Touching down: Rising input costs and price competition have negatively affected the industry

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 85% of industry revenue in 2018-19. The performance of the industry is affected by many factors, including consumer and business confidence, disposable income trends and airfare levels. When consumer confidence is high and income is rising, demand for travel tends to grow, increasing the number of passengers on planes. Similarly, consumer price sensitivity means that airfare prices are an important determinant of demand.IBISWorld expects industry revenue to grow at a compound annual rate of 0.7%...read more.

Industry Statistics & Market Size
Revenue
£22.8bn
Annual Growth 14-19
0.7%
Forecast Growth 19-24
Profit
Employment
60,327
Businesses
125

Industry Threats & Opportunities

  • Rising costs and price competition have caused slight revenue fluctuations over the period
  • Though many firms have hedging contracts for fuel, volatile prices have affected industry profit
  • Increasing competition from foreign airlines isexpected to support investment in new aircraft
  • Industry Report - Industry Analysis Chapter

    The performance of the Scheduled Passenger Air Transport industry has been mixed over the past five years. Positive movements in a number of key demand determinants helped operators expand revenue at the beginning of the five-year period through 2018-19. Demand for air travel is affected by consumer and business confidence, household income and airfare price levels. When consumer confidence 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 weak pound attracts foreigners keen to benefit from improved buying power in the United Kingdom. On ...purchase to read more.

    Additional Insights for the Scheduled Passenger Air Transport Industry

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

  • Optimum capacity utilisation
  • Ability to expand and curtail operations rapidly in line with market demand
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Consumer confidence index and Outbound tourism by UK residents in the Scheduled Passenger Air Transport industry impact industry performance..

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    What's in this report

    What is the Scheduled Passenger Air Transport Industry?

    Companies in this industry provide air transport for passengers on scheduled routes only. This includes domestic and international flights.

    Industry Products
  • Domestic flights
  • Flights to Europe
  • Flights to North America
  • Flights to the rest of the world
  • Industry Activities
  • Domestic passenger transport
  • International passenger transport
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer confidence index
  • Outbound tourism by UK residents
  • International tourist numbers
  • Real effective exchange rate

  • Current Performance
  • Up and away
  • Turbulent costs
  • Brought back to earth
  • Chart: Revenue Growth

  • Industry Outlook
  • Excess supply
  • Tax changes
  • Bumpy landing
  • Regulation
  • Table: Scheduled Passenger Air Transport Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Travel Agencies
  • Consumers

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

  • Products & Services
  • Flights to Europe
  • Domestic flights
  • Flights to the rest of the world
  • Flights to North America
  • Chart: Scheduled Passenger Air Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • UK residents
  • Foreign residents
  • Foreign businesses
  • UK businesses
  • Chart: Major Market Segmentation for the Scheduled Passenger Air Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Scheduled Passenger Air Transport

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

  • Industry Globalization
    British Airways plc, easyJet Airline Company Ltd, Virgin Atlantic Airways Ltd,
  • Table: British Airways plc - financial performance
  • Table: easyJet Airline Company Ltd - financial performance
  • Table: Virgin Atlantic Airways Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the 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 Scheduled Passenger Air Transport Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Civil Aviation Authority (Caa)
  • The Civil Aviation Authority is a statutory corporation that regulates civil aviation in the United Kingdom.
  • Flag Carrier
  • An airline that enjoys preferential rights or privileges for international operations. These are accorded by the government of the country in which it is based.
  • Handling Charges
  • Operators often subcontract the servicing of aircraft at an airport, for which they pay handling fees.
  • Low-Cost Carrier (Lcc)
  • A term given to all airlines that have low fares and charge for other services, such as food.
  • Oil Routes
  • Flights to oil producing countries.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Scheduled Passenger Air Transport market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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
    • Quickly build competitive intelligence
    This report on 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 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 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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