destinations and is dominated by two players, TUI Airways (formerly Thomson Airways) and Thomas Cook Airlines, which are also involved in other areas of the travel industry, such as the provision of all-inclusive tours. Although the industry may be perceived as providing tailored travel services for the wealthy, the bulk of industry revenue is generated by transporting customers to their holiday destination as part of a travel package...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Industry profitability has been hit by rising compensation claims over the past five years
  • All-inclusive holiday deals offered by vertically integrated firms have helped to limit decline
  • Strong competition is expected to limit firms’ ability to lower prices, placing pressure on margins
  • Industry Report - Industry Products Chapter

    Flights to and from the European UnionFlights to destinations in the European Union are the most popular type of charter passenger flight in and out of the United Kingdom. In 2017-18, an estimated 74.4% of charter passengers at British passengers are expected to be either going to or coming from a destination from within the European Union. The majority of charter passenger services operate between the United Kingdom and Spain and Greece, which are two of the most common package holiday destinations for UK tourists. The proportion of services accounted for by EU destinations is estimated to have increased over the past five years...purchase to read more.

    Additional Insights for the Non-Scheduled Passenger Air Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Non-Scheduled Passenger Air Transport Industry are

  • Having a good reputation
  • Ability to provide goods/services in diverse locations
  • Development of a symbiotic relationship with another industry
  • IBISWorld analysts also discuss how external factors such as Outbound tourism by UK residents and Real household disposable income in the Non-Scheduled Passenger Air Transport industry impact industry performance..

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    What's in this report

    What is the Non-Scheduled Passenger Air Transport Industry?

    Companies in this industry provide non-scheduled passenger air transport to domestic and international destinations. The industry also includes scenic and sightseeing flights, regular charter flights for passengers and transport of passengers by aero clubs.

    Industry Products
  • Flights to and from the European Union
  • Flights to and from the rest of Europe
  • Flights to and from North Africa
  • Domestic flights
  • Flights to and from the rest of the world
  • Industry Activities
  • Providing non-scheduled charter flights for passengers
  • Transporting passengers by helicopter
  • Operating private jets
  • Operating scenic and sightseeing flights
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Outbound tourism by UK residents
  • Real household disposable income
  • Business confidence index
  • Demand from scheduled passenger air transport

  • Current Performance
  • A steady descent
  • Cheap seats
  • Fluctuating fuel prices
  • Deal breaker
  • Regulatory changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Fuelling costs
  • Up in the air
  • Regulatory changes
  • Table: Non-Scheduled Passenger Air Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Non-Scheduled Passenger Air Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Travel Agencies
  • Tour Operators
  • Consumers

  • Key Selling Industries
  • Air Transport Equipment Rental & Leasing
  • Aircraft Repair, Maintenance & Overhaul
  • Aircraft, Engine & Parts Manufacturing
  • Airports
  • Fuel Wholesaling

  • Products & Services
  • Flights to and from the European Union
  • Flights to and from the rest of the world
  • Flights to and from the rest of Europe
  • Domestic flights
  • Flights to and from North Africa
  • Chart: Non-Scheduled Passenger Air Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged under 35
  • Consumers aged between 35 and 49
  • Consumers aged between 50 and 64
  • Corporate and government
  • Consumers aged over 64
  • Chart: Major Market Segmentation for the Non-Scheduled Passenger Air Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesNavigation and landing feesDepreciationRent and utilitiesMaintenance and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Non-Scheduled Passenger Air Transport

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Non-Scheduled Passenger Air Transport Industry

  • Industry Globalization
    TUI Airways Ltd, Thomas Cook Airlines Ltd,
  • Table: TUI Airways Ltd - financial performance
  • Table: Thomas Cook Airlines Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Non-Scheduled Passenger Air Transport Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Non-Scheduled Passenger Air Transport Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Air Charter
  • The business of renting an entire aircraft as opposed to individual seats on an aircraft.
  • Apd
  • Stands for Air Passenger Duty. An excise duty levied on the carriage of chargeable passengers on any chargeable aircraft taking off from a UK airport.
  • Terminal Passenger
  • A passenger joining or leaving an aircraft at the reporting airport.
  • Wet Lease
  • An arrangement under which the lessor provides a crew and sometimes also fuel when leasing aircraft.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Non-Scheduled Passenger Air Transport market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Non-Scheduled Passenger Air Transport:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Non-Scheduled Passenger Air Transport market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Non-Scheduled Passenger Air Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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